An apparatus for upgrading coal comprising a baffle tower, inlet and exhaust plenums, and one or more cooling augers. The baffle tower comprises a plurality of alternating rows of inverted v-shaped inlet and outlet baffles. The inlet and outlet plenums are affixed to side walls of the baffle tower. Process gas enters the baffle tower from the inlet plenum via baffle holes in the side wall and dries the coal in the baffle tower. Process exhaust gas exits the baffle tower into the exhaust plenum via baffle holes in a different side wall of the baffle tower. Coal that enters the baffle tower descends by gravity downward through the baffle tower and enters a cooling auger, where the dried coal from the baffle tower is mixed with non-dried coal. A method of using the apparatus described above to upgrade coal.