I.

PREAMBLE
Bangladesh faces formidable challenges in meeting her energy needs and assuring energy security for the near and long-term future. The nation needs to sustain a 7.8% economic growth to eradicate poverty and meet the economic and human development goals. The energy challenge is thus of fundamental importance to the economic growth imperatives of Bangladesh. The total installed capacity of all power plants in 2005-2006 was 5245 MW, while the generation was 23,703 MKWH, out of which the share of gas was 81.5%, hydro 4.3%, furnace oil 5.3%, diesel 4.07% and coal 4.74%. The nation has a per capita electricity consumption of about 167 kWh per year, probably one of the lowest in the world. The inventory of energy resources is not substantial and natural gas resources are fast depleting, in the absence of any major new discoveries in the recent past. The effects of price volatility, the sky-rocketing oil prices in the international market, the rising aspirations of people and above all the burgeoning population, have been the major drivers of power demand resulting in a yawning supply/demand gap. The critical issues of long-term energy prospects of Bangladesh hinge on security of energy supply, increased access to electricity, efficiency improvement, and updating and refurbishing of energy infrastructure, Recent discoveries of coal resources in northwest of Bangladesh have opened a window of opportunity for meeting the nations galloping energy demand. This study has been commissioned by UNDP-Bangladesh to address the energy security concerns in Bangladesh with the outlook for coal as a major alternative source of energy. Additionally, the environmental issues related to open-pit and underground coal mines vis--vis groundwater management need to be examined for facilitating coal mine development in the unique hydrogeological setting of coal deposits of Bangladesh. For the purposes of this study, we have sought to present an overview of the energy landscape vis--vis sustainable development, examined the geology of the coal deposits of Bangladesh, and the prospects of their optimum utilization, including the related issues of groundwater management. We have finally spelled out an agenda for actions.
Page 1

II. ENERGY LANDSCAPE OF BANGLADESH

The energy economy of Bangladesh presents a variegated landscape where primary commercial energy resources include natural gas, oil, coal, hydroelectricity and renewable energy. The resource base, however, is limited and the nation has been depending largely on natural gas, whose prospectivity is perceived to be high. Table-1 portrays the principal indicators of the energy sector up to 20052006. Table-1 Indicators Of The Energy Sector
Items A. Electricity Total Installed capacity (MW) Maximum Demand (MW) Generation (MKWH) Consumption (MKWH) Transmission lines in Kilo metre: Distribution lines in kilo metre (35KV & below) Electrification (No.): a) Thana b) Village c) Deep/Shallow & Low lift pumps B. Gas Production (MKWH) Consumption (MKWH) of which Electricity Fertilizer Industrial Commercial Tea garden Brick field Domestic Captive power C.N.G Total Consumption Total Consumption ('000') C. Petroleum ('000' M. Ton) Imports: (i) Crude Oil (ii) Refined oil (iii) Lube base oil Total Consumption 2000-01 4005 303 17021 11634 3738 2001-02 4230 3217 18221 12567 3750 2002-03 4680 3428 19179 13717 3859 2003-04 4680 3592 20820 15330 3919 2004-05 4995 3721 22006 16337 6758 2005-06 5245 3782 23703 20954 6843

176179 443 3292 20467 10573 4847 2505 1362 115 18 12 902 115 0 9876 1042

192140 443 3356 20687 11087 5266 2232 1514 120 21 15 1041 115 0 10324 1160

209932 443 3400 208812 11926 5274 2716 1182 128 21 15 1269 741 0 11346 1260

226232 443 3432 20928 12821 5646 2628 1313 136 23 . 1396 906 55 12106 1350

244104 443 3478 20993 13783 5976 2661 1463 137 23 0 1486 1072 103 12921 1476

253729 443 3495 21020 14921 6354 2523 1791 147 21 0 1607 1384 193 14020 0

1337 2069 30 3436 3403

1224 2072 15 3311 3315

1335 2220 2 3557 3399

1252 2236 6 3494 3657

1252 2262 7 3521 3768

1253 2381 17 3661 3782

Source: PDB, BOGMC, BPC. Note: BTU-British Thermal Unit. Cons:- Consumption.

