Plans for an underground coal gasification (UCG) project in the Firth of Forth near Kincardine have been put on hold.
Cluff Natural Resources blamed “political uncertainty” for them delaying lodging a planning application to carry out test work on burning coal under the Firth of Forth.
The firm’s chief executive Algy Cluff said he did not know if the Scottish Government would support their plans in light of the current moratorium on fracking.
He added: “Work on a planning application will likely be postponed until after such time as the political situation is more certain.”
Falkirk East MSP Angus MacDonald welcomed the announcement.
He said: “This is a sensible decision by Cluff. There should be no dash for gas, either through UCG or fracking.
“A moratorium on UCG, in addition to the current Scottish Government moratorium on fracking, would allow for a full public health impact study and a full public consultation to be completed and I will continue to call for that.”