Nicholas Soames: To ask the Secretary of State for Energy and Climate Change what steps he is taking to create a regulatory environment governing underground coal gasification. [177547]

Michael Fallon, Minister of State for Business and Energy: We are keen that Government plays its part in creating a regulatory environment which helps rather than hinders those with ambitions in the sector. With this in mind we will shortly launch a Working Group involving both DECC and the Coal Authority to look at the current licensing processes and in particular the interaction between underground coal gasification and coal bed methane. The group will consult with the relevant parties as part of its work.

Nicholas Soames: To ask the Secretary of State for Energy and Climate Change what recent discussions he has had with the Coal Authority on underground coal gasification. [177548]

Michael Fallon, Minister of State for Business and Energy: The Coal Authority is the freehold owner of the UK's coal resources and the licensing body for the exploitation of coal. We maintain a regular dialogue with it on the range of its activities including licensing. The Coal Authority has issued several offshore conditional licences to interested companies to assist in facilitating the development of UCG and full details of the Authority's processes for licensing in this area can be found on its website:

http://coal.decc.gov.uk/en/coal/cms/services/licensing/license_apps/lice...

Nicholas Soames: To ask the Secretary of State for Energy and Climate Change what assessment he has made of the potential of underground coal gasification in the UK; and if he will make a statement. [177549]

Michael Fallon, Minister of State for Business and Energy: The Government undertook a feasibility study of UCG in 2004 which concluded that, in conjunction with carbon capture and storage, UCG had the potential to contribute to the UK’s energy requirements. No further assessment has been undertaken by Government but we have held meetings with interested companies as they continue to look at how this technology might be developed.