Page 2

The generation of electricity and installed generating capacity of electricity by fuel types are presented in Tables 2 and 3 respectively.
Table-2 Generation of Electricity (Million KWH) By Type Of Fuel
Year Hydro Furnace oil Natural Gas Coal Total Thermal generation 10735 11139 12017 13039 13291 15682 17542 18341 20017 21138 21962 Total system generation (eastern & western zone) 11474 11858 12882 13872 14318 16653 18221 19178 20820 22006 23703

Diesel

1995-96 739 238 9994 503 1996-97 719 352 10021 466 1997-98 865 296 10896 825 1998-99 833 142 12278 619 1999-00 1027 405 12603 283 2000-01 971 924 14535 223 2001-02 680 820 16561 160 2002-03 837 992 17173 177 2003-04 803 1215 18531 271 2004-05 868 1305 19547 286 2005-06 934 1406 21055 308 Source: Bangladesh Power Development Board

Table-3 Installed Generating Capacity (MW) Of Electricity By Type Of Fuel

Year Hydro Steam turbine Furnace Natural oil Gas Coal Gas Turbine N.Gas Diesel Combined Cycle N.Gas Diesel Total Thermal installed capacity 2677 2677 2861 3071 3481 3775 4000 4450 4450 4765 Total installed generating capacity 2907 2907 3091 3301 3711 4005 4230 4680 4680 4995 5245

1995-96 230 170 1668 327 1996-97 230 170 1668 327 1997-98 230 170 1858 327 1998-99 230 170 2068 327 1999-00 230 170 2068 584 2000-01 230 170 2058 742 2001-02 230 170 2058 742 2002-03 230 170 2058 742 2003-04 230 170 2058 742 2004-05 230 170 2268 742 2005-06 230 170 2518 742 Note: m.w. - megawatt. Note: Coal is included from the year 2005-06 Source: Bangladesh Power Development Board

282 282 297 297 230 387 252 252 252 357 357

180 180 180 180 180 180 540 990 990 990 990

50 50 29 29 249 238 238 238 238 238 238

Page 3

The consumption of commercial energy by major sources is given in Table-4 Table-4

Consumption Of Commercial Energy By Major Sources
(Thousand tons of coal equivalent) Source 1999-00 Electricity Gas Petroleum Coal (not actual consumption) Total: 1406 11243 11461 50 24160 2000-01 1441 12660 12905 120 27126 Year 2001-02 1557 13235 13492 486 28770 2002-03 1699 14544 14826 175 31244 2003-04 1899 15519 15820 199 33437 2004-05 2024 16563 16884 57 35528

Notes: Includes intermediate consumption of energy Source: Compiled by BBS

The statistical data reflect the growing mismatch between demand and supply which can be ascribed to energy resource crunch and geriatric problems with power plants (of the 127 power plants, 39 are over 20 years old). The total recoverable reserves of natural gas are presented in Table-5 which demonstrate the urgent need for switching over to alternative fuels and massive investment in gas exploration.

Page 4

Table-5

Natural Gas Reserves And Production

Sl. No. Fields Discovery Year 1969 1981 1963 1989 1962 1990 1990 1960 1996 1996 1955 1962 1988 1997 1981 1977 1977 1969 1995 1998 Reserve Estimate
By Year

GIIP
PRV+PROB

Recoverable
PRV+PROB

Reserve volume as on Nov, 2005)

Volume in BCG

Cumulative Production 648.9 38.3 1,309.7 292.2 353.9 34.8 61.5 371.4 351.1 43.7 179.2 2468.7 21.0 27.1 52.3 6,253.8 0.0 0.0 0.0 0.0 0.0 0.0 6,253.8 25.8 21.1 46.9 6,300.7 6,558

Net Remaining Recoverable

Volume in BCF

1. Bakhrabad 2. Beanibazar 3. Habiganj 4. Jalalabad 5. Kailshtila 6. Meghna 7. Narshingdi 8. Rashidpur 9. Sangu 10. Saldanadi 11. Sylhet 12. Titas 13. Fenchuganj 14. Maulvibazar 15. Feni Sub Total - A 16. 17. 18. 19. 20. Begumganj Kutubdia Semutang Shahbazar Bibiyana Sub Total-B Sub TotalA+B

IKM IKM HCU OXY HCU IKM IKM HCU C/S Bapex PPL HCL PB Unocal N/B PB PB PB Bapex D&M

21. 22. 23. 24. 25.

Chattak 1959 N/B Kamta 1981 N/B Sub Total C Grand Total (A+B+C) in BCF Grand Total (A+B+C) in TCF

A. Under Production 1992 1498.6 1049.0 1992 243.1 170.2 2001 5139.0 3852.3 2000 1195.0 836.5 2001 2720.1 1903.3 1992 170.6 119.6 1992 307.2 215.1 2001 2002.0 1401.2 1997 1031.0 848.5 1996 165.8 116.1 1971 683.9 478.7 2001 7325.0 5127.5 1988 404.0 282.8 2000 448.9 359.6 2000 185.2 129.6 23519.4 16890.0 B. Non Production 1984 46.7 32.7 1985 65.0 45.5 1981 227.0 150.3 1996 664.3 465.6 2000 3144.5 2400.8 4147.5 3094.9 27666.9 19984.9 C. Production Suspended 2000 677.0 473.9 2000 71.8 50.3 748.8 524.2 28415.7 20,509.1 28.415 20,509

