A process for preparing a hydrocarbon in water emulsion includes the steps of providing a hydrocarbon phase containing inactive natural surfactant; mixing a solid carbon additive with the hydrocarbon phase, the solid additive being selected from the group consisting of coal, coke and mixtures thereof so as to provide a hydrocarbon suspension including the solid carbon additive; and forming an emulsion from the hydrocarbon suspension and an aqueous phase in the presence of a surfactant activating additive so as to activate the inactive natural surfactant and form a hydrocarbon in water emulsion having the solid carbon additive suspended in the hydrocarbon phase. A hydrocarbon in water emulsion is also provided including a hydrocarbon phase, a water phase, a surfactant, and a solid carbon additive suspended in the hydrocarbon phase, the solid carbon additive being selected from the group consisting of coal, coke and mixtures thereof.