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Ashuganj 150 MW (Midland East) HFO Power Plant

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Current Status: Operation

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 26 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). According to the latest information, the plant is equipped with 23 Bergen B32:40V16 generating sets. On the other hand, Based on Bergen Engines' project reference, all 23 gensets are designed to operate at 100% load, and the original supply contract included spare parts support for a period of 15 years (Power Technology, 2017).


Land Acquisition

The plant was constructed on 9 acres of land at Ashuganj in Brahmanbaria district (The Daily Star, 2017) .


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  2018).  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 CRRCLimited, as the company presented the most favorable pricing.  CRRC will construct the plant, procure the machinery, and set them up.  Rolls-Royce Power Systems (Norway) 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. Bergen Engines was acquired from Rolls-Royce Power Systems by the UK engineering group on 31 December 2021 and continues to operate as an independent company ((Bergine Engines, 2022). Furthermore, Bergen Engines' project reference indicates that the Ashuganj power plant has been fully commissioned and is operating successfully (Bergen Engines, 2025).


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 1997 (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. According to the environmental conservation rule 2023 the project falls in the “Red” indicating it as a potential harmful project for the environment (MOEFCC 2023).



References

 
 
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