Gasification project pilots cleaner coal energy ...

A Queensland company is piloting technology which will generate power from coal without having to dig it up and with 25 per cent fewer emissions than a traditional black-coal power station.

Cougar Energy is developing an underground coal gasification (UCG) project 10km south of Kingaroy, in southern Queensland.

UCG is the process of extracting coal from the ground through its transformation into a combustible gas for power generation. It can also be used in the production of diesel, fertilisers or chemicals.

See - Brisbane Times - Gasification project pilots cleaner coal energy.

No water by-product with this one ...