Energy Bangla

Primary fuel constrained Bangladesh Energy sector appears to be in a dilemma to choose between own coal and imported coal for its medium term energy security. The country has five discovered coal mines in the greater Dinajpoor and Rangpoor Region. The coal reserve is of superior quality – low sulfur, low ash and higher heating value bituminous coal. The shallow depth – (120-500meter,) thick seam muti- seam coal buried under soft silty overburden for favorable geological, rock mechanical nature of two mines Phulbari and Barapukuria favor open pit mining. Mining the coal of these two mines through applying off the shelf mining method and setting up mine mouth power plants can generate about 5000 MW power in 4-5 years. The extensive feasibility reports including environmental, social impacts management and mine water management studies are in government’s desk for Phulabri Mine since 2005. Line professionals, international experts, business communities are constantly urging for letting mining of own coal long since. Still a democratically elected government over its entire term from 2009 -2013 failed to initiate mining of own coal. Rather it wasted the entire term chasing the rainbow of imported fuel – coal and LNG. In its second successive term Government now intend to further delay mining own coal in the excuse of further study .Government is advancing its initiative of imported coal fired power generation. This write up will attempt to compare the risks and challenges of own coal and imported coal.
Present Challenges of Power Generation:
Bangladesh has to ensure sustainable energy security for maintaining its impressive GDP growth which has enabled it attain major MDG indices. The major challenge is arranging sustainable supply of primary fuel at affordable cost. The finite reserve of cheap natural gas is fast depleting .Over the last decade or so Bangladesh consumed its proven gas reserve for failure in discovering any major gas resource. The present exploration initiatives also do not suggest of any major new addition of natural gas resource. Government has rightly decided for diversifying fuel basket relieving depleting natural gas from new power generation. For a short period as contingency measure imported liquid fuel based power generation halted the alarming downward slide of energy security. True the nation had to pay through its nose for higher generation cost of power. Now government is desperately trying to secure cheaper fuel for power. Whether or not imported coal or LNG would be cheaper than imported liquid fuel is now a matter of judgment. It goes without saying that exploration and exploitation of own coal can be the cheapest and most affordable fuel option for Bangladesh. From the recent statements of Prime Minister and State Minister of Energy it now appears that government now prefers imported coal over local coal. Experts may question whether government has authentic comparative techno economic analytical studies for opting for imported coal. If imported coal cannot ensure power generation cheaper than imported liquid fuel then the entire exercise will be futile.
Imported Coal Based Power Generation.
Government has included Imported Coal Based Rampal Power Plant of BPDB (Bangladesh) –NTPC (India) in its priority project, Government has also signed agreement with local entrepreauner Orion Group for some medium capacity imported coal based power plants. Initiative for another large power plant at Matarbari, Cox’s Bazar. Some other imported coal based power project initiatives at Anowara and Cox’s Bazar are also maturing. The Rampal Power at Bagerhat in the proximity of the World Heritage Sundarban Mangrove forest has created controversy. The initiative for the plant at Matarbari has also been challenged at court. We do not have any issues regarding probable and possible emission impacts from coal fired power plants. Modern technology can almost attain near zero emissions if we are ready to pay for it .Our concerns are from lack of coal import facilities and the issues / challenges associated with it. In response to the concerns raised by experts’ government policy makers talk about importing higher quality coal, use of desulfurization plant, adoption of super critical pressure technology. Policy makers talk about transshipping coal from mother vessels in covered smaller vessels. Has anyone done any analysis of the costs involvement? Is there any strong regulatory authority in Bangladesh to monitor all these? What the generation cost of power from imported coal if all those remedies to emissions and environment impacts management policy makers are promising are taken into account? Global Economic Giants India, China and may be even Japan may go for massive coal hunt from international market soon. Can Bangladesh compete with them? Indonesian coal will become costlier soon for new regulations expected to come in force soon. Coal from Australia, South Africa and Mozambique must costlier. We have read about Bangladesh acquiring coal mines abroad. Before even thinking about it Bangladesh may talk with India about its experience of acquiring energy assets abroad.
We strongly believe that Bangladesh endeavors of relying on imported coal will soon prove uneconomic and waste of money, time and energy. Imported energy for Bangladesh can be a long term strategy and necessary infrastructure for this must be created before jumping the gun for it.
Why Not Own Coal?
What makes policy makers apprehensive of mining own coal? It is ridiculous to even think that Bangladesh can risk impacts on its world Heritage Sunabarban for an Indo Bangladesh JV imported coal based plant .But it hesitates in taking straight forward decision of Mining own coal and using it for mine mouth power generation . All those environmental, social impacts and water management issues can be credibly managed. World reported consultants have done extensive studies for Phulabri Mine .These reports are gathering dust in government’s desk for 9 years. Yet government without extensive techno economic feasibility studies have jumped their guns for imported coal fired plant. This writer had an opportunity for looking into an EIA of an imported coal fired plant. Ridiculously true that it appears a mere copy and paste of EIA of Phulbari Mine.
If Government wants it can engage the best international consultant in its opinion to further review all documents included in the Scheme of Development of Phulbari mines. Neither Bangladesh has any expertise nor does any NRB have any intellectual capability for evaluating the intricacies of coal mining methods and impacts management. Government in its previous term wasted time in water modeling with persons having no proven track records of mine water management. Some so called experts talked about Underground Gasification. Nowhere in the world has anyone even thought about underground coal gasification for thick seam high quality coal reserve that Bangladesh possess. It is only applicable for marginal coal mines where traditional mining method cannot be applied.
PM talked about more research and studies prior to mining own coal. Coal mining has worldwide well practiced mining methods and technology. Nature designates mining method for a particular mine .No policy dictate mining technology or method. Policy makers appear confused .
Bangladesh coal has low ash and low sulfur and is of higher heating value. Using this will cause much less environment concerns. Using the coal for mine mouth power generation will not require transportation. Power generation using own coal will be much cheaper.
Some persons talk about absence of coal policy .Experts question if absence of coal policy impedes local coal mining then under which policy government is signing imported coal based power plants one after another .Mines and Mineral Act and Regulations and Environmental Act are more than enough to go ahead with own coal mining .
Government may survey about land sales and purchase over the last few years around the mining areas. Vested quarters are reportedly purchasing lands and manipulating documents with ulterior motives of getting huge compensations when mining would ultimately commence. Any delay now in commencing mining will go to the benefits of this vested group and mining will get costlier.
Recommendation;
Government must adopt mining own coal and setting up mine mouth power generation as its topmost priority for securing the most affordable primary fuel supply. One mine Phulbari is almost ready for mining. If mining and mine mouth power generation are given go ahead by end 2014 about 5000MW power may be available by end 2018.Underground mining at Barapukuria must also stop after mining coal from the present phase. Future mining at Barapukuria must be done by open pit mining. Mining of Khalaspeer and Dighipara must not also be delayed .The mining should be done as soon as possible after reviewing available studies and conducting new studies. Study for Coal Bed Methane must start for Jamalganj Mine without delay.
Initiatives for imported coal based power generation will soon discover that that cost of generation if not more would be comparable with imported liquid fuel. For imported coal government has to set up enabling coal import facilities .Private sector will find the challenge insurmountable. We know that Bangladesh has to import coal and LNG eventually. But the country is not yet ready to absorb the impacts of higher cost fuel for longer duration. We have serious doubt when present government in its present term can see completion of any imported coal based power plant.