Orion power station

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Orion power station is a power station in Matarbari, Maheshkhali Upazila, Cox's Bazar, Dhaka, Bangladesh with multiple units of varying statuses none of which are currently operating. It is also known as Orion Power Unit-2 Dhaka Limited power station, Dhaka power station, Munshiganj power station, Gazaria power station.

Location

Table 1: Project-level location details

Plant name	Location	Coordinates (WGS 84)
Orion power station	Matarbari, Maheshkhali Upazila, Cox's Bazar, Dhaka, Bangladesh	, (exact)

The map below shows the exact location of the power station.

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Unit-level coordinates (WGS 84):

• Unit 1: ,
• Unit 1: 23.61095, 90.59335

Project Details

Table 2: Unit-level details

Unit name	Status	Fuel(s)	Capacity (MW)	Technology	CHP	Start year	Retired year
Unit 1	pre-permit	coal - unknown	700	ultra-supercritical	–	2027	–
Unit 1	announced	liquefied natural gas	522	not found	not found	not found	–

CHP is an abbreviation for Combined Heat and Power. It is a technology that produces electricity and thermal energy at high efficiencies. Coal units track this information in the Captive Use section when known.

Table 3: Unit-level ownership and operator details

Unit name	Owner	Parent
Unit 1	Orion Power Unit-2 Dhaka Ltd [100.0%]	–
Unit 1	Orion Power Unit-2 Dhaka Limited	Orion Group Private Limited [100.0%]

Project-level coal details

• Coal source(s): Australia and Indonesia

Background

In April 2016, a consortium of companies signed a power purchase agreement with Bangladesh Power Development Board to build a 635 MW plant in Gazaria, Munshiganj district. The project was part of a plan to install two coal-fired power plants in the Dhaka and Chittagong regions, approved by the Cabinet Committee on Government Purchase on September 29, 2013. The consortium comprised the Orion Group, Fujian Zhongde Energy, and UAE-based Firstgen Energy. Under the agreement, the Power Development Board would purchase electricity for 25 years at Tk5.86 per kWh. According to Orion Group Chairman Mohammad Obaidul Karim, a contract was signed with General Electric for boiler, turbine, and generator, and an EPC contract was signed with Guangdong Electric Power Design Institute. The project also received terms of reference approval for its EIA from the Department of Environment. The plant would use ultra-supercritical combustion technology.

Power from the plant would be purchased by the Power Development Board at a levelised tariff of US$0.0837 or Tk 6.69 per kilowatt hour, though the tariff could decrease to between Tk 5.86 and Tk 6 "in the context of falling price of coal in the global market," according to an Orion Group official.

According to various Orion Pharma Limited Integrated Annual Reports, two plants were proposed in Gozaria, Munshiganj:

"Orion Power Dhaka Limited (OPDL) is the largest single unit coal based Ultra Super-Critical power plant in Bangladesh being implemented in Gozaria, Munshiganj under IPP basis with a net capacity of 630 MW (Gross 700 MW). Orion Group has adopted “Clean Coal Technology”, a collection of technologies including Flue Gas Desulphurization which has been developed to mitigate the environmental impacts and ensure zero emission to the atmosphere. Similar to OPDL, Orion Power Unit -2 Dhaka Limited is also one of the largest IPP based single unit coal based Ultra Super-Critical power plants being implemented in Gozaria, Munshiganj with a net capacity of 635 MW (Gross 700 MW)."

Only one Dhaka Orion unit appeared listed in the November 2018 government plan. The unit was planned for commissioning in 2022 under "High Case Studies" (and 2031 under "Low Case Studies").

Another unit was listed as the "Maowa, Munshiganj 522 MW Coal Fired Power Project (Orion)" and may have been referring to the Orion Power Dhaka Limited (OPDL) unit. Additional information about the Mawa power station is available at the Mawa wiki.

Other coal projects proposed in Munshiganj have included the Munshiganj power station and Gazaria power station (RPCL).

