In industrial chemistry, coal gasification is the process of producing syngas—a mixture consisting primarily of carbon monoxide (CO), hydrogen (H₂), carbon dioxide (CO₂), methane (CH₄), and water vapour (H₂O)—from coal and water, air and/or oxygen.

Historically, coal was gasified to produce coal gas, also known as "town gas". Coal gas is combustible and was used for heating and municipal lighting, before the advent of large-scale extraction of natural gas from oil wells.

In current practice, large-scale coal gasification installations are primarily for electricity generation (both in conventional thermal power stations and molten carbonate fuel cell power stations), or for production of chemical feedstocks. The hydrogen obtained from coal gasification can be used for various purposes such as making ammonia, powering a hydrogen economy, or upgrading fossil fuels.

Alternatively, coal-derived syngas can be converted into transportation fuels such as gasoline and diesel through additional treatment, or into methanol which itself can be used as transportation fuel or fuel additive, or which can be converted into gasoline.

Natural gas from coal gasification can be cooled until it liquifies for use as a fuel in the transport sector.