Underground coal gasification (UCG) or
in-situ generation of syngas through the partial oxidation
of underground coal seams has been pioneered in the
Chinchilla UCG-IGCC project located 350 km west of
Brisbane, Queensland, Australia. The project is the
first to use UCG for gas production with an underground
gasifier and a 70-MW power island. The capital cost
of this technology is expected to be less than half
of the traditional gasification plant, and as a result,
syngas can cost less than $1/MMBtu or cheaper than
US-mined coal. The process also gives the unique opportunity
to sequester CO2 in the depleted underground gasification
reactors. Wide introduction of UCG together with CO2
management will allow dramatic reduction in greenhouse
gas emissions. It also has the potential to significantly
reduce the cost of electricity and create a powerful
alternative to imported petroleum products in many
developed countries.
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