The ever increasing prices, poor energy source mix and limited supplies of energy resource isrnbecoming a bottle neck for sustainable development strategies of the country and to achieve thernmillennium development goals. To alleviate this development obstacle, the country has to findrnanother alternative locally available resource that can substitute the imported energy sourcern(petroleum products). One of the potential resources the country owns is coal, greater than 300rnmillion tons of proved lignite coal reserves in its different geological parts: Yayu, Moye and Delbirnas the top three major reserve areas with 229, 40-50 and 20 million tons respectively and there arernmore than 23 occurrence localities identified yet.rnThis research raises and discuses the question of how coal resource in the country can be used inrnmetal industries to substitute imported heavy fuel oils based on the current technology & demandsrnto secure (facilitate) sustainable development of the country. This thesis therefore, is dedicated torndemonstrate how coal can be used in metal industries and to propose a better system for bothrneconomic and environmental performances advantages.rnThe energy demand and consumption of the selected factories (1) Ethiopian Iron and SteelrnFactory, (2) Akaki Metal Products Factory and (3) Zuqalla Steel Rolling Mill Enterprise is meetrnfrom heavy fuel oil and electric power. Except, Akaki Spare Parts and Hand Tools SharernCompany which uses electric power as a major source of energy, heavy fuel oil accounts the majorrnshare.rnFor the Case Factory, the existing energy conversion system (oil fire furnace) is more flexible tornuse for the combustion of coal. By modifying to fluidize bed combustion, it is possible to utilizerncoal with better efficiency and easy control of emissions (sulfur and nitrogen oxides).rnTherefore, the indigenous coal can play significant role to reduce the hard currency expenditurernfor the imported petroleum products and improve the energy source mix of the country, more over,rncoal in this application area will help the country to maintain the economic development strategiesrnand make Ethiopia self-reliant in the energy supply