PWC said that a UCG industry producing equivalent to 10% of the current Queensland coal production could potentially contribute close to $500 million per year to the state and more than $160 million per year in royalties.

The report also said the technology, while not new, is potentially at the transition point to mainstream commercial implementation.

UCG could potentially increase global accessible coal reserves due to its ability to use coal resources that are otherwise considered uneconomic to mine, according to the report.

Australian companies Linc Energy, Cougar Energy and Carbon Energy are currently investigating the commercialisation of UCG technology.