The joint research initiative - signed between the university and Chevron Corporation subsidiary Chevron Energy Technology Company - will finance an intensive research project with a focus on coal chemistry and conversion technology, advanced fuels, combustion, analysis methods, reactor science, separations, process technology, and greenhouse gas management and conversion.
The alliance also will integrate research with educational and career opportunities for students and graduates specialising in coal conversion and energy technologies.
Chevron vice-president Don Paul said the company is confident the research alliance will help it lead the industry in the field of coal conversion technology.
"We will draw on the deep expertise of both institutions to push the front edge of technology and innovation into the 21st century," Paul said.
"We look forward to a highly productive research relationship that will contribute to the technical innovations of clean coal and coal-to-liquid technology."