Orion Power Unit-2 Dhaka Limited

From at least 2019 to mid-2023, the Orion website stated: "Orion Power Dhaka-2 Ltd. (OPDL-2) is one of the largest single unit coal based Ultra Super-Critical power plant (IPP) being implemented at Gozaria, Munshiganj with a net capacity of 635 MW (Gross 700 MW). Advisory and Engineering consultancies obtained from world famous Ramboll, Denmark as Owner’s engineer, with the financial participation of KUKE and Sinosure. OPDL-2 has already started implementation of the project at site. It’s using technology and equipment e.g. Boiler, Turbine & Generator (BTG) from Europe. This power project is backed by one of the most renowned electronic products and machineries corporation General Electric (GE). The plant has been designed with state-of-the-art Clean Coal Technology to ensure efficient operations complying with all environmental regulations and confirming zero emission."

Permitting process (2016-2020)

As of October 2016, Orion Power was seeking environmental clearance for the 635 MW "Orion Power Unit 2 Dhaka Ltd" unit. Land for the project had been acquired in Gozaria and contracts had been signed with General Electric for equipment. According to the Orion Power website, the unit was set to be 700 MW gross (635 MW net). The company said it had "started implementation of the project at site."

The KUKE website listed a project titled "Engineering works and supply of equipment for Orion Power Unit-2 Coal based Thermal Power Plant in Dhaka, Bangladesh" with various pre-permitting materials it allegedly made public on September 20, 2019 (KUKE JSC is based in Poland and describes itself as a group of "experts in trade insurance and trade finance"):

• esia_volume_1_executive_summary.pdf
• esia_volume_2_intro_to_land_use_part_1.pdf
• esia_volume_2_intro_to_land_use_part_2.pdf
• esia_volume_3.pdf
• esia_volume_4_esmp_and_categorization.pdf
• socio-economic_environment_study.pdf

Based on these materials, AECOM completed an Environmental Impact Assessment for "Orion Power Unit-2 Dhaka Limited" in January 2018. At the time of the study, the project site was reportedly being developed by fill material (i.e., river bed sand) up to 2 meters "to raise the site elevation prior to commencement of project construction activities."

According to the 2018 EIA, the IEL Consortium and Associate Limited of Orion group established the 100 MW Meghna Ghat Heavy Fuel Oil (HFO) power plant about 5 km Northeast of the proposed site. Two additional thermal power plants were also in close proximity: a 450 MW gas-fired combined cycle power plant owned by AES Meghnaghhat Limited and a dual fuel 337 MW (net) power plant being developed by Summit Meghnaghat Power Company Limited (SMPCL). Four major cement plants were also located in the area.

As of December 2021, development at the proposed EIA site based on Planet satellite imagery from 2016 to 2021 was unclear.

The Orion Pharma Limited Integrated Annual Report for 2020-21 (released November 29, 2021) and for 2021-22 (released November 12, 2022) still referenced two units or plants: "The 630 MW Orion Power Dhaka Ltd. and the 635 MW Orion Power Unit -2 Dhaka Ltd. are two of the largest IPP based single unit coal based Ultra Super-Critical power plants being implemented in Munshiganj." Under Mr. Salman Obaidul Karim's profile, it noted: "He helped the Group win some of the largest contracts in its history, [including for] 1 Coal Fired Power generation Project of 635 MW (Under Construction)."

Potential cancellation (2020)

On November 19, 2020, The Daily Star reported that Bangladesh's power, energy and mineral resources ministry had finalized an energy plan that cancelled all coal plants except five under construction. The Orion power station would likely be formally cancelled as a result. However, this did not appear confirmed when the Bangladesh State Minister for Power, Energy, and Mineral Resources announced other coal plant cancellations in June 2021.

Location reconsideration & delay to 2026

According to the Bangladesh Working Group on External Debt (BWGED), a flexible civil society forum of progressive activists and organizations from all over Bangladesh, in February 2022, the original expected commissioning date of the power plant was extended from June 2023 to December 2026. In addition, based on the progress report of BPDB (February 13, 2022), the Power Division recommended shifting the location of the power plant from Gazaria (Munshiganj) to alternative sites in Matarbari or other places in Maheshkhali, Cox’s Bazar.

Resources from the BWGED noted that the Bangladesh Power Development Board's January 2023 Power Sector Progress Report still noted the coal plant and a commissioning date of December 20, 2026. This aligned with the December 2026 date in the 2021-22 BPDB Annual Report (PDF page 44) as well.

