The Scottish Government has kicked the prospect of burning coal under the Firth of Forth into the long grass by postponing any decision until after the Holyrood election.
Ministers have put in place a moratorium on underground coal gasification being proposed by Cluff Natural Resources in addition to an existing freeze on fracking.
The Scottish Government will carry out a thorough and wide-ranging research process into the potential impacts of such onshore techniques.
Energy Minister Fergus Ewing said: “The public will understandably wish to study the outcome of the research process and thus the public consultation will not begin until the findings of the research process have been published.”
Cluff wants to invest £250 million to build the UK’s first deep offshore underground coal gasification (UCG) project in Kincardine.
It says the scheme would create hundreds of new jobs and secure the UK’s energy supply for several decades.
Opponents fear Fife is being used as a guinea pig for the process which involves drilling a 12-inch vertical borehole into a coal seam below the sea bed, flushing it with oxygen and igniting it with a burner.
The news of a moratorium was welcomed by campaigners and local MSP Claire Baker, who revealed a loophole in the temporary fracking ban, but the Conservatives accused the SNP of “ignoring scientific evidence”.
Prof Campbell Gemmell, the former chief executive of environmental agency Sepa, has been appointed to lead an independent examination of the issues and evidence surrounding UCG.
Scottish Tory energy spokesman Murdo Fraser said: “A recent report from Biggar Economics stated that underground coal had the potential to create a multi-billion pound industry in Scotland, supporting 5,000 jobs.
“The SNP need to start listening to the scientific evidence on this and on so many other issues.”
Labour politician Ms Baker said: “Whilst I welcome the inclusion of UCG into the moratorium the Scottish Government cannot be allowed to kick a final decision into the long grass.
“By delaying the consultation until the end of 2016 the SNP is trying to get through their party conference and the Scottish election without making a decision.”
WWF Scotland director Lang Banks said: “There is overwhelming public opinion in favour of cleaner forms of energy and a sufficient body of evidence why unconventional oil and gas are neither good for people or the planet. While this rightly puts a hold on underground coal gasification for now, we hope the final decision will be to rule it out completely.”