Coal is still the cheapest fuel in the world and affordable to the poor. — File Photo
KARACHI: Renowned scientist and member of the Planning Commission Dr Samar Mubarakmand has asked the government to declare coal a matter of national security and of national importance to encourage companies to invest in this sector.
Speaking at the concluding session of the Dawn Power Generation and Alternative Energy Sources Conference held at the Expo Centre on Tuesday, he said that Thar coal could play a pivotal role in overcoming the current energy crisis, both in long and short term.
Dr Mubarakmand, who is the head of the Thar coal gasification project, said that the current energy crisis was causing losses of Rs230 billion and 400,000 jobs every year. Current dependable power supply hovers around 14,000MW in summer though it drops in the winter. On the other hand power demand in 2030 would be more than 100,000MW, he added.
He claimed that the Thar Lignite Coal reserves, spread over 9,600 square-kilometres, were 175 billion tonnes and the generation potential was 100,000MW consuming 536 million tonnes a year.
He insisted that the development of the Thar coal was the only viable long-term solution for meeting energy demands of the country. “Only Thar Coal can provide guaranteed long-term energy security to Pakistan.”
While dealing with the installed capacity and dismal generation by many power plants in the country, he suggested that a way out of the present dismal scenario was to convert the existing power generation units from furnace oil to coal gas, which is produced from surface coal gasification plants.
He said indigenous or imported coal might be used, and added that these coal gas power plants based on integrated gasification combined cycle (IGCC) plants would generate electricity at a cost of about Rs5 per KWH.
A project had been envisaged in the Planning Commission for the conversion of underground coal in Tharparkar into coal gas without bringing coal out of the ground, he said, adding that capital investment at the Underground Coal Gasification (UCG) based power generation system was be about $1 per KWH for small plants of less than 100 MW and about $0.8 per KWH for larger plants of 500MW capacity.
He said that several thousand megawatts energy was being derived in Russia, Central Asian States, Europe, the United Kingdom, Canada, Australia, China and South Africa from UCG.
A presentation by Shahrukh Khan, the chief executive officer of the UK-based Oracle Coal Fields, was encouraging from investment point of view as it also dispelled some perceptions about the quality of Thar coal and the potential of this natural resource that could significantly help the country in cutting down import bill for oil.
Oracle has got concessions for open pit mining in Block VI of Thar Coalfield (66.1 square km). Mr Khan said that there was 1.4 billion tonne Lignite Measured Resource with 371Mt net attributable proven reserves in the open pit area. It has signed a memorandum of understanding with the Karachi Electric Supply Company and mine construction was expected to commence in 2012.
He said that the electricity demand in Pakistan was projected to outstrip supply for next 20 years and coal is to become increasingly important as an energy resource management.
Allaying doubts about the veracity of Tahr reserves, he said that in 2006 China NE Geological Survey Bureau (CNGB) drilled 35 boreholes, a total of 9,852 metres, of which 5,986 metres are cored, validated by independent consultants to take it to JORC resource. A further drilling programme is planned to provide design information for the final feasibility study.
In common with most lignite mines, Thar will need to be dewatered, he said, adding that boreholes will be drilled in advance of mining to lower the water table. A hydro-geological programme is planned to confirm water flow rates and provide base data for the design of the dewatering system. The water abstracted may be used for the planned power station, after suitable treatment.
Oracle’s proposal for the development of the power plant, which has been accepted by the KESC, is to commence with the installation of 300MW and for installation increases to be carried out in 300MW increments, he said, adding that this gives Oracle and KESC greater flexibility and simplifies the project from a project finance perspective.
Sindh Coal and Energy Development Board Secretary Aijaz Ali Khan said that in view of the power generation and energy demand, rich coal reserves of Thar not only promise energy independence for Pakistan but also offer lots of opportunities for prospective investors.
He said that the government’s vision was to generate at least 10,000 MW by 2020, which will save $79 billion of foreign exchange on account of expensive imported furnace oil substitution; benefit Rs8 trillion to economy due to reduction in power generation cost.
He said that investors may install lignite drying systems appropriate for inclusion in future pulverised coal or IGCC systems developed at the Thar coal field.
Chairman Sindh Board of Investment Zubair Motiwala said there was no escape from exploring alternative source of energy.
He also emphasised the need for energy conservation and importance of Thar Coal reserves in Pakistan’s future energy paradigm.