400.1 131.9 2,542.6 544.3 1,549.4 84.8 153.6 1029.8 497.4 72.4 299.5 2,658.8 261.8 332.5 77.3 10,636.2 32.7 45.5 150.3 465.6 2400.8 3094.9 13,731.1 448.1 29.2 477.3 14,208.3 13.952

C/S = Cairn/Shell N/B=Niko/Bapex Reserves Based on HCU/NPD Source: Petrobangla, Ministry of Power, Energy and Mineral resources

The discovery of coalfields in the northwest marks a major milestone in the evolution of sustainable energy development in Bangladesh. Fig-I collates the projections of neat peak load (MW) versus GDP growth rates upto 2025 (Nextant, 2006) and underscores the imperative of augmenting resource base through exploration efforts to find more gas and oil, diversifying with other fuel sources such as coal and by recovering a higher percentage of the in-place reserves.

Page 5

Figure-1

Page 6

A slew of measures vis--vis energy conservation and energy efficiency is clearly mandated which include inter alia the following Efficiency improvement use of CFLs; System load reduction through power factor improvement; Refurbishing/rehabilitation of power stations so that nameplate capacities could be restored Stimulating co-generation in industries Demand side load management Over this century and beyond, Bangladesh will have to strive strenuously to meet the growing demand for energy services resulting from population growth (projections indicate that the population could grow from 130 million in 2001 to 180 million in 2025) and the hoped-for improvement in the living standards of the people below the poverty line (over 49.8% of population live below the national povertylines whose needs seem so great today and whose children and grandchildren represent a growing percentage. Securing access to energy services that is not vulnerable to short and longterm disruption is one of the key milestones towards sustainable development. A diverse mix of energy sources can provide security to the energy sector of Bangladesh and coal will fit this bill admirably as an alternative fuel source. Sustainable development vis--vis non-renewable resource use, however, is an oxymoron and yet it represents a myopic view of resources endowment where a static life-time is often wrongly used. Geological availability could be enlarged through exploration making the fuel resource a stretchable continuum and sustainable. The estimated resources of 2.5 billion tonnes of coal in Bangladesh is equivalent to 65 trillion cft of gas which could assure energy security in the medium and long-term. More extensive exploration in northwest Bangladesh could augment the coal resource base significantly.

Page 7

III. GEOLOGICAL SETTING OF COAL RESOURCES OF BANGLADESH--AN OVERVIEW

Since 1959, five major coal deposits have been discovered in Bangladesh in the Northwest region (Fig-2). These include Jamalganj, Barapukuria, Khalashpir, Phulbari and Dighipara. Geologically, the entire territory of Bangldesh is occupied by the Bengal Basin, which in terms of plate tectonic theory forms a Rifted Passive Margin Basin. The Bengal Basin is gradually closing due to plate destruction in the subduction zone located beneath the Indo-Burma Ranges in western Burma (Salt et al, 1986). The five subsurface Gendwana basins are formed within the Pre-cambrian basement complex during the Permo-carboniferous time. The Gondwana basins are fault-bounded a symmetri type (half graben) basin formed on the basement complex. The stratigraphic segmentation of these coal basins are given in Tables-6, 7, 8 & 9 which are more or less analogous. The Gondwana formations in which the coal deposits occur have significant thicknesses as given in the summarised Table-10, while Table-11 gives the in-situ coal resources of Bangladesh. In general, the coal deposits of Bangladesh are characterised by very thick coal seams which offer major challenges in underground exploitation vis-vis resource recovery. The existence of highly charged aquifers of Upper and Lower Dupi Tila (Fig-3) surfaces intractable problems for coal exploitation and groundwater management.

Page 8

Figure-2

Page 9

Figure-3

Page 10

Table no.6

Jamalganj coal basin

Period
Recent to sub-recent

Formation
Alluvium

Lithology
Clay, silt, coarse, medium and fine sand, coarse, medium and fine gravel Coarse to fine gravel and coarse and Silt, fine sand, clay, quick sand(i) medium gravel, shaly clay sand-stone, shaly coal Shaly clay and sandstone Limestone shaly clay Sandstone, shaly clay, silt, shaly coal Medium to very coarse grained off-white, feld pathic sandstone frequently interbeded with microbracian conglomerates and occasional dark siltstone layers. Matrix is Kaolinitic and it disintegrates in contact with water. Consolidation increases with depth. Coal seams in a dominantly sandstone sequence

Hydrogeology

Pliocene Upper Oligocene to Miocene Eocene Eocene Paleocene to Eocene Lower Triassic

Dupi-Tila Jamalganj Formation (Surma Group Undiff) Kopili Sylhet Limestone Cherra

Unconfined Aquifer

Upper Gondwana

Upper or Lower Permian

Lower Gondwana (Raniganj coal measures)

