Bangladesh's Coal Imperative: Unlocking The Potential Of Phulbari

The country's installed (and soon-to-be commissioned) coalbased generation capacity now exceeds 8,000 megawatts (MW), requiring about 20 million tonnes (Mt) of Phulbari- or Barapukuria-quality coal annually-or a larger volume of imported, lowerquality coal.

- By Md. Badruzzaman

Bangladesh urgently needs coal to support its newly built large-scale coal-fired power generation capacity, representing an estimated investment of US$20-30 billion. The country's installed (and soon-to-be commissioned) coal-based generation capacity now exceeds 8,000 megawatts (MW), requiring about 20 million tonnes (Mt) of Phulbari- or Barapukuria-quality coal annually—or a larger volume of imported, lower-quality coal.

Currently, Bangladesh's coal supply is almost entirely import-dependent, as the country's only operating coal mine, Barapukuria, can supply only its own mine-mouth power plants (525 MW). Imported coal generally has a lower calorific value—between 4,500 and 5,000 kcal/kg (GAR)—compared to the country's high-quality domestic coal, which exceeds 6,600 kcal/kg (GAR). This means that generating the same amount of power from imported coal requires roughly 30% more coal than using locally sourced coal.

The financial and logistical challenges of coal imports are substantial. Bangladesh spends US$4-5 billion annually on imported coal for the power sector alone—funds that could otherwise be conserved through the development of domestic coal resources.

In this context, the Phulbari coal deposit could make a transformative contribution to Bangladesh's energy security. Its substantial open-pit mining reserves, large annual production capacity, consistent high quality, and reliability of supply throughout the operational life of large power plants make Phulbari a highly attractive and viable primary energy source for the country.

Phulbari has the Largest Mineable Reserve

The proposed Phulbari mine contains Bangladesh's largest open-pit mining reserve, estimated at 475 million tonnes (Mt). This estimate is conservative, and additional reserves could be identified as mining progresses and geological understanding improves.