Underground coal gasification: issues in commercialisation

Back in 2007, it was expected that commercial gas production from underground coal gasification (UCG) technology would be in progress within the following 5 years. This has not occurred, particularly in Australia, where at the time three commercial projects were being aggressively pursued. This paper reviews each of five key issues that may be considered to have delayed UCG commercialisation. Of these, it is concluded that the primary factor is the use of government environmental policy to achieve its preferred energy outcomes, as in the development of the coal seam gas industry in Australia. It is concluded that the UCG industry must select appropriate markets and utilise small-scale financially viable projects to achieve its required commercial breakthrough.