The Australian state of Queensland has adopted a ban on underground coal gasification (UGC), a controversial technique in which coal is gasified below the surface by injecting fluids (air, steam, etc.) into coal seams, raising concerns over greenhouse gas emissions and water contamination.
In March 2016, Queensland charged Linc Energy (Singapore) with causing environmental damages after a gas leak at one of its UGC pilot plants, prompting the company to seek voluntary ministration, a form of bankruptcy. The ban also affected Carbon Energy, which invested A$150m (US$115m) over eight years developing UGC technology.
In March 2016, Wales (United Kingdom) banned underground coal gasification, as part of a broader precautionary policy regarding the development of unconventional oil and gas resources; Wales also enacted a temporary ban on shale gas hydraulic fracturing (fracking).
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