Energy security & coal development

Badiul Alam

The power cut or load shedding has become the order of the day. All the national fertilizer factories have been shut down because of energy crisis. The power development Board (PDB) has been facing extreme difficulties to maintain its generation schedule due to gas shortage. The gas based industries specially the textile sector has been experiencing production shortage owing to acute energy crisis. The government has decided to cut power to the industries to maintain stable power supply to mosques and houses during the holy month of Ramadan. The Petrobangla has notified the PDB that it would not be able to make any commitment of new connections to any new power plant hence. These are a few tips about the country’s energy situation.
These tips are enough to raise concern about the country’s future energy security. Some 5-7 years back we debated about the export of energy from Bangladesh to our neighbour India. Now we are actively considering importing energy to provide minimum level of energy security. A dialogue has been opened with the Mayanmar government to ink a deal regarding the Import of gas from that country. Special Assistant to Chief Adviser Prof. Mohammed Tamim has spoken very strongly about linking Bangladesh with the Iran-Pakistan-India gas pipeline to ensure future energy security.

Not only Bangladesh, the entire South Asian Region has become energy hungry although there exists a huge potential of energy resources in this region. If the water resources of the Himalayan valley could be utilized, the South Asian region would have minimum 43000 additional power generation capacities. But this potential could not be harnessed because of the lack of understanding among the South Asian nations, which put the entire region in the category as energy hungry.

The lack of national understanding about harnessing energy sources in Bangladesh has been the major threat for our energy security. The country’s energy security has become vulnerable because of dependence on the single source of energy i.e. gas. Almost all the industrial energy are being met from gas and our gas resource has been depleting very fast, which is the major cause of the current energy crisis.

We have discovered gas reserve of around 21 trillion cubic feet (TCF) of which 15.40 TCF is proven. Till June 2007, around 7.08 TCF gas had been used and only 8.3 TCF gas could be utilized. Every year the gas demand has been increasing more than 6-7 per cent and with the present proven reserve Bangladesh could meet its energy demand from gas up to 2011. If no new gas field is found Bangladesh would have to1ook for other options to meet its energy demand after 2011.

Coal is one of the major alternative source to meet the energy demand. Bangladesh has so far discovered five-coal fields which are Barapukuria, Phulbari, Khalashpir, Jamalganj and Dighirpara. Among these coalfields, the Phulbari is the largest having a reserve of 572 million tonnes of coal. The estimated coal reserve in the Khalashpir is around 600mllllon tonnes, Jamalganj 1053 million tonnes, Barapukuria 300 million tonnesand Dighirpar200 milliontonnes. All these coal reserve would be equivalent to 50 TCF gas, which could ensure minimum 50 years of energy security.

Despite laving potential alternative energy source, the country is heading towards severe energy crisis within the next three to five years. One may ask why we are heading towards a energy crisis despite having the potential alternative source. The answer is very simple. Like other national issues, we are lacking national consensus on extracting coal, which limited the national endeavor of extracting coal only in the Barapukuria coal field. Till the day only half a million tonnes of coal could be extracted from Barapukuria.
There was no debate about extracting coal, but the debate has been going on the mode of extraction. Throughout the world two acceptable methods are followed to extract coal, one is the under ground mining and another is open cut mining. The selection of methods of extracting coal is total1y dependent on the geological condition and the economic viability of the mining.

If the depth of the coal reserve is more than three meters then underground mining option is considered, but from the economic point of view the underground mining is not very much lucrative. According to the mining experts, out of the total reserve around 15 per cent plus or minus coal could be extracted through the under ground mining. For example, Bangladesh could hardly extract less than 1oo million tonnes of coal from Barapukuria despite having a reserve of 300 million tonnes of coal because of the adoption of under ground mining system. On the other hand, the open Cut mining system would provide opportunity to extract all the available reserve.

