Coal extraction from proven reserve unlikely within 2 yrs

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Nizam Ahmed Commercial extraction of the country's proven coal reserve is unlikely to start, at least within the next couple of years, despite the desperate national needs for use of this fossil fuel to generate electricity, experts said on Saturday. According to them, the government's target to generate 20,000 megawatt (mw) power by 2021 would be difficult to achieve without the use of coal, as the cost of petroleum oil as an alternative source of fuel for electricity generation, remains high. A parliamentary standing committee on the ministry of energy recently made its recommendations in favour of open-pit mining for extraction of coal. However, the authorities concerned are still waiting for a detailed report from a newly-formed expert committee. The 15-member expert committee, headed by former Petrobangla Chairman Mosharraf Hossain, is expected to submit its detailed report, by February next. However, a detailed study on various aspects including comparative problems and prospects of both open pit and underground mining, may take a longer time, experts said. Bangladesh has five coal fields in the northern region, comprising Barapukuria, Phulbari, Khalaspur, Dighipara and Jamalganj with a total estimated reserve of more than 3.0 billion tonnes, officials of the ministry of power, energy, and mineral resources said. The committee will consider the geological structure, depth, aquifer, financial and environmental impacts of the coalmines to recommend appropriate mining method for each of them, a senior energy ministry official said. The committee will also estimate the expected financial loss to be faced by the people around the coalmines and subsequent compensation to be given to them by the government. "To have details on various subjects and aspects, the committee may take more than the stipulated time," Prof. Mohammad Hussain Mansur, chairman of Petrobangla told the FE. Petrobangla is the arm of the ministry of power, energy and mineral resources for exploration of hydrocarbon and other mineral resources. "The authorities concerned will have to perform a huge task of removing and rehabilitating the affected people, even before the start of any mining operation," the Petrobangla chief said. "Simultaneously, the authorities will also need to set up coal-fired power plants so that the extracted coal can be utilised; otherwise, there may be accidental fire causing an extensive damage," Prof. Mansur said. "Coal stocks often cause disasters by catching fire," he added. He said preparations for coal mining, including rehabilitation of the affected people, setting up of power plants simultaneously, will be a tough task for an impoverished country like Bangladesh. "Starting and completing all these tasks may not be possible within the tenure of the present administration," Prof Mansur observed. Also some 'vested quarters' on the plea of protecting interests of the country, have been opposing any move by the authorities concerned to extract coal under open-pit mining, other experts said. But experts stated that underground mining was risky and the method yielded a lesser quantity of cost compared to that of the other one, though the former involved more costs. Under open pit mining, 90 per cent of coal can be extracted while under underground mining system, it can be done up to only 25 per cent at best, they said. However, the country needs coal to generate electricity urgently as its gas reserve is also depleting fast and it may be exhausted by 2015, if no further gas fields are discovered. The country now produces only 2.0 billion cubic feet (bcft) of gas against the demand for 2.5 bcft. The government's energy subsidy bill will soar up to Taka 90 billion in the current fiscal year 2011-12 for purchase of power from oil-fired rental and quick rental power plants, mostly in private sector, the concerned ministry officials said. The subsidy bill may keep on going up in the coming years as more diesel- and furnace oil-fired power plants are planned to commence operation, said the officials. Present power generation was around 5,000 mw against the country's aggregate demand at present for 7,000 mw. Twenty-seven rental and quick rental power plants have already been put into operation while about a dozen more are expected to start generation by the end of the year. Seven quick rental power plants with an aggregate generation capacity of 522mw electricity have started supplying electricity to the national grid and the remaining 20 with production capacity of 1,173mw are awaiting commercial operation. The tenure of rental and quick rental power plants differs from one to other as the government has awarded the contracts for the plants to produce electricity for three to 15 years. Meanwhile, the government has claimed to have added more than 2,000 mw of electricity since it assumed office in January 2009. It is hopeful of adding another 1,500 mw by next one year in its bid to provide electricity to everybody by 2021. Bangladesh will need billions of dollars, both in private and public sectors, to implement the mega power generation plan within the stipulated period, experts said. They said generation and transmission of each 100 mw of power would cost up to $1.5 billon. Experts said availability of primary fuel to the run the proposed power plants and mobilisation of the required fund will be the critical factors for materialising the plan.