Underground Coal Gasification Technology: A Review of Advantages, Challenges, and Economics
Abstract
1. Introduction
1.1. Basic Principles and Technical Arrangements of UCG
1.1.1. Chemical and Physical Processes
- (1)
- Drying: The coal seam is heated to 100–150 °C to remove free moisture, which is a prerequisite for subsequent pyrolysis.
- (2)
- Pyrolysis: At 300–600 °C, coal macromolecular structures decompose into volatiles (methane, hydrogen, light hydrocarbons, tar) and solid semi-coke, with tar yield peaking at 450–550 °C.
- (3)
- Oxidation: Semi-coke reacts with oxygen (injected as gasification agent) at 800–1200 °C to produce CO2, CO, and a large amount of heat (main reactions: C + O2 = CO2 + 393.5 kJ/mol; 2C + O2 = 2CO + 221 kJ/mol), which provides energy for drying and pyrolysis.
- (4)
- Reduction reactions (carbon as a reducing agent): CO2 and steam (supplemented as a gasification agent) react with hot semi-coke under the heat of the oxidation zone to generate H2 and CO (main reactions: C + CO2 = 2CO − 172.4 kJ/mol; C + H2O = CO + H2 − 131.3 kJ/mol), forming syngas as the final product.
1.1.2. Gas Supply/Gas Withdrawal Arrangements
- (1)
- Two-well system: The injection well (vertical/horizontal) injects gasification agents, the production well extracts syngas, and gasification channels are formed by reverse combustion (ignition at the production well end, the combustion front moves toward the injection well). It is suitable for coal seams with thicknesses > 3 m and a stable structure, with the advantages of a large gasification area and stable output.
- (2)
- Single-well system: A single well with multi-layer casing, where inner casing injects gasification agents and annular space extracts syngas, or vice versa. The gasification channel is formed by directional fracturing. Suitable for thin coal seams (<3 m) or scattered coal resources, with low drilling cost but limited gas production scale.
- (3)
- Horizontal well system: Horizontal wells are drilled along coal seams (length 500–1000 m), with multiple gas injection points and a single syngas extraction point. This expands the gasification contact area, improves reaction uniformity, and is suitable for thin to medium–thick coal seams (1–8 m) with stable continuity.
1.2. Development History and Major Projects
- (1)
- Early exploration (1910s–1950s): The first UCG test was carried out in the UK in 1912. The former Soviet Union completed the first industrial UCG power generation project in 1939.
- (2)
- Technological improvement (1960s–2000s): The US carried out the Hoe Creek series tests (1976–1982) to verify deep coal seam gasification feasibility. China launched UCG field tests in the 1990s.
- (3)
- Modern development (2010s–present): Major operating projects include Canada’s Swan Hills Synfuels project (Alberta, syngas production for power generation and chemical synthesis), South Africa’s Sasol UCG demonstration project (coupled with the coal chemical industry), and China’s Zhongliangshan coal mine UCG project (steeply inclined thin coal seam recovery).
2. Core Performance of UCG Technology
2.1. Resource Adaptation Advantages
2.1.1. Complex Deep Coal Seams
2.1.2. Low-Quality Coal Seam
2.1.3. Multi-Rank Coal Adaptability
2.2. Resource Efficiency Advantages
2.2.1. Resource Development Potential
2.2.2. Advantages of Hydrogen Production
2.2.3. Advantages of Syngas
2.3. Environmental Advantages
2.3.1. Carbon Emission Reductions
2.3.2. Resource Utilization of Waste
2.3.3. Pollution Control Measures
- Wastewater treatment
- 2.