We are debating what method should Bangladesh follow to extract its black diamond? This debate has developed over the extraction of coal from Phulbari coalfield. The government earlier signed agreement with the Asia Energy to develop coal from Phulbari. The Asia Energy opted for open cut mining as the coal reserve available at the depth of 50 to 200 meters. The coal experts have agreed that the open cut mining is the only viable option to develop Phulbari coal- field.
But there will be certain social and environmental problems if the open cut mining option is given go-ahead signal. The entire Phulbari region is arable area and land is suitable for the production rice. Around 600 hectares of land will come under the open cut mining system over a period of 30 years. The land will lose its original character after the open cut mining and it will take 10 to 15 years to restore the original character of land. The large-scale extraction of under ground water would be required to implement the under ground mining, which will create a danger of desertification. Several thousands of people will have to be rehabilitated in new places over a period of 35 years, as their homestead will come under the open cut mining system.
Every development project bears social and. environmental hazards but by applying proper mitigation approach the environmental concerns could be addressed. The Environment Impact Assessment (EIA) study has been made compulsory for all the development projects irrespective of its size. In respect of Phulbari coal field the EIA had been completed, which got the nod of the Directorate of Environment (DoE) although question was raised whether the DoE has enough technical manpower to examine the EIA study on Phulbari coalfield.

The major social concern in respect of Phulbari would be rehabilitation of several thousand people in the new places. According to the Asia Energy study over 40 thousand people will come under the relocation programme over a period of 3 years. But other sources claimed that one lakh people will have to be re-located. If the later’s version is accepted, every year less than 3000 thousand people or less than 600 families (5-member in each family) will have to be resettled. Is it a very big challenge? Of course not? It was argued that enough land will not be available for resettlement. It might be true to some extent because Bangladesh is a land of hunger. But this problem cannot be addressed through the development flats at the rural areas. In view of the shrinking arable land due to population pressure demand has been raised to adopt flat option in rural areas.

Another major concern is the desertification and shortage of water in the northern region because of the extraction of under ground water from Phulbari region. Yes, this is a big concern, but it has the solution. A portion of extracted under ground water could be used for drinking by applying proper treatment process. Another portion of extracted water would be injected to maintain the under ground water table after refilling the land hole. Such practice has been followed throughout the world in case of adoption of open cut mining method.

Another portion of extracted under ground water could be used to maintain the water channels and water bodies, which ultimately will benefit the agriculture and the industrial sector. Those who are opposing the open cut mining system very much know how to address the social and environmental concerns but still they are opposing the system. Question may be asked what will be the determining factors to adopt a particular method of extraction of coal? The answer is very simple. The economics of coalmine and geological condition will be the major determining factors for deciding the method of mining.

It has been stated that coal at Phulbari is available at a depth of 150 to 250 meters, which is covered by alluvium rocks. The coal mine expert opinion is that the coal at a depth of 150 to 250 meters covered by alluvium rock is suitable for open cut mining. From the point of economics open cut mining system is much beneficial, as it will give almost cent per cent recovery of coal. Badrul Imam, prof. Geological Department of Dhaka University and also member of the Natural Resources Protection Committee agreed that the open cut mining is suitable for extraction of coal if the same is situated at a depth of 150 to 200 meter. Another point of debate is the involvement of the Asia Energy for the development of the Phulbari coalfield. The national energy policy and other policies related to the foreign investment justify the Asia Energy involvement. It could be better if we could extract the coal by investing our own resources, which could give us opportunity to enjoy the total dividend, but now we have to share the dividend with a foreign company.

But facts remain that our national exchequer is not so healthy to afford millions of dollar investment. Besides, we have not enough technical manpower to develop a coalmine. Opponents of the open cut mining, however, put forward an absurd proposal in this regard. They suggested abandoning the mining until the development of national technical staff, according to them, which would take minimum 10 years. But they have to suggest how to address the energy problem at least for 10 years.
They have suggested developing an independent body to handle coal sector, which is a good proposal. The coal policy suggested developing a body, which would be called ‘Coal Bangla’. But the present regime is not in a position to finalise the coal policy. The matter is likely to be left for the next elected government. According to the agreement signed with the Asia Energy, the Phulbari coalfield development works can be started in 2006. If the process were allowed to go on by this time coal from Phulbari would be a reality. Not only coal, a coal fired power plant having 500-mw generation capacity could also start generation.

Source: The News Today, Bangladesh
Date: 04/09/2008