In May 2023, the BPDB monthly progress report stated that a decision had been made to identify an alternative site for the power station at Matarbari instead of Gazaria.

2023 EIA & CPGCBL land

In April 2023, a new EIA report was prepared for Orion Power Unit-2 Dhaka Ltd to build a 635 MW coal-fired power plant, which was to be located at Matarbari, Maheshkhalt, Cox's Bazar. Regarding the relocation of the project, the EIA included the following statement:

"Previously the power plant was planned to set up in Gazaria, Munshiganj. BPDB has suggested to shift the location to more suitable location at Matarbari. The proposed power plant will be set up by OPDL-2 on 225 acres land owned by Coal Power Generation Company Bangladesh Limited (CPGCBL) to ensure the best utilization of this land as well as most reliable operation of this project."

Additional delays

The November 2023 Bangladesh Power Development Board (BPDB) monthly progress report indicated that the power station's expected start date had shifted to December 2027.

Financing

According to an October 2020 article, Orion Group was seeking a $906.17 million (Tk 7,684.32 crore) loan from the foreign-exchange (forex) reserve to set up the Orion Power Unit-2 Dhaka Ltd power station. Orion reportedly proposed to shore up only 20% of the US$1.1 billion (Tk 9,653.88 crore) project from its own sources, hoping the remaining 80% would come from the forex reserve, according to Rupali Bank documents in July 2020.

According to a November 2021 article, Orion Power Unit-2 Dhaka Limited, Agrani Bank, and Janata Bank signed "a Syndication Project Loan Facility Agreement" on November 1, 2021. The two banks agreed to provide Tk 7,497 crore in debt financing, just less than the amount being sought by Orion, and equivalent to approximately US$870 million at that time.

In January 2022, a media source reported that Orion Group is going to secure $712 million in foreign loans for Orion Power Dhaka-2 Ltd, with long-term loans from Cargill Financial Services International Inc in the US, Siraj Holding LLC in Dubai, and the State Bank of India in Dubai. $400 million will come from Siraj Holding, $183 million from Cargill Financial Services, and the remaining $129 million from the State Bank of India in Dubai. The interest rate of the foreign loans is below 5 per cent and the tenor of the loans will be 10 years. Apart from the $712 million in foreign funding, $171 million will come from Agrani and Janata.

Moheshkhali Matarbari Integrated Infrastructure Development Initiative (MIDI)

The April 2023 EIA referenced a government master plan for development in Matarbari and Moheshkhali Islands through different implementing agencies, with finance from JICA under the project “Moheshkhali Matarbari Integrated Infrastructure Development Initiative” (MIDI). According to the MIDI, there would be "road and rail network, power plant (Coal, LNG and solar), deep seaport, LNG terminal, 5 economic zones, SPM with double pipeline project." The proposed coal project was proposed North of the Matarbari Port:

2021 Gas plans

In October 2021, the Daily Sun reported the following:

"In June 2021, the government scrapped (...) Mawa 522 MW coal-fired power plant (...) owned by Orion Group. Then the government decided to convert [Orion Power Dhaka Ltd (OPDL)'s] 522MW Gazaria proposed coal-fired power plant [] to clean fuel RLNG or other renewable energy, officials said. OPDL submitted a proposal to BPDB about the “substitute” location for implementing the RLNG-based power plant, sources said. In the proposal, the OPDL said it will implement the plant with GE equipment and is interested to sign a Gas Supply Agreement with state-owned GTCL. The proposal said it may also implement the project with its own facility of Floating Storage and Re-gasification Unit (FSRU) subject to approval. On October 10, 2021, the BPDB forwarded the proposal to the Power Division for allocating the substitute location at Moheskhali for Orion Power Plant. Power Plant will need around 30 acres of land at Moheskhali, officials said. On July 11, 2021, the Bay of Bengal Power Company Ltd decided to set up RLNG-based power plants replacing coal power plants, according to official sources. The government already decided not to implement any coal-fired plants at Maheskhali."

It was unclear if the article was just referring to the cancelled 522 to 660 MW Mawa power station or also referencing the Orion power station.

Articles and Resources

Additional data

To access additional data, including interactive maps of the power stations, downloadable datases, and summary data, please visit the Global Coal Plant Tracker and the Global Oil and Gas Plant Tracker on the Global Energy Monitor website.