Table no.7

Barapukuria coal basin

Period
Holocene Pleistocene Pliocene

Formation
Alluvium Barind clay Residum Upper Dupi Tila Lower Dupi Tila

Lithology
Silty clay Clay and sandy clay Sand stone, pebbly sandstone and clay / mudstone Sandstone, claystone and mudstone with silica and white clay Feldspathic sandstone, carbonaccous sandstone and shale, ferruginous sandstone, conglomerates, and coal beds. Diorite, granodiorite, quartzdiorite, granite, and diorite gneiss

Hydrogeology

Unconfined Aquifer

Permian

Gondwana

Precambrian

Basement complex

Page 11

Table no.8

Khalashpir coal basin

Period
Holocene Pleistocene Pliocene

Formation
Alluvium Barind clay Residum Dupi Tila Formation Surma Group

Lithology
Grey sand and silty clay Yellowish grey silt clay Grey to yellowish grey sandstone with uncommon mudstone Grey to dark grey mud-stone, sandstone and pebbly sandstone Felspathic sand, carbonaceous shale, siltstone, mudstone, coal and conglomerate Basement not seen

Hydrogeology
Aquifer Unconfined Aquifer

Miocene

Permian

Gondwana Group

Table no.9

Phulbari coal basin

Period
Quaternary Tertiary

Formation
Undifferentiated Madhupur Clay Upper Dupi Tila

Lithology
Alluvial associated with streams Clays, red-brown Interbedded sands and gravels, generally micaceous Mudstone and clays, weathered Intercalated quartz sand and silty clay Mudstone and sandstones, weathered Coal seams: Upper, main, lower 1 and lower 2 Mudstones and sandstones, weathered

Hydrogeology
Unconfined Aquifer Unconfined Aquifer

Lower Dupi Tila

Low permealbility/ aquitard/ confine bed Confined Aquifer Low permeabilityu/ Aquitard/ Confined Aquifer (relative to over and underlying materials) Low permeability/ aquitard Not characterized

Permian

Lower Dupi Tila sands Gondwana Group

Archean

Basement granite/ granodiorite

Page 12

AVAREGE THICKNESS OF THE COAL SEAMS:

Coal Basin Jamalganj coal Basin Barapukuria Khalashpir Phulbari coal Basin Dighipara Seam-I m 071 4.6 16.95 3.36 17.00 Seam-II m 2.41 8.2 9.93 10.59 34.00 Seam-III m 32.16 2.0 1.22 7.31 7.01 Seam-IV m 1.98 18 6.96 5.83 2.00 Seam-V m 1.83 4.1 2.71 4.83 1.37 Seam-VI m 3.10 36 2.67 4.66 SeamVII m 22.86 1.66 4.67 -

Table no. 10
SeamVIII m 1.33 11.20 -

Table-11
In-situ Geological Coal Resources of Bangladesh
Location/Field Year of Discovery Drilled Well 31 14 108 10 5 Depth (Meter) 118-509 257-483 150-240 640-1158 328-407 Proven Reserve (Million Tonnes) 303 143 572 1053 150 Proven+ Probable (Million Tonnes) 390 685 572 1053 600

Barapukuria Dinajpur 1985-87 Khalashpir Rangpur 1989-90 Phulbari Dinajpur 1997 Jamalgonj Joypurhat 1962 Dighipara Dinajpur 1994-95 Source: BCML, AEC, GSB.

The coal basins in northwest Bangladesh also can only be exploited in locales with some commonalities of issues: high population density, rich agricultural land, pristine environment and a near-moribund economy. We shall now examine the potential of exploitation of each of the coal basins.

III.1 JAMALGANJ COAL DEPOSIT

Following the discovery of a thick bituminous coal seam at Kuchma near Bogra in 1959, a UN-PAK Mineral Survey Project was initiated in 1961 with the aim to locate coal by deep drilling. Ten holes with a total meterage of 10,000m were drilled preceded by geophysical surveys. The discovery of seven coal seams in the Jamalganj area near the border of Nawgaon and Bogra districts was the outcome of the project. Feasibility study on the
Page 13