- Heavy metal treatment
2.4. Intensification of Gasification Process
3. Economic Assessment
3.1. Comparative Analysis of Investment Costs
3.1.1. Investment Cost of UCG Hydrogen Production
3.1.2. SCG Hydrogen Production Investment Cost
3.2. Comparative Analysis of Operating Expenditure
3.2.1. UCG Hydrogen Production Operation Expenditure
3.2.2. SCG Hydrogen Production Operating Expenses
3.3. Comparative Analysis of Product Revenue
3.3.1. Benefits of UCG Hydrogen Production Products
- In terms of the main product hydrogen, the coal–hydrogen conversion efficiency can reach 58.1% under the baseline condition, which is equivalent to the SCG process level. By optimizing the proportion of gasification agent, the hydrogen content in the syngas produced by the modern UCG process is increased to 40–55%, and the purity can reach 99.9–99.99% after pressure swing adsorption purification. The market price is the same as that of SCG-H2.
- In terms of unit cost, UCG-H2 has obvious advantages. The hydrogen cost without CCS is 0.1 USD/m3, which is only 43.2% of SCG-H2, and even if 80% of the CCS system is configured, the cost rises to 0.14 USD/m3, which is still significantly lower than 0.27 USD/m3 of SCG-H2.
- In terms of by-products and carbon benefits, UCG-H2 can co-produce electricity. Without CCS, about 4.7% of coal energy is converted into on-grid electricity. After CCS is configured, the conversion rate can still maintain 2.4%, and the corresponding electricity revenue is about 0.05–0.10 USD. If combined with a solid oxide fuel cell system, the co-production efficiency can be further improved [124]. In addition, methane rich in syngas can be used as a fuel supplement or converted into additional hydrogen through steam reforming, increasing the total hydrogen yield by 10–15%, or co-mining with coalbed methane for purification and sales. After CCS is configured, CO2 can be directly stored in the underground cavity, and the storage capacity of a single cavity with a depth of 1000 m is 1700–4500 tons. According to the current carbon price of 8.28 USD/ton, the annual carbon income is about 0.41–0.69 million USD, and CO2 can be used to drive crude oil exploitation to improve the comprehensive income [125].
3.3.2. Profit of SCG Hydrogen Production Products
3.4. Comparative Analysis of Environmental Cost Compensation
3.4.1. Environmental Cost Compensation of UCG Hydrogen Production
3.4.2. SCG Hydrogen Production Environmental Cost Compensation
4. Challenges and Future
4.1. Environmental Risk
4.1.1. Waste Water and Gas Pollution
4.1.2. Metal Pollution
4.2. Geological Risk
4.2.1. Geological Disaster
4.2.2. Variation of Rock Mass Strength
4.3. Technology to Be Optimized
4.3.1. Process to Be Optimized
4.3.2. Temperature Field Control
4.3.3. Ignition and Combustion Control
4.4. Future Development Direction
- Collaboration of UCG and natural gas to oil technology
- 2.
- Artificial intelligence empowering UCG technology
- 3.
- Multi-energy complementation of UCG and geothermal utilization technology
- 4.
- Emerging coupling technologies
5. Conclusions
- UCG technology has significant advantages in developing difficult-to-mine coal resources: it can adapt to deep coal seams (buried depth of 500–2200 m), low-quality coal, and multi-rank coal, with a resource recovery rate of more than 60%; the solid waste output is half of that of traditional coal-fired power plants, and near-zero emissions can be achieved with CCS; and the total investment and hydrogen production cost are lower than those for SCG (without CCS, the hydrogen cost is 0.11 USD/m3, only 43.2% of SCG).
- UCG technology faces three major challenges: environmental risks (groundwater pollution by heavy metals, waste gas leakage), geological risks (ground subsidence, rock mass strength reduction), and technical bottlenecks (difficult ignition control, unstable large-scale production).
- Future research should focus on three directions: integrating UCG with natural gas-to-liquid technology to expand product channels; applying AI to realize real-time prediction of geological risks and process optimization; and coupling UCG with geothermal utilization to improve waste heat recovery efficiency.
