Abstract: Underground coal gasification (UCG) is an important way for the uilization of abandoned coal resources and also a new way for generating hydrogen.Th e water-gas from the two-stage underground gasification is the most economic source of hydrogen currently, in which the content of hydrogen reaches over 70% .After t he removal of CO2, the combustible gases account about 95%.CO2 in the gas can be separated and stored in underground combustion apace area, or used in chemical industry synthesization, coal bed gas and oil production increase. Finally, according to the problems existed in UCG field, the author put forward relative suggestions.