exploitation of the deposit was carried out by EPIDC (predecessor of BMEDC) and M/S Fried Krupp of West Germany, M/S Powell Duffryn Services of the UK and Robertson Research International amongst others were appointed as consultants who gave divergent views on the mining method, total resource estimate and cost of exploitation. The exploitation of Jamalganj coal resources opens up a challenge of many dimensions. Since conventional mining has thus far been ruled out on the grounds of costs, one could explore the possibility of extracting the coal bed methane, if there be any, or the heat content of coal using underground coal gasification (UCG). UCG is a method of converting un-worked coal into a combustible gas. The gas can be processed to remove its CO2 content, thereby providing a source of clean energy with minimal green house gas emissions. The basic UCG process involves drilling two wells into the coal, one for injection of the oxidants (water/air or water/oxygen mixtures) and another well some distance away to bring the product gas to the surface. The product gas is a combustible syngas containing hydrogen, carbon monoxide, and methane. While the principle is deceptively simple, control of the gasification process has been at the heart of UCG development over many years. High pressure break-up of the coal with water (hydro fracturing), electric linkage etc. have been used with varying degrees of success in both pilot and commercial scale. Currently, two different methods of UCG have evolved and are commercially available. The first is based on technology from the former Soviet Union and uses vertical wells and a method such as reverse combustion, to open up the internal pathways in the coal. The process has been tested recently (1999-2003) in the shallow high-ash coals at Chinchilla, Australia using air and water as the injected gases. The second method, tested in European and American coal seams, is to create dedicated inseam boreholes, using drilling and completion technology adapted from oil and gas production. It has a moveable injection point known as CRIP (controlled retraction injection point) and uses oxygen or enriched air for gasification.

Page 14

World-wide, UCG activities have stepped up considerably in the recent years. The UK has concluded an extensive review (1999-2004) of the potential of UCG as a method of exploiting its large resources of coal on land and offshore. CSIRO in Australia completed a major study of UCG in 2003 and a joint venture trial has been initiated, in India UCG development is led by the Oil & Natural Gas Company (ONGC) and Gas Authority of India (GAIL). South African utility Eskom has been researching the potential of UCG for its operations in Majuba coal deposit. UCG has synergies with conventional mining by being able to exploit coal reserves that would not be normally mined. It would be well worthwhile for BCSIR to conduct a pilot/demonstration scale project using UCG at Jamalganj coalfield.

III-2. BARAPUKURIA COAL DEPOSIT

Barapukuria coalfield was discovered by the Geological survey of Bangladesh (GSB) in 1985 in the drill hole GDH-38, which encountered a coal seam at a depth of 159m. The coal reserves estimated in Barapukuria is 303 million tonnes (Wardell Armstrong, 1991). In addition to this about 86 million tonnes is considered as inferred resources. Studies suggested that coal mining is technically as well as economically feasible and underground mining was selected. On the basis of consultants opinion, the Government of the Republic of Bangladesh decided to establish an underground coal mine at Barapukuria in 1994, at a production rate of 1 Mt/year. Barapukuria is facing serious problems from the very early stage of development. A water inrush occurred in 1996 during development of the central district. After a long period, with the help of heavy duty pumps, mining development work was resumed, but as a result the central district had to be sealed and abandoned in the area. During trial production in the 1st slice, coal face No 1110, sudden roof fall and heavy gas emission occurred and one coal face had to be sealed. Nevertheless they are producing coal from only one face at the rate of on average 3000 tonnes/day.
Page 15

Location, extent and accessibility Barapukuria Coalfield is situated within the Barapukuria village of Hamidpur Union Council under Parbatipur thana, Dinajpur district, at a distance of about 50 km southeast of Dinajpur town. The coalfield has an areal extent of about 5.25 sq. km; an extension of 1 to 1.5 sq. km area to the South face has been suggested (Wardell Armstrong, 1991). The coalfield contains 7 coal-bearing seams with a total thickness of 74.14m. Seam-VI has a

thickness varying from 29.4 to 41.00 m and 36.41 m on the average.

III.2.1 BARAPUKURIA COAL MINE

The first coal mine in Bangladesh, Barapukuria commenced coal production in September 2005. The mine development and construction including shaft sinking by freezing, was executed by CMC of China who, along with Xuzhou Coal Mine Group Corporation (XMC), signed a production, maintenance and management contract in June, 2005 for producing 4.75 million tonnes of coal within a period of 71 months. Despite many trials and tribulations, including sealing of a coal face 1110 with complete equipment due to spontaneous heating, problems of hot water, high temperature, the mine has been producing coal, albeit below capacity, and supplying coal to the 250 MW thermal power plant of Bangladesh Power Development Board (BPDB) at Barapukuria. During 2006-2007, a total of 0.388 Mt of coal was produced. The coal deposit, comprising seven seams, is overlain by Upper and Lower Dupi Tila aquifers. Only seam-VI (average thickness of 36m) is currently being mined by longwall mining in the top slice with a thickness of 2.8 to 3.2m. While multi-slice longwall, with wirenetting between the slices, had been conceptually suggested the mining of subsequent slices could be compounded by severe ground control problems (due to presence of unworked coal blocks/barrier in the upper slice) and overall ground movement leading to massive subsidence on the surface and excessive water inflow from the aquifer above. Even if the mine can exploit with difficulty 2 slices, the resource recovery may be less than 10%.
Page 16

