• Gasification can produce cleaner energy than traditional coal-burning methods.winter coal image by Rick Smith from Fotolia.com
  
  Gasification is a significant component of many so-called "clean coal" projects. Instead of burning coal, which creates undesirable environmental effects, the gasification process uses steam or high-pressure air to break coal down into its chemical components. According to the U.S. Department of Energy, gasification offers "a versatile and clean way to convert coal into electricity, hydrogen and other valuable energy products." Gasification can also incorporate biomass, a sustainable natural resource, to produce carbon-neutral or carbon-negative energy.
  
  

Cooperative Agreements

• The U.S. Department of Energy (DOE) offers several funding options for gasification research and development projects. These can include cost-sharing cooperative agreements between the DOE and research laboratories, universities and industries, or cost-sharing contracts in which the government and industry collaborate on projects. Industrial partners retain limited rights to commercially viable data.
  
  

Grants

• The U.S Department of Agriculture (USDA) offers gasification funding through the Sun Grant Program. Grants fund projects that address "the bioenergy, biomass and gasification research priorities of USDA and DOE," enhance bioenergy and biomass research and work to increase national energy security. Proposals that incorporate gasification research projects must involve collaboration with land-grant universities and colleges with established gasification programs. As of November 2010, grants generally fund projects for up to four years, with maximum annual support of $421,200. Colleges, universities, research institutions, state agricultural stations, private organizations and individuals are eligible to apply.
  
  The DOE also offers funding for gasification through competitive grant programs. An example of DOE research and development funding is the Fossil Energy University Research Program. As of November 2010, 16 percent of the DOE's Office of Fossil Energy funding is distributed to universities and academic institutions. Examples include a 2010 grant awarded to the Illinois Institute of Technology to fund the development of a simulation model for the enhancement of production of hydrogen in coal gasification processes.
  
  

Loan Guarantees

• The DOE offers loan guarantee programs for innovative energy technology projects such as gasification. The goal of the program is to fund new and improved technologies that reduce or eliminate air pollution and greenhouse gases. Projects that use "advanced fossil energy technology including gasification, integrated gasification combined cycle, industrial gasification, petroleum coke gasification and coal to oil liquefaction projects" are eligible to benefit, according to Federal Grants Wire. Loaning organizations, such as corporations, companies, joint ventures or trusts, are eligible to apply.