Global Development of Commercial Underground Coal Gasification

Abstract

Global development of Underground Coal Gasification (UCG) is considered here in light of latest trends of energy markets and environmental regulations in the countries that have been traditional proponents of UCG. The latest period of UCG development triggered by initial success of the Chinchilla UCG project (1997-2006) has been characterized by preponderance of privately and share-market funded developments. The deceleration of UCG commercialization has been in part caused by recent significant decrease of world oil, gas and coal prices. Another substantial factor was lack of necessary regulations governing extraction and conversion of coal by UCG method in the jurisdictions where the UCG projects were proposed and developed. Along with these objective causes there seem to have been more subjective and technical reasons for a slowdown or cancelation of several significant UCG projects, including low efficiency, poor environmental performance, and inability to demonstrate technology at a sufficient scale and/or at a competitive cost. Latest proposals for UCG projects are briefly reviewed.