One could envisage a partial extraction system below the first slice using either room and pillar system or the single entry retract longwall system which was attempted at Selby coalfield, UK in working below the waterbearing Bunter sandstone. In any event, this would nor permit of resource recovery greater than 10-12%. Under the circumstances, the feasibility of exploitation of the entire deposit by open pit method merits serious consideration, if not review. This would also allow of recovering coal reserves in seams-I, II, III, IV, and V besides uprating the scale of operation. The Barapukuria Coal Mine management team certainly deserves to be commended for their heroic efforts in maintaining coal production under severe geo-mining conditions by the present method. The overall sizeable loss of coal reserves implicit in this method should however call for a closer look at the earlier reports by Rheinbaun and CMPDI in 1991 who had recommended exploitation by open pit method where risks would be significantly lower, and production could be even 5-10 million tonnes/year. Such a paradigm shift in exploitation method, if implemented, would allow of Barapukuria Mine to add 5 to 10 Mt/year to the national energy balance from the year 2016 2018.

III-3. KHALASHPIR COAL DEPOSIT

The Khalashpir Coal Basin is situated at a distance of about 290 km north of Dhaka, 48 km south of Rangpur Town. The main coal basin area (Madankhali Union) has a population of over 20,000 with density of population of 767 per sq. km. In the Khalashpir coal basin, Geological Survey of Bangladesh had drilled four drill holes and Hosaf International Limited drilled fourteen more drill holes, to assess the coal resources, and conducted 2-D and 3-D seismic surveys. There are two aquifers in the Khalashpir sedimentary basin. One is in the Dupi Tila formation of the Pleistocene age and the other is Gondwana

Page 17

Group. The Dupi Tila aquifer is composed of coarse to fine sand and pebbly sandstone. Aquifers in the Gondwana sandstone and conglomerates below the coal zones are not prominent. The Dupi Tila formation is the major aquifer in the Khalashpir area. Top and bottom of this formation is bounded by the less permeable Madhupur clay and Surma Group respectively. Pumping test results of Dupi Tila Formation in Khalashpir Coalfield indicate a filtration coefficient/ permeability as 32.1042.20m/day, transmissivity at 49-569m2/day and water inflow rate as 644846m3/day/m. For the Surma Group, the results of pumping test show filtration coefficient/permeability as 0.02 m/day, transmissivity as 0.64- 1.63 m2/day and unit filtration rate as 0.51-0.63 m3/day/m. The pumping test results of Gondwana Group have shown filtration coefficient/permeability of 0.64-0.067 m/day, transmissivity 4.9-5.30 m2/day and unit filtration rate 0.711.53m3/day/m. Analyses of pumping test data indicate that permeability of Dupi Tila Formation is very high while the permeability of Surma and Gondwana Group is low. The low permeability of the Surma Group will prevent infiltration of Dupi Tila water to the coal-bearing zone. The open fractures/fault planes in the coalfield however may play a critical role for the penetration of Dupi Tila water in the coal bearing zone. Two-dimensional seismic survey was done in order to find out the boundary of coal deposit, basic structural shape and throw of the faults larger than 20 meters. Three-dimensional seismic survey was carried out in the area to have a clear picture of the faults. In terms of the quality of coal, average analytical results show that it has moisture content of 0.6 - 5%, fixed carbon 32-66%, volatile matter 6-29%, ash 7-50% and sulphur less than 1%. The coal is of bituminous variety with good coking properties. The maceral analyses of the coal show more than 70% vitrinite in 6 samples. Fusinite is rare in the samples and pyrite is present as veinlets or nodular pore fillings. Coal seam I & II has relatively high inertinite content with low volatile matter. The upper 6 meters of coal seam II contains about 100% inertinite which can be mined as a special cut for blending with high vitrinite coal to increase the coke strength.
Page 18

The total in-situ reserves of coal in 8 seams of the 7.5 square km surveyed area is 451.00 million tonnes. Table-12 shows the average thickness of the seams, in the coal deposit:

Table-12
Average Seam Thickness:
Coal Seam-I Seam Av. 16.95 Thickness, m Seam-II 9.93 Seam-III 1.22 Seam-IV 6.96 Seam-V 2.71 Seam-VI 26.7 Seam -VII 1.66 Seam -VIII 1.33

The measured reserves are 277 million tonnes and the Indicated reserves are 174 million tonnes. Of these, reserves in seam I, II and IV are considered to be preferred candidates for mining. The seismic survey shows that there is more coal in the NW side of the surveyed area. The reserves of coal seam I, II and IV could be taken up for mining in the first phase and the reserves in other seams may be accessed later in the life of the mine, if the mining conditions permit. The in situ mineable reserve base of seam, I, II and IV is 277 million tonnes. Considering the geological setting of the overlying strata above the coal measures and the thickness and depth of the different coal seams, exploitation by shaft is considered as suitable and selected as the mode of entry for the development of Khalashpir coal deposit. Two vertical shafts using freezing method are proposed to be sunk to develop the mine. For control of surface subsidence stowing may be necessary and mine planning has included provision for the use of some hydraulic stowing even though this may be of a limited extent only. For Khalashpir coal mining project, Environment Management Plan (EMP) embracing Environment Impact Assessment (EIA) of proposed mining activities and control measures are contemplated, and for subsidencedamaged land due to underground mining operations, the calendar of phased reclamation has been drawn up.

