The aim of this study was to conduct a preliminary feasibility assessment of gasification of New Zealand (NZ) lignite and sub-bituminous coals, using a commercial simulation tool. Gasification of these coals was simulated in an integrated gasification combined cycle (IGCC) application and associated preliminary economics compared. A simple method of coal characterization was developed for simulation purposes. The carbon, hydrogen, and oxygen content of the coal was represented by a three component vapor solid system of carbon, methane, and water, the composition of which was derived from proximate analysis data on fixed carbon and volatile matter, and the gross calorific value, both on a dry, ash free basis. The gasification process was modeled using Gibb’s free energy minimization. Data from the U.S. Department of Energy’s Shell Gasifier base cases using Illinios No. 6 coal was used to verify both the gasifier and the IGCC flowsheet models. The H:C and O:C ratios of the NZ coals were adjusted until the simulated gasifier output composition and temperature matched the values with the base case. The IGCC power output and other key operating variables such as gas turbine inlet and exhaust temperatures were kept constant for study of comparative economics. The results indicated that 16% more lignite than sub-bituminous coal was required. This translated into the requirement of a larger gasifier and air separation unit, but smaller gas and steam turbines were required. The gasifier was the largest sole contributor (30%) to the estimated capital cost of the IGCC plant. The overall cost differential associated with the processing of lignite versus processing sub-bituminous coal was estimated to be of the order of NZ $0.8/tonne.