See the New York Times blog post..
When developers approached Cook Inlet Region Inc., an energy and resource development company in Anchorage, Alaska, with the idea of using underground coal gasification to tap into a huge coal field nearby, officials thought the plan sounded too good to be true.
A well would be drilled into a coal seam deep underground. Oxygen or air would be injected to start a combustion process, and the resulting synthesis gas, or syngas, would be produced through a second well.
Carbon dioxide could be stripped out before burning the syngas to make electricity.
Read more.. http://greeninc.blogs.nytimes.com/2009/11/06/syngas-with-carbon-capture-at-cook-inlet/