Page 19

Khalashpir coal deposit can be developed into an underground coal mine with an initial production capacity of 2 million tones per annum and ramped up to 4 million tonnes per year in about 5 years with additional investment in shaft, machinery, ventilation and drainage system. Financial analysis of the underground coal mine at Khalashpir has been undertaken and the project is considered as technically feasible and economically viable.

III-4. PHULBARI COAL DEPOSIT

Phulbari coal deposit in Dinajpur basin has resources aggregating to some 572 MT of high quality bituminous coal. Asia Energy Corporation (Bangladesh) has submitted to the Government of Bangladesh, a feasibility study and scheme of development for a 15 MT/year open-pit mine. The project proponents have received approval for environmental impact assessment and environmental clearance from the Government. The project however has encountered significant resistance from the community and interest groups and a lot of heat has been generated on the issue by civil society. The net outcome has been that the project continues to languish. The primary objections raised appear to centre on: 1. Impacts of dewatering on ground water resources in the environs of Phulbari due to drawdown of ground water in the locale affecting the existing hydro- geological regime; 2. Socio-economic impacts on the community, displacement of project-affected people; and especially the

3. Damage to and disruption of valuable agricultural land. The issues related to management of groundwater have been examined in depth by GHD Pty.Ltd of Australia and later by Dr. Len Drury of SMEC International who has posited that mine dewatering and depressurisation of large open cut mines have been successfully undertaken in many pits around the world for ensuring safe working condition and stability of pit slopes. Computer modelling indicated that some 80 to 100 dewatering tubewells/borewells will be required at any one time to cumulatively pump

Page 20

some 6000 litres/sec, part of which will be needed for recharge of the aquifer. One of the mitigation works planned to control the impact of mine dewatering activities in the Phulbari area is aquifer injection. This will involve injecting water in the Upper Dupi Tila aquifer at around 5km from the pit which will hydrologically isolate the impacts of dewatering within and outside the injection zone. Figure-4 shows the schematics of aquifer re-injection for groundwater management.

Figure-4

AppendixA describes the method of groundwater management in Neyveli lignite basin in India. The issue of groundwater drawdown has apparently a high severity affecting as it does groundwater resources available to Phulbari and surrounding village communities . From experiences in Rheinbraun and Neyveli, it should be possible to mitigate the potential impacts as described in the experiences at Neyveli Lignite basin. The issue of displacement, resettlement and rehabilitation of project affected people has been carefully addressed in Phulbari Project. The success of this, however, will be contingent upon timely land acquisition and managing the
Page 21

sensitivities implicit in all such emotive interfaces, including issues of fair compensation and resettlement entitlements, training and provision of jobs for locals amongst others and will certainly call for enormous support from the Government for facilitating the R&R plan being executed smoothly. In so far as disturbance to agricultural land is concerned, it needs to be reiterated that coal mining is necessarily a transitory land use. As the openpit is successively backfilled and reclaimed in a phased manner, the land will be returned, often with higher attributes. Phulbari project has opened up new vistas of economic development of the region, as the nations power hub in the northwest. Phulbari coal could provide an alternative, reliable, affordable energy source for powering the wheels of the nation and one could conceive of installation of 2000 MW of power plants in a phased manner and thus assure energy security for Bangladesh. Estimatedly, Phulbari Project could contribute to 1% annual increase in GDP of Bangladesh and on a conservative basis make available US$ 21.00 billion to the GDP over project life, besides some US$7.1 billion to government revenue through corporate tax, royalty and service charges. It would also upgrade significantly the Bangladesh Railway system, Mongla Port and a deep sea entry to Akram Point contributing overall to sustainable development of the nation. The project would yield some valuable coproducts like construction material, kaolin, high-grade silica sand and large quantity of potable water of high quality.