Author Contributions
Funding
Data Availability Statement
Conflicts of Interest
Glossary
| English Abbreviation | English Full Name |
| AGRU | acid gas removal unit |
| ASU | air separation unit |
| CCF | cumulative cash flow |
| CCS | carbon capture and storage |
| CGU | coal gasification unit |
| CI | capital investment |
| CMC | carbon mitigation cost |
| CSU | cryogenic separation unit |
| IRR | internal rate of return |
| NCF | net cash flow |
| PC | product cost |
| PSAU | pressure swing adsorption unit |
| SCG | surface coal gasification |
| SCG-H2 | SCG-based H2 production |
| SRU | sulfur recovery unit |
| UCG | underground coal gasification |
| UCG-H2 | UCG-based H2 production |
| WGSU | water gas shift unit |
| BTEX | benzene, toluene, ethylbenzene, xylenes |
| RGO | reduced graphene oxide |
| C-A-S-H | calcium–aluminum–silicate–hydrate |
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| Investigator | Research Theme | Core Content |
|---|---|---|
| Huan Liudeng, et al. [54] | Hydrogen production cost of UCG | The hydrogen production cost of UCG is 77.1% of SCG, 0.11 USD/m3, but the equipment maintenance cost increases by 10–15% due to underground uncertainty. |
| Muhammad Imran, et al. [12] | UCG environmental protection and resource consumption | The amount of solid waste and water is significantly reduced, but the treatment cost of toxic pollutants (e.g., phenols) is 8–12% higher than that of SCG |
| Zixiang Wei, et al. [23] | Optimization of UCG hydrogen production process | Multi-point water injection hydrogen extraction is 11%. |
| Zhen Yin, et al. [31] | Two-step gasification of coal to produce hydrogen | The total hydrogen output is 0.3–0.43 m3/kg, accounting for 53.08–56.60% of the effective gas, but the production fluctuation range is 5–8%. |
| Surya Kanta, et al. [53] | UCG hydrogen production efficiency improvement | Humidifying oxygen, steam, and optimizing reaction conditions to increase hydrogen content in syngas. |
| Aman Verma, et al. [55] | Collaboration of UCG and CCS | UCG combined with CCS to achieve environmental and economic coordination. |
| Liu Shuqin, et al. [56] | Advantages of hydrogen production by UCG-CCS | Low greenhouse gas emissions, low cost. |
| Qin yong, et al. [57] | UCG crude gas economy | The economic competitiveness of crude gas utilization has been verified. |
| Chen jingrui, et al. [58] | UCG multi-domain benefits | It has significant benefits in power generation, hydrogen production, and chemical production. |
| Huan Liu, et al. [59] | UCG hydrogen production energy consumption and CO2 capture set | At an 80% CO2 capture rate, the energy consumption of UCG is 61.2% that of SCG. |
| Huan Liu, et al. [60] | Deep IGCtH technology advantages | The cumulative energy consumption is 83.6% of Lurgi surface gasification, and the investment is 68.7%. |
| K. Kostur, J, et al. [61] | UCG operation and security | Without underground manual operation, it is expected to reduce capital operation costs. |
| Yi tongsheng, et al. [62] | Economic influencing factors of UCG project | The synthetic gas utilization route and CO2 treatment method or cost have a great impact. |
| Krzysztof Stanczysztof, et al. [63] | Two-stage gasification of hard coal for hydrogen production | The average hydrogen concentration in the steam phase is 53.77% after alternating oxygen or steam injection. |
| Vman Verma, et al. [64] | Application and environmental protection of UCG products | Syngas can generate electricity and produce hydrocarbon fuel or hydrogen; UCG+CCS hydrogen production, carbon emissions reduction. |
| Greg Perkins, et al. [65] | Usage of UCG syngas | Available for fuel and chemical production. |
| Zong kaiqiang, et al. [66] | Optimization of UCG hydrogen extraction parameters | When the adsorption time is 620 s and the pressure is 3.5 MPa, the purity of H2 is 99.969% and the recovery rate is 78.3%. |
