Thar Energy Limited power station

From Global Energy Monitor
This article is part of the CoalSwarm coverage of Pakistan and coal.
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Thar Energy Limited (TEL) power station is a proposed coal plant in Pakistan.

It is also known as unit 3 of the Thar Block II power station (also known as Thar Engro).

Location

The map below shows the location of the plant near Thar Block-II mine in Sindh province.

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Background

Blocks in Thar coal field. Photo: Oracle Coalfields

The Thar Energy Limited power station and the ThalNova power station were formerly the second phase of the Thar Block II power station, but have become spun off into two separate projects, with separate ownership.

In October 2016, the National Electric Power Regulatory Authority (Nepra) accepted a generation license application from Thar Energy Limited (TEL) for a 330 MW mine-mount plant located in Thar Block II. The project was estimated at US$497.7 million. It was set to be financed mainly by debt raised from Chinese financial institutions, with the remainder raised from Pakistani banks.[1][2][3]

The project was permitted in May 2016.[4] The Private Power and Infrastructure Board issued a letter of support for the project in December 2016.[5]

In March 2017, Fauji Fertilizer Company (FFC), a subsidiary of the Fauji Foundation, took a 30% share in the project, and China Machinery Engineering Corporation (CMEC), the project's engineering, procurement, and constructor (EPC) contractor, took another 10%. The construction schedule was 40 months, with completion thus planned for 2020. Initial groundwork on the project had already begun.[6][7]

In March 2018, Hub Power Company Limited (Hubco), FFC, and CMEC signed the shareholders agreement.[8][9]

A June 5, 2018 updated list of "Upcoming IPPs" by the Ministry of Water & Power stated Thar Energy (unit 3 of Thar Block II) would be commissioned in March 2021, with financial close "in progress".[10] Then, December 2018 and April 2019 updated lists stated the unit was under construction.[11][12]

In November 2018, General Electric signed a 12-year equipment & maintenance services contract for the plant.[13]

In December 2018, Hubco signed a financing agreement with China Development Bank and Habib Bank for the plant's construction.[14]

On June 26, 2019, Thar Energy signed a land lease agreement with Sindh Engro Coal Mining Company for purchase of 244 acres of land for the coal plant project.[15]

A December 4, 2020 updated list of "Upcoming IPPs" by the Ministry of Water & Power stated Thar Energy (Thar Block-II, Sindh) would be commissioned in December 2021 and confirmed that financial close was achieved.[16]

Financing

In December 2019, a financing agreement was closed for the 330-MW project. US$390 million in loans were set to be provided by China Development Bank and Habib Bank. The financial advisor for foreign financing was China Development Bank; while the financial advisor for local financing was Habib Bank. US$130 million in equity was to be provided by Fauji Foundation, Hub Power, and China Machinery Engineering Corporation (CMEC).[17]

Coal source

In May 2019, the provincial Chief Minister directed Sindh Engro Coal Mining Company, the company operating the Thar Mine (Block II), to expand production in order to produce enough coal to feed the Thar Energy Limited and ThalNova power stations.[18]

Opposition

The Thar region's coal projects have been met with opposition, as described in detail for the Thar Block II power station. There have been street protests and visible mobilizations in reaction to plants, including lawsuits, public campaigns, street protests/marches, and sit-ins.

In May 2020, the Centre for Research on Energy and Clean Air (CREA) published a study titled, “Air Pollution, Health and Toxic Impacts of the Proposed Coal Mining and Power Cluster in Thar, Pakistan.” The report stated the proposed plants, including the 330 MW Thar Energy Limited power station, would constitute one of the largest air pollutant, mercury, and CO2 emissions hotspots in South Asia. The Alliance for Climate Justice and Clean Energy, a local Thar platform comprised of Pakistan’s leading environmentalists, helped launch the report.[19][20]

Project Details

  • Sponsor: Thar Energy Limited (TEL)
  • Parent company: Hub Power Company (Hubco) (60%), Fauji Foundation (30%), and China Machinery Engineering Corporation (10%)
  • Location: Thar Block-II, southeast of Singhara in Thatta district, Sindh province
  • Coordinates: 24.8062135, 70.4005007 (exact)
  • Status: Construction
  • Gross Capacity: 330 MW
  • Type: Circulating fluidized bed[13]
  • Projected in service: Dec. 2021
  • Coal Type: Lignite
  • Coal Source: Thar Mine (Block II)
  • Source of financing: US$390 million in debt from China Development Bank and Habib Bank; US$130 million in equity from Fauji Foundation, Hub Power, and China Machinery Engineering Corporation (CMEC)[17]

Articles and resources

References

  1. "Nepra admits CPEC power generation plants application," Daily Times, October 6, 2016
  2. "SEPA holds hearing on TNPTL 330 megawatts coal-based power plan," Business Recorder, October 7, 2016
  3. "Thar coal project achieves $2 billion financial close after govt guarantee," Dawn, April 12, 2016
  4. "Two local coal-based power projects of 660 MW approved," Pakistan Today, May 3, 2016
  5. "PPIB supports coal-based power plant under CPEC," Daily Times, December 14, 2016.
  6. "Hubco to divest 40pc shares in Thar Energy," Dawn, March 16, 2017.
  7. "Fauji Fertilizer and Hubco Join Hands for a 330MW Coal Power Plant in Thar," Pro Pakistani, March 15, 2017.
  8. "FFC, HUBCO sign agreement to set up 330 MW coal power plant," IEA, March 19, 2018
  9. "Analyst Briefing," Hub Power Company Limited, April 2, 2019
  10. "Upcoming IPPs," Private Power & Infrastructure Board, Ministry of Power, updated June 5, 2018
  11. "Upcoming IPPs," Private Power & Infrastructure Board, Ministry of Power, updated December 17, 2018
  12. "Upcoming IPPs," Private Power & Infrastructure Board, Ministry of Power, updated April 17, 2019
  13. 13.0 13.1 "GE signs agreements to supply equipment and 12-year maintenance services for the 330 MW Thar Energy Limited Power Plant in Pakistan," GE press release, November 7, 2018
  14. "Hubco signs financial deal for Thar Energy Limited in Beijing," Daily Times, December 22, 2018
  15. "Growth Aspirations," Hubco, accessed December 2019
  16. "Upcoming IPPs," Private Power & Infrastructure Board, Ministry of Power, updated December 4, 2020
  17. 17.0 17.1 "Preview of Thar Block-II Thar Energy Coal-Fired Plant (330MW) IPP," IJGlobal, accessed September 21, 2020
  18. "Hubco to set up two power projects in Thar," Express Tribune, May 7, 2019
  19. “China-backed coal projects in Thar herald dark environmental future,” Pakistan Forward, June 5, 2020
  20. “Air Pollution, Health and Toxic Impacts of the Proposed Coal Mining and Power Cluster in Thar, Pakistan,” Centre for Research on Energy and Clean Air, May 2020

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External resources