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Chandpur 115 MW (Doreen) HFO Power Plant

  • 4 days ago
  • 6 min read

Current Status: Operation

(Source: Sarabangla)


Chandpur 115 MW Furnace Oil Power Plant, also known as Doreen Chandpur Power Plant, is a reciprocating engine-based power plant situated in Icholi under Chandpur Sadar Upazila in Chandpur District of Bangladesh (Location: 23.2076, 90.6729). It is sponsored by Chandpur Power Generation Limited (CPGL), a subsidiary of Doreen Group, as a private Independent Power Producer (IPP) for 15 years. The sponsor declared its Commercial Operation Date (COD) on 11 February 2022 and, as per schedule, the power plant will retire on 10 February 2037.


Capacity

The installed and net capacity of Chandpur Furnace Oil Power Plant are 125 MW and 115 MW, respectively.


Context

Chandpur Power Generations Limited is owned by Doreen Power Generations and Systems Ltd. (DPGSL). DPGSL was incorporated in Bangladesh in 2007 and converted into a public limited company in 2011. DPGSL through its subsidiaries, has implemented three HFO-based power plants with a combined capacity of 225 MW, each commissioned with MAN Diesel and Turbo engines. Chandpur 115 MW (Doreen) HFO Power Plant is one of them. Each plant will supply electricity to the Bangladesh Power Development Board for 15 years (DPGSL, 2022).


Chandpur Power and BPDB signed the PPA on 18 January 2018. The power plant was supposed to begin commercial production on July 16, 2019, as per the agreement. But Doreen Power officials stated that the production could not begin on time because of a delay in the importation of the machinery required to set up the plant. However, the Commercial Operation Date (COD) was declared on 11 February 2022.  According to the terms of the power purchase agreement with the BPDB, the company has finished a 100 hour test run  (DS, 2022). According to the PPA, the power plant will retire on 10 February 2037 after 15 years of operation (TBS, 2022). 

The PPAs of three gas-based plants have expired; the 22 MW Tangail plant closed in 2023 and the 22 MW Feni plant in 2024, both due to PPA expiry with BPDB. The 22 MW Narsingdi plant halted operations on 20 December 2023 upon contract expiry. BREB subsequently declined to renew the Narsingdi PPA and formally cancelled the agreement in March 2025 (TDS, 2023; TBS, 2025). No revenue has been generated from these three gas plants since 2024, and they no longer appear on the company's balance sheet after impairment losses of Tk 917 million were recognized for the Tangail and Feni plants and Tk 410 million for the Narsingdi plant (TFE, 2026). Doreen Power operates three HFO-based subsidiary plants with a combined capacity of 225 MW:  Dhaka Southern Power (55 MW, COD June 2016), Dhaka Northern Power (55 MW, COD August 2016), and Chandpur Power (115 MW, COD February 2022), all under 15-year PPAs with BPDB (Doreenpower, 2024). Two of the three HFO plant contracts expire in 2031, and the third in 2037 (TFE, 2026).


Land Acquisition

The power plant occupies 9.4 acres of land beside the Dakatia River (Google Earth). The 350-tonne MAN engine was offloaded onto a barge, tugged ashore, and then transported to the project site in Chandpur using a Goldhofer Axle Line (Steady Lift), independently confirming the plant's riverside location (Steady Lift).


Finance

The total project cost was estimated to be $85 million of which Dhaka Bank Limited projected a loan of $65.00 million. Dhaka Bank Limited and Chandpur Power Generations Limited, a Doreen Group company, inked a term sheet on October 02, 2017  (DBL, 2023). Doreen Power funded the remaining (TBS, 2022). Dhaka Bank arranged an Euler Hermes-covered ECA loan of USD 40 million for Chandpur Power Generations Limited, with financing provided by a consortium of Commerzbank AG and AKA Ausfuhrkredit-Gesellschaft mbH of Germany. The total financing package of Tk 520 crore comprised Tk 340 crore from the ECA term loan and Tk 180 crore from a syndicated term loan, with Rupali Bank, SABINCO, and Sonali Bank as participating local financiers (DB, 2022; TDS, 2022).


Sponsors

The power plant was sponsored by Chandpur Power Generation Limited (CPGL), a subsidiary of Doreen Group, as a private Independent Power Producer (IPP) for 15 years. 


Contractors

German company MAN Energy Solutions bagged the order of supplying four MAN 18V51/60TS and two MAN 20V45/60 engines for the power plant (Bruke 2022). The Chandpur plant uses a combination of four MAN 18V51/60TS and two MAN 20V45/60 engines, feeding a total of 125 MW into the national grid (MAN ES, 2020). The MAN 20V45/60 is described by MAN Energy Solutions as "the most powerful four-stroke engine in the world," with an output of around 26 MW per engine and fuel utilization of over 50% (MPS, 2022).


Fuel Supply 

The power plant is run by imported furnace oil but the exporter country name has not found .


Power Generation

Chandpur Power Generation uses a combination of four MAN 18V51/60TS and two MAN 20V45/60 engines to generate 125 MW for the national grid, ensuring maximum fuel efficiency and a compact plant design with higher power density (Bruke 2022). In FY 2023-2024, the power plant generated 122,410,560 kWh at 39.6% PLF till October 2023.


Environment 

According to Section 12 of the Bangladesh Environment Protection Act 1995, Environmental Impact Assessment (EIA) is obligatory for any industry (MOLJPA 1995). Polluting industries, such as power plants, must undergo an Initial Environmental Examination (IEE) and EIA as directed in the Environmental Conservation Rules 2017 (MOEFCC 1997). Heavy fuel oil (HFO), also known as bunker fuel or residual fuel oil, is a significant contributor to global greenhouse gas emissions due to its high sulfur content, greenhouse gas emissions, and potential for oil spills. Burning HFO releases carbon dioxide, a major greenhouse gas, into the atmosphere, primarily due to its use in large industrial processes and marine transportation. It also produces sulfur dioxide, a major air pollutant, which can cause acid rain, respiratory problems, and damage to vegetation. HFO combustion also produces particulate matter, contributing to air pollution and adverse effects on health. It also generates nitrogen oxides, which contribute to smog formation and harm human health and the environment. HFO spills pose a risk to marine ecosystems, and incomplete combustion can produce black carbon, accelerating glacier melting and contributing to global warming.


Carbon Emission

Carbon emission from HFO based power plant is  0.81350 kg/kwh.


Criticism

To date, no EIA report has been found for this power plant. 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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