Linc Energy has reached the final phase in the development of its UCG technology prior to its commercial roll-out.

The milestone came when the company started producing syngas from its fifth gasifier at the Chinchilla demonstration facility, the first of its kind in the western world to operate multi-panel UCG gasifiers.

Linc chief executive officer Peter Bond said Gasifier 5 was producing gas within an hour of ignition, the fastest commissioning of any UCG operation in the world.

Gasifier 5, which is 132 metres deep and 820 metres long, is expected to produce up to 480,000 gigajoules of energy during its two-to-three-year life expectancy.

Mr Bond said the gasifier would give Linc Energy the most comprehensive UCG data set anywhere in the world

He said it would allow the company to perfect its technical evaluation methods, in turn building confidence in the economic and environmental performance of commercial UCG projects prior to start-up.

The Chinchilla demonstration facility, which employs 45 fulltime staff, is located south-east of Chinchilla on Kummerows Rd, about 60km west of Dalby.

"These latest achievements, combined with a long heritage of UCG operating experience, means Linc Energy is uniquely positioned with capabilities that are ready to be deployed in commercial operations for clean energy and fuels applications around the world," Mr Bond said.

"When you overlay that capability with the company's established global coal footprint, that's when things really get exciting."