The company got licences to investigate the underground sites offshore from Canonbie, Dumfrieshire; Cromer, Norfolk; Humberside; Sunderland; and SwanseaBay.

If the investigations over the next 12-18 months prove to be successful, commercial operations could start by 2014/15, and could lead to underground coal gasification producing between 3% and 5% of the UK’s total energy requirement by that date.

According to Clean Coal, this would be the first time that gasification of underground coal has featured in the UK energy market.

The investigations will include seismic and borehole surveys and the investigation areas range from 40 to 100sqkm and the depths of the coal range from 500 to 1000 metres below ground. The combined coal reserves for the five sites are estimated at around one billion tons. Clean Coal is expected to commence the site surveys in the first half of 2010.

Rohan Courtney, chairman of Clean Coal, said: “Recent developments in directional drilling technology and the growing need for new, secure and environmentally benign sources of energy means that underground coal gasification now merits serious investigation. This is an exciting and commercially viable development which can bring significant benefit to the UK economy.”

UCG is a method of converting deep seam coals into a combustible gas used for power generation, industrial heating, or the manufacture of hydrogen, syngas or diesel fuel.