Both statements are correct.

Coal gasification is a process in which coal is partially oxidised with air, oxygen, steam or carbon dioxide to form a fuel gas. The hydrogen obtained from coal gasification can be used for various purposes such as making ammonia, powering a hydrogen economy.

Concerns with Coal Gasification:

• Coal gasification actually produces more carbon dioxide than a conventional coal-powered thermal power plant. According to CSE estimates, one unit of electricity generated by burning gasified coal generates 2.5 times more carbon dioxide than what would result when burning the coal directly.
• The syngas process converts a relatively high-quality energy source (coal) to a lower quality state (gas) and consumes a lot of energy in doing so. Thus, the efficiency of conversion is also low.

Source: Down To Earth