Based on the analysis of technical features of several coal gasification and direct reduction processes,a 1.8Mt/a combined process of Shell coal gasification and HYL/Energiron direct reduction shaft was proposed with consideration of natural resources availability in China.The technical parameters of new process were calculated.It shows that the energy consumption and emission of the new combined process is better than blast furnace.The economic performance of new process was compared also under different raw material conditions in various regions.A scheme for the engineering of direct reduction was provided through using coal gas as reducing agent.