| Haiyang Fan, et al. [67] | Environmental benefits of UCG-CCS | UCG combines CCS to extract hydrogen production, reduce carbon emissions, and improve energy cleanliness. |
| Investigator | Evaluation Dimension | Traditional Mining | SCG | UCG |
|---|---|---|---|---|
| Huaizhan Li, et al. [10] T. C. Ekneligoda, et al. [92] | Recovery rate of resources (%) | 40 | 50–55 | 60+, but varies by ±5% with coal seam stability |
| Muhammad Imran, et al. [12] Dorota Burchart, et al. [88] | Solid waste amount (relative value) | 100 | 80 | 50, but toxic pollutants in waste require special treatment |
| Huan Liu, et al. [54] | Hydrogen production cost (USD/Nm3) | - | 0.25–0.30 | 0.11–0.16, but additional environmental risk prevention costs account for 3–5% of the total cost |
| Marian Wiatowski, et al. [93] Wu Gao, et al. [94] | Surface subsidence risk | High | Low (no mining activity) | Low (in situ gasification) |
| UCG-H2 | SCG-H2 | Advantage Side | |
|---|---|---|---|
| Total investment cost | About 65–82% of the SCG | The benchmark is higher | UCG-H2 |
| Cost of material | Almost zero | Accounts for 62% of the product cost | UCG-H2 |
| Energy consumption | 20–30% lower than SCG. | Higher | UCG-H2 |
| Hydrogen unit cost | 0.1–0.147 USD/Nm3 | 0.2366–0.2772 USD/Nm3 | UCG-H2 |
| Environmental treatment cost | Lower (ash left underground) | Higher (need to deal with solid waste, wastewater) | UCG-H2 |
| UCG-H2 | SCG-H2 | Comparison | |
|---|---|---|---|
| By-product income | Diversification (electricity, methane, carbon gains) | Diversified (electricity, steam, ash, hydrogen, synthetic fuel) | SCG-H2 has advantages in by-product types, but UCG-H2 has higher comprehensive benefits. |
| Environmental compensation | High (multiple subsidies, carbon gains) | Low (limited subsidy) | UCG-H2 is more favored by policy. |
| Technology maturity | Newer, great potential | Relatively mature, but there are still stability and reliability limitations | SCG-H2 is more mature in application but has obvious limitations. |
| Main risk | Groundwater pollution (high potential treatment costs) | High normalized environmental protection expenditure | SCG is currently costly, and UCG risk is concentrated. |
| Investigator | Risk Type | Existing Technology | Treatment Effect | Existing Shortcomings |
|---|---|---|---|---|
| Aleksandra Strugata-Wieczorek, et al. [112]. | Wastewater pollution | Adsorption–electrocoagulation–wetland system | The removal rate of heavy metals was more than 96% | Manganese ions are not removed and still have toxicity |
| Bing Xu, et al. [119]. | Heavy metal pollution | UCG residual coke adsorption | The removal rate of Cr (VI) was 72.44% (lignite) | The adsorption capacity decreases with temperature |
| Jingjie Wu, et al. [134]. Lin Xin, et al. [142]. | Syngas leakage pollution | Tight rock isolation | Leakage rate < 5% (shallow) | Deep coal seam cracking is difficult to control |
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Liu, Y.; Li, Y.; Jiang, J.; Liu, F.; Liu, Y. Underground Coal Gasification Technology: A Review of Advantages, Challenges, and Economics. Energies 2026, 19, 199. https://doi.org/10.3390/en19010199
Liu Y, Li Y, Jiang J, Liu F, Liu Y. Underground Coal Gasification Technology: A Review of Advantages, Challenges, and Economics. Energies. 2026; 19(1):199. https://doi.org/10.3390/en19010199
Chicago/Turabian StyleLiu, Yancheng, Yan Li, Jihui Jiang, Feng Liu, and Yang Liu. 2026. "Underground Coal Gasification Technology: A Review of Advantages, Challenges, and Economics" Energies 19, no. 1: 199. https://doi.org/10.3390/en19010199
APA StyleLiu, Y., Li, Y., Jiang, J., Liu, F., & Liu, Y. (2026). Underground Coal Gasification Technology: A Review of Advantages, Challenges, and Economics. Energies, 19(1), 199. https://doi.org/10.3390/en19010199