III-5. DIGHIPARA COAL DEPSIT

Dighipara coal deposit is situated in Northwestern part Bangladesh at a distance of about 300km north of Dhaka. The village Dighipara is 12 km from Bhaduria Bazar of Nawabjonj thana and 1 km from Dhalaedargah Bazar of Gabindaganj-Phulbari Highway. A railway Station Birampur of Dinajpur District is about 15 km away from Dighipara. The area is mainly plain and mostly cultivated land. The area lies between the latitudes N25o 18' 52.8" and, N25o 20' 01" and longitudes E89o05'05". Geologically,

Page 22

Dighipara is located in Rangpur Saddle (Rangpur Platform) Tectonic zone of Bangladesh. Dighipara coal field was discovered by the Geological survey of Bangladesh (GSB) in 1995 and the coal was found at a depth of 323m to 408m from the surface. Within the Dighipara coal basin, five bore-holes were drilled by GSB during 1995-2004 with extension in area of 1.25 sq.km of the basin. The maximum drilled depth in Gondwana formation/ basement rock was 526m. The coal deposits were encountered in all the five bore holes. Within the 323m to 408m depth 6 nos. of coal seams were found. The average thickness of 5/6 seams are 61.71 meters. Among them seam No.II is the thickest one, which is about 36 meters thick. It is expected that the proven reserve of coal within the area is about 1000 million tonnes (estimated by GSB) and probable reserve within an area of 5 sq.km is expected about 500 million tonnes.

Table-13
STRATIGRAPHIC SUCESSION OF THE AREA Age Recent Pleistocene Plio-Pleistocene Permian Permian Formation/Group Alluvium Madhupur Clay Dupitila Gondwana Basement Complex Av. Thickness (m) 2 28 1072 545 135 Remarks

Table-14
AVERAGE SEAM THICKNESS OF COAL SEAM AT DIGHIPARA
Coal Seam Average thickness (m) Seam-I (m) 17 Seam-II (m) 34 Seam-III (m) 7 Seam-IV (m) 2 Seam-V (m) 1.37 Seam-VI (m) -

From the chemical analysis of coal sample, it is revealed that the coal is of High volatile Bituminous type with low ash and sulfur content. This coal is
Page 23

suitable for almost all types of thermal conversion including generation of electricity, brick burning and other domestic fuel, which will release prevailing pressure on forest resources. A portion of the coal might be suitable for the steel industries.

Chemical composition of coal from representative samples 1) 2) 3) 4) 5) 6) 7) Sp. Gravity Moisture content% Ash content % Volatile matter % Fixed carbon % Sulfur % Heating Value (Btu/lb) 1.18 - 1.44 2.87 - 4.32 2.53 - 20.05 25.29 - 37.59 43.10 - 65.63 0.49 - 1.29 10,200 - 14,775

Dighipara coal deposit is amenable to exploitation by open-pit method, but this would call for more detailed drilling for understanding the geotechnical setting and establishing reserves.

Page 24

IV. AGENDA FOR ACTIONS

In the backdrop of the imperatives of energy security for Bangladesh, diversification will remain the fundamental starting principle with coal emerging as an alternative, reliable and affordable energy resource. Given what we can reasonably expect about the pace of change in the years to 2025, energy policy cannot be settled on a once for all basis; rather it must be flexible and responsive to changing circumstances. The roadmap for sustainable energy development has to give a purposive thrust on coal development and the priorities in the agenda for actions should include: Approval of National Coal Policy and sizable investment for exploration for coal in the northwest Bangladesh, to augment the resource base. Drilling should be supplemented by state of the art geophysical surveys and 3-D modeling. Approval for go ahead at Phulbari project removing all the stops. The Government has to initiate steps for speedy acquisition of land, launch advertisement advocacy for assuaging the sentiments of project affected people so that the development and execution of the project could be facilitated. Phulbari is the crown jewel in coal inventory of Bangladesh and its development would help transform the economy of the nation. Review and reconsideration of the mining strategy at Barapukuria coal mine where underground mining by multiple slice longwall from roof downwards is destined to lead to huge losses of coal reserves. The feasibility of change-over to open-out mining also needs to be studied in depth. Promote the development of coal deposits at Khalashpir and Dighipara, either in the private or joint sector. Appraisal of coal bed methane resources, at Jamalganj needs to be conducted on a priority basis. If CBM resources are not promising, a

Page 25

pilot plant trial / demonstration of underground coal gasification (UCG) at Jamalganj needs to be undertaken. Re-assessment of resources at all the coal deposits based on UNFC classification. Approval for a mining degree programme at BUET or RUET to bridge the critical gap in manpower for coal development. Simultaneously, an Industrial Training Institute (ITI) for meeting the need for supervisory manpower in coal mines may be set up in the northwest. Capacity building for sustainable coal development deserves high priority. An appropriate time-frame for the actions as above has to be fixed so that accelerated coal development in Bangladesh could be translated into a reality. Energy from coal is fundamental to the aspirational goals of higher quality of life and to the economic prospects and performance of the nation.

Page 26

V. CLOSURE
Unless Bangladesh strikes some rich gas deposits in the near future, sustainable energy development and economic growth could be in serious jeopardy. Coal discoveries in northwestern region offers a window of opportunity, if only these deposits can be developed in an accelerated manner and stave off the looming energy crisis. The way forward, however, is strewn with several road blocks of which the hydro-geological regime of the deposits (an endowment of nature!) and resistance from civil society figure prominