PURPOSE: To obtain an alcoholic fuel containing ethanol essentially and a hydrocarbon efficiently from CO and H2, by using a novel catalyst containing a combination of a cluster compound of Rh or Pt and/or a Fischer-Tropsch catalyst.

CONSTITUTION: H2 and CO of a water gas which is a raw material are adjusted to a molar ratio of 2.5W3, and an unreacted gas are introduced into a synthetic reactor packed with a novel catalyst and reacted at 250W320°C and 20W 150kg/cm2 to separate the formed liquid from the gas. The per-pass conversion of the water gas is as high as 5W20%. The liquid is an alcohol containing ethanol essentially, and directly usable as an alcoholic fuel. On the other hand, the gas is an unreacted gas and a hydrocarbon gas, and the hydrocarbon gas may be used directly as a gaseous fuel or a raw material for the petrochemistry, but introduced into a shift reactor to prepare water gas and then returned to the synthetic reactor with the unreacted gas.