Bangladesh to Exploit 3 Billion-Ton Coal Reserve to Generate 20 Gigawatts of Power by 2030

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Researched by Industrial Info Resources India (Delhi, India)--In a bid to curb the burgeoning demand of natural gas and to reduce the country's dependence on gas for power generation, the government of Bangladesh has developed a plan to mine its untapped coal reserve, which is estimated to be about 3 billion tons, to generate electricity for the energy-starved nation. The country has set a target of 20,000 megawatts (MW) of electricity through coal-fired power units by 2030.

Bangladesh currently meets 70% of its power needs from the available gas resources in the country, which are depleting rapidly. To mitigate the energy crisis, the country has begun scouting for other energy sources, including coal and oil. "Natural gas being the primary source of power generation, Bangladesh has so far focused on exploration of new gas reserves, but now we are ready to utilize our coal reserves to generate power," said M. Humayun Kabir, Bangladesh's former ambassador to the U.S., while addressing a session at the World Energy Policy Summit in New Delhi on September 6-7, 2011.

Bangladesh currently faces an electricity shortage of 1,200 to 1,500 MW at peak hours, as only 4,600 to 4,300 MW of supplies are available, against a requirement of 5,800 MW. The country has power units aggregating to a capacity of 6,685 MW; however, only 5,480 MW are currently available, due to the de-rating of the age-old plants.

Bangladesh has seven coal fields with estimated reserves of 4 billion tons, but it currently produces only 2,000 tons from one field. Exploration of the others has been delayed due to litigation and environmental concerns. Out of the seven coal fields, the Barapukuria, Phulbari and Dighipara fields are estimated to have the highest recoverable reserves, pegged to the tune of 85%.

Bangladesh Power Development Board (BPDB), which monitors and regulates generation and distribution of electricity in the country, will hold a 30% stake in each plant, leaving the remaining 70-percent share for local and foreign private firms, investors and joint ventures.

The government of Bangladesh recently approved incorporation of an $8 billion company to develop coal-fired power plants, along with private companies, that would generate 20 GW of power by 2030. Apart from domestic supply, the company will import coal to meet fuel requirements for the proposed plants.

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