The finance ministry has promised release of Rs900 million for the Thar coal gasification project, which will initially produce 100 megawatts of electricity through conversion of coal into gas.
The project was discussed in a meeting held here on Thursday, chaired by Finance Minister Dr Abdul Hafeez Shaikh.
For the first phase of the coal gasification project, $105 million (Rs9 billion) had been sought for opening letters of credit for the import of machinery and equipment.
Member Science and Technology of the Planning Commission, Dr Samar Mubarakmand, said by the second week of September, he would be able to open the lid of the gasification project.
In April 2009, the federal government had approved two projects, “Creation of new processing facilities (for production of coal gas by underground coal gasification)” and “Creation of new processing facilities (for handling and purification of coal gas produced by underground coal gasification)” costing Rs494.45 million and Rs490.48 million respectively. The projects are now in full swing and the first 50MW gasifier to produce underground coal gas (UCG) has been completed.
However, for the power plant from Syngas (integrated gasification combined cycle), an amount of Rs8.9 billion including foreign exchange component of Rs5.9 billion is needed. This project was not allocated any funds in the last financial year and this year too only Rs5 million has been allocated against the demand of Rs5.7 billion. However, keeping in view the importance and financial viability of the project, the minister accepted the demand of Rs900 million for machinery and equipment.
Speaking in an interview in early June, Mubarakmand said the country would start generating electricity through coal gasification by next year. Under the project, coal would not be mined, rather plants would be installed on deposits to produce gas in a most sophisticated manner.
Thar coal reserves, estimated at 175 billion tons, have the potential to generate 5,000 megawatts of electricity for at least 800 years to meet the growing energy demand of the country, he added.
According to a report, Thar coal reserves are far higher than combined oil reserves of Saudi Arabia and Iran.
Published in The Express Tribune, July 22nd, 2011.
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@Naeem Siddiqui: Please add: 5) Go to work and get killed by a bomber.
Oh my God ! You guys have started tongue lashing the project ahead of its start. It's really sad to learn how much we lack the ability to appreciate a good move. We always resort to criticizing things, however better they may be for our country.
Our people are responsible for the image Pakistan has internationally. For positive results, we need to be positive rather than finding faults.
@ KV. The only advantage of geothermal over coal is that it's cleaner. But when you have anvirtually unlimited supply of coal (and have more pressing issues than the environment), why go for something that would cost much more? Besides, geothermal power projects would take years to materialize whereas if the government is sincere, the the coal project could start to have an impact within months.
useless investment... 70% of this will go to corrupt politicians and establishment... no development is possible in this country of ours... we have lost the race long back..
It is a pity that the ruling elite is wasting money on political gimmicks like Benazir Income Support Programme and Yellow Cab schemes but is not willing to invest in the Black Gold which holds the promise of ridding Pakistan of the perennial blackouts.