High prices of oil and natural gas are leading to increased interest in "BTU Conversion" technologies such as gasification, methanation and liquefaction.

Coal gasification breaks down the coal into its components, usually by subjecting it to high temperature and pressure, using steam and measured amounts of oxygen. This leads to the production of syngas, a mixture mainly consisting of carbon monoxide (CO) and hydrogen (H₂).

 

Gasification is also a possibility for future energy use, as the produced syngas can be cleaned-up relatively easily leading to cleaner burning than burning coal directly (the conventional way). The cleanliness of the cleaned-up syngas is comparable to natural gas enabling to burn it in a more efficient gas turbine rather than in a boiler used to drive a steam turbine. Syngas produced by gasification can be CO-shifted meaning that the combustible CO in the syngas is transferred into carbon dioxide (CO₂) using water as a reactant. The CO-shift reaction also produces an amount of combustible hydrogen (H₂) equal to the amount of CO converted into CO₂. The CO₂ concentrations (or rather CO₂ partial pressures) obtained by using coal gasification followed by a CO-shift reaction are much higher than in case of direct combustion of coal in air (which is mostly nitrogen). These higher concentrations of carbon dioxide make carbon capture and storage much more economical than it otherwise would be.