In this paper the research on the technology of underground coal gasification (UCG) and convert it into clean energy safely and efficiently are introduced. The United Nations Coal Perspective Conference in 1979 pointed ‘development of UCG is the main research object for the world coal mining and the important approach to solve the technical and environmental issues existing in the traditional mining method fundamentally. Xinwen Mining Group Co., Ltd. carry out the industrial experimentation of UCG in Suncun Coal Mine . The design of the project was finished in September 1999, preparation and construction started in October and November respectively, it was ignited in March 31, 2000, air gas was produced in April 24 and water gas produced in June 9 and used to fuel the industrial boilers, supplied to 12,000 households in July 12. In November 2000, an experiment was made to generate electricity with gas. And now the gas generator in 400kw/h is running normally.