Bangladesh-China Power Company Ltd (BCPCL), a power plant executing agency, has signed a deal with an Indonesian company to import coal for the 1320MW coal-fired power plant at Payra in Patuakhali, This is the country's first-ever deal on coal import to generate electricity. The signing ceremony between BCPCL and Indonesian PT Bayan Resources was held on Monday evening in the capital, Dhaka.
BCPCL is a joint venture between Bangladesh's North-West Power Generation Company Ltd (NWPGCL) and China's China National Machinery Import and Export Corporation (CMC). Under the 10-year deal, Bangladesh will buy 4 million tonnes of coal at a cost of $ 1.98 billion annually to run the 1320 MW power plant.
As per the contract, Indonesian firm will supply the required coal for the Unit-1 (660MW) of the power plant so that it can start power generation from December next. Welcoming the signing of the contract that took place at a city hotel, Prime Minister’s Energy Adviser, Dr Tawfiq-e-Elahi Chowdhury said, Bangladesh is resolving its power crisis through utilising the most modern technology.
He said this power plant will use the best coal so that environmental concerns are addressed in a better way.The PM’s adviser said, Bangladesh is responsible for a very insignificant percentage of carbon emission while the developed world for the most.He urged journalists to help the government reach accurate information about the technology being used in the coal-fired power plant.
Tawfiq-e-Elahi said, ultra-supercritical technology is being used in the Payra power plant and it will have no big impact on the environment.The function was also addressed by Indonesian Ambassador Rina Prihtyasmiarsi Soemarno, chief coordinator on the SDG Affairs of the Prime Minister’s Office, Abul Kalam Azad, and Power Secretary Dr Ahmad Kaikaus.
An official said, the first consignment of coal from the Indonesian firm is expected to reach Payra Port by late July or early August. The imported coal price would be tagged with the NewCastle international coal price index, with discount of up to 60 per cent depending on price movement. The rate of discount would increase, if coal price in the international market goes up, and would decrease if the price slides.
Initially, the BCPCL would import coal from Indonesia directly with half-loaded 'Supramax' coal-carrying cargo, having the volume of around 25,000 tonnes per cargo.After successful construction of transshipment facility in the Andaman, mother cargo would be able to carry coal for the power plant, he also said.
The first unit of the Payra power plant, having the capacity of 660 MW, would go into operation by December 2019, and the second unit, having the same capacity, by June 2020.
Some 180,000 tonnes of coal would be required every month to run each unit of the power plant. It would need around 12,000 tonnes of coal daily to generate electricity.Bangladesh has five coal mines, but extraction is limited to only one at Barapukuria in Dinajpur.Barapukuria Coal Mining Company Ltd (BCMCL) annually extracts around 1 million tonnes of coal, most of which is consumed by nearby Barapukuria thermal power plant.
According to its power system master plan, Bangladesh plans to produce around 50 percent of the country's overall electricity from coal.To implement the plan, the government will have to generate around 12,000 MW of power from coal by 2024, 20,000 MW by 2030 and 30,000 MW by 2041.Bangladesh now has only three coal-fired power plants which produce some 524 MW against the total installed capacity of 17,685 MW.
