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Chattogram 108 MW (EPVCL) HFO Power Plant

  • 5 days ago
  • 5 min read

Current Status: Operation

Source: EPVL


The Chattogram 108 MW Furnace Oil Power Plant, also known as Patiya 108 MW Power Plant or Energypac Chittagong Power Plant, is situated in Kolagaon Naya Rasta Ghat under Patiya Upazila in the Chattogram District of Bangladesh (Location: 22.334642, 91.87643). It is sponsored by Energypac Power Venture Chittagong Limited (EPVCL), a joint venture company (JVC) of Energypac Power Venture Limited (EPVL) and Confidence Power Holdings Limited (CPHL), as a private Independent Power Producer (IPP) for 15 years. The sponsor declared its Commercial Operation Date (COD) on 14 January 2015 and, as per schedule, it will retire on 13 January 2030.


Capacity

The installed and net capacity of Chattogram Furnace Oil Power Plant is 112 MW and 108 MW respectively.


Context

The Power Development Board (PDB) signed a contract with private consortiums of Bangladesh Confidence Cement Ltd, UK-based Rurelec Plc and Bangladesh's Energy Pac Generation Ltd to set up an independent power plant on August 25, 2011 (Daily Star, 2011). The power plant was initially sponsored by Energypac Confidence Power Venture Chittagong Limited (ECPV Chittagong), a joint venture of Energypac Power Venture Limited (EPVL) and Confidence Power Holdings Limited (CPHL). EPVL is a subsidiary of Energypac Power Generation Limited (EPGL) which owns 90% of its share. On the other hand, CPHL is a subsidiary of Confidence Cement Limited (CCL) which used to own 50% of its share. But in 2017, EPGL acquired 40% of shares from CCL. As a result, ECPV Chittagong became Energypac Power Venture Chittagong Limited (EPVCL) owning 90% of the share and got the license from BERC on 20 September 2018 (BERC, 2018). The Implementation Agreement (IA) of the project was executed on August 25, 2011 and also the Power Purchase Agreement (PPA) for 108 MW net of EPV Chittagong Limited was signed on the same date for 15 years (EE, 2017; EPVCL Annual Report, 2020; EPVCL, 2023). 


Land Acquisition

Calculating from google earth the land area of this power plant is about 6.4 acres. 


Finance

The total budget of the power plant has not been disclosed but Infrastructure Development Company Limited (IDCOL) financed USD 30 million or BDT 330.88 crore (according to 14 October, 2023) and Industrial Development Leasing Company (IDLC) Finance Limited provided additional USD 33 million or BDT 363.97 crore (according to 14 October, 2023) for the project (IDCOL 2023). As of June 30, 2020, the Company had a contingent liability of BDT 1,37 crore related to the issuance of bank guarantees by multiple banks for contract performance and participation in different tenders. These banks include Prime Bank Ltd., Bank Asia Ltd., United Commercial Bank Ltd., Dhaka Bank Ltd., Jamuna Bank Ltd., Trust Bank Ltd.,  Brac Bank and HSBC (EPVCL Annual Report, 2020).


Sponsor

The power plant is sponsored by Energypac Power Venture Chittagong Limited (EPVCL), formerly called Energypac Confidence Power Ventures Chittagong Limited (ECPVCL). 81% of EPVCL is owned by Energypac Power Venture Limited (EPVL) and 10% by Energypac Power Generation Limited (EPGL). Further, EPVL is a subsidiary of EPGL. So, EPGL owns 90% of shares while Confidence Cement Limited (CCL) owns 10% of shares of EPVCL (EE, 2017). CCL is a subsidiary of the Confidence Group. Rurelec PLC is also working in partnership with ECPVCL / EPVCL as a sponsor (Rurelec, 2023). Energypac Power Venture Ltd. is the sole owner at 100%, while EPGL holding 90% and Confidence Cement Ltd. holds 10% (GEM Wiki).


Contractors

The EPC contractor of this powerplant is Energypac Power Generation Limited (EPGL). Bergen Engines (formerly Rolls-Royce Bergen Engines), Norway, has supplied 16 engines and Cummins Generator Technologies, Germany has supplied the generators for the project (ADB, 2015; IDCOL, 2023).


Fuel Supply

The project sponsors itself to import and supply necessary Heavy Fuel Oil (HFO) for the power plant (EPVL 2022). They also have contracts with Titas Gas, Titas Gas Transmission & Distribution Co. Ltd. and Sylhet Gas Fields (EPVCL Annual Report, 2020).


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 1997 (MOEFCC 1997). The power plant runs with HFO which is a carbon based fuel responsible for the emission of unhealthy Nox, Sox and carbon. The project is categorized as B under the Asian Development Bank's Safeguards Policy Statement, in the Red category according to Bangladesh's Department of Environment rules, and as a high-risk project by the Infrastructure Development Company Limited's Environmental and Social Safeguards Framework. An Initial Environmental Examination (IEE) Report has been prepared for the project by the Bangladesh Centre of Advanced Studies (BCAS) as the appointed 'Environmental Consultant' for ECPVCL. During the audit period from July 2014 to April 2015, an IDCOL official assessed the actual implementation of the environmental management plan and social safeguards by visiting the project site both during the construction and operation phases. The official also examined relevant documents and clearances. It was determined that the Approved IEE, Approved EIA, Site Clearance Certificate Award, EIA approval Award, and Environmental Clearance Certificate Award were fully complied with. In the Initial Environmental Examination (IEE), several activities with potential adverse environmental and occupational health and safety impacts were identified. While some mitigation measures from the Environmental Management Plan (EMP) were fully implemented, others were only partially fulfilled. This included issues such as noise from construction equipment operations and maintenance, dust during construction, and exhaust emissions from construction machinery and vehicles, including particulate matter, NOx, SO2, among others (ADB, 2015).  Transitioning from natural gas to renewable energy sources in the near future would represent a more environmentally responsible decision. 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).



Power Generation

According from the daily generation data from BPDB, in the year 2023-24 the power plant was active 39%. Power generation capacity 544,320,000 kWh but generated only 10,685,760 kWh with only 2% PLF. Bangladesh's power sector reserve margin reached 66.1% by December 2024 reflecting severe overcapacity. Data from July 2023 to May 2024 show that oil-fired plants contributed 10.9% of total power generation despite registering 32% of fuel costs (IEEFA, December 2024).


Carbon Emission

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


Reference

 
 
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