Current Status: Operation
Source: Youth Group, 2022
Ashuganj 150 MW Furnace Oil Power Plant, also known as Midland Ashuganj IPP, is a reciprocating engine-based power plant situated in Char Chartola under Ashuganj Upazila in Brahmanbaria District of Bangladesh (Coordinates: 24.0289, 90.9878). It is sponsored by Midland East Power Limited (MEPL), a Joint Venture Company (JVC) of Youth Group and Viyellatex Group, as a private Independent Power Producer (IPP) for 15 years. The sponsor declared its Commercial Operation Date (COD) on 27 November 2018 and, according to schedule, it is to retire on 26 November 2033.
Capacity
The installed (gross) and derated (net) capacity of the power plant was 161.35 MW and 150 MW respectively.
Context
Midland East Power Plant is a subsidiary of Midland Power Company. After the completion of testing and pre-commissioning phases, the Midland East Power Plant's 150-megawatt project commenced its commercial activities on November 26, 2018, on a build, own, and operate (BOO) basis for a period of 15 years commencing on commercial operation date (COD). The power plant operated at an average load of 155.3 MW, surpassing the capacity stipulated in the original contract (Financial Express, 2017).
As per the company's statement, the project is committed to adhering to rigorous environmental standards. It employs cutting-edge technologies and exceptionally efficient machinery to establish an eco-friendly and highly productive power plant. B32:40V Genset(23 Sets) is used as the equipment for the power plant. The power plant is one of the fast-track power projects awarded by the government last year.
Since 2013, Midland Power, an independent power generator, has supplied 51 MW to the national grid. Many additional exporters of clothing have been making financial investments in the power generation industry (Mridha 2017).
Land Acquisition
According to Google Earth around 9.43 acres is the approximate area of this power plant situated in Brahmanbaria.
Finance
The plant, constructed on nine acres of land at Ashuganj in Brahmanbaria district, would cost $110 million or around 1215 crore BDT to be established for this power plant according to the proposal (Mridha 2017).
Sponsors
Midland East Power Limited (MEPL) was the sponsor to construct this power plant. As of October 31, 2018, the sponsor-directors held 63.23 percent of the company's equity, institutional investors 16.40 percent, and the general public 20.37 percent (Financial Express 2017). According to another source, 80% of the expenses were provided by the Eastern Bank within the local region, while Viyellatex Group and Shahjibazar Power contributed the remaining 20% (Mridha 2017).
Contractors
Following deliberations with four global corporations, Midland's leadership opted to finalize the agreement with a Chinese company CRRC Limited, as the company presented the most favorable pricing. CRRC will construct the plant, procure the machinery, and set them up. Rolls-Royce Power Systems (Germany) supplied Bergen Reciprocating Engines for the power plant (Rolls-Royce 2017). The UK-based Rolls-Royce and the Midland management signed a $52 million machinery supply agreement.
Fuel Supply
This power plant uses both Heavy fuel oil (HFO) and Light fuel oil (LFO) as fuel. Midland East Power Limited (MEPL) has taken the responsibility to supply the fuel.
Power Generation
Midland has entered into a 15-year contract with the Bangladeshi government, stipulating the supply of power generated by the plant to the national grid at a cost of 10.5 cents or 8.46 BDT per kilowatt hour when ($1 USD = 80.56 BDT) (Mridha 2017).
Environment
According to Section 12 of the Bangladesh Environment Protection Act 1995, Environmental Impact Assessment (EIA) is obligatory for any industry (MOLJPA 1995). The polluting industries, such as power plants, have to go through an Initial Environmental Examination (IEE) and EIA as directed in the Environmental Conservation Rules 2017 (MOEFCC 1997). But, to date, no IEE or EIA report has been conducted for the power plant. The combustion of HFO releases substantial amounts of CO2, a significant greenhouse gas that contributes to climate change and global warming. Spills or improper disposal of HFO and its by-products can contaminate water bodies. Accidental leaks or discharges into rivers, lakes, or oceans can harm aquatic life and disrupt ecosystems.
Criticism
The pollutants emitted from HFO power plants pose a potential health risk to nearby communities. Respiratory problems, cardiovascular diseases, and other health issues are common among individuals living in the vicinity due to exposure to pollutants like fine particulate matter and sulfur compounds.
References
Youth Group 2022. Midland East Power Limited. Youth Group: Undated (accessed on 15 June 2023)
Financial Express 2017. Midland East Power Plant commenced commercial operations. 27 November 2017
Mridha 2017. Midland Power signed a deal with a Chinese company to build a power plant. The Daily Star, 14 September 2017
Rolls-Royce 2017. Rolls-Royce to deliver power stations to Bangladesh with a contract value of 133 million Euro. Rolls-Royce Power Systems: 11 September 2017
MOEFCC 1997. The Environmental Conservation Rules. Ministry of Environment, Forest and Climate Change (MOEFCC): 27 August 1997.
MOLJPA 1995. Bangladesh Environment Conservation Act 1995. Legislative and Parliamentary Affairs Division, Ministry of Law, Justice and Parliamentary Affairs (MOLJPA): 16 February 1995.