Underground Coal Gasification Becoming an Option in Markets Where Gas is Costly

- December 13th, 2012

Forbes reported that underground coal gasification, a technology that had positioned itself as a inexpensive, more carbon friendly energy alternative in the face of natural gas prices rose may be making a comeback.

Forbes reported that underground coal gasification, a technology that had positioned itself as a inexpensive, more carbon friendly energy alternative in the face of natural gas prices may be making a comeback.

As quoted in the market report:

In other parts of the world, where coal seams are deeper and gas prices are well over $10 per mmBtu, UGC is making more progress.  China, India, South Africa, New Zealand, Australia, and other countries are pushing the technology harder.  Currently, China is reported to have approximately 30 plants in various stages of development.  India is reviewing the the process intently, as it has a serious problem accessing its coal supply.  South Africa has a long history of syngas production (since the apartheid days), and has pilot facilities that have been operating for some years.  Australia possesses a site which has been operating for over a decade, and they use the process to produce cost-competitive diesel fuel.

To view the whole Forbes report, click here.

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