International conference: Coal termed vital to country’s energy security

Sulphur content in Thar coal at acceptable level.

KARACHI:

Speakers at an international conference on Saturday, while terming coal an important resource for energy security, called on the federal government to develop Thar coal reserves and switch from expensive furnace oil and gas to coal in power generation.

Domestic and international specialists, foreign investors, representatives of development finance institutions, diplomats and other stakeholders attended the coal conference, jointly organised by the Coal and Energy Department and the Sindh Board of Investment here on Saturday. Prime Minister Yousaf Raza Gilani also spoke at the end of the conference.

The Thar region has mammoth coal (lignite) reserves estimated at 175 billion tons, which can produce 100,000 megawatts of electricity for the next 300 years and can serve as a key to energy security and economic prosperity.

Speaking at the conference, Federal Water and Power Minister Naveed Qamar said the government was focusing on shifting power generation from expensive furnace oil and gas to coal.

The government has started work to convert 5,300-megawatt oil-fired power plants to coal-based plants. Initially, they would run on imported coal and then shift to technically compatible indigenous coal, he said.

He admitted that electricity needs could not be met through rental power and independent power producers, so the government was considering other options and exploring other resources. “Coal reserves of Thar can be a sustainable solution to the energy crisis,” he said.

Sindh Chief Minister Qaim Ali Shah said the country would have to seek alternative energy resources and coal was the best among all, adding early announcement of upfront tariff for power generation from Thar coal would attract investors.

Representatives of international investment firms and coal mining companies made presentations during the conference and described Thar coal as of good quality for production of electricity. They, however, said there were security problems, but international investors must come and get benefit of the incentives being offered by the government.

Removing misconceptions about Thar coal, Dr Marcos Leontidis, a mining expert from Greece, said the stripping ratio in Thar was around 6.6:1, which was much better than many lignite mines in the world, including Greece.

Dr Larry Thomas, coal expert from the United Kingdom, said sulphur content of 0.7% in Thar coal was acceptable which was lower than that found in many other lignite reserves being used in the world and its moisture level was same or even less than that found in most of the lignite mines across the world.

He said though Thar coal might not be exported to other countries, it can be transported for consumption in other parts of the province after drying.

Sindh Board of Investment Chairman Zubair Motiwala briefed the conference about investment potential of Thar coal, saying many international companies from China, South Korea, Germany, the Czech Republic, Australia, UK and Turkey had shown interest in investment in coal mining, power generation and infrastructure projects. He said the Sindh government was conducting international competitive bidding for blocks VIII, IX and X of Thar coalfield and also for blocks in Sonda and Badin for attracting companies to invest in coal mining and power generation.

Published in The Express Tribune, October 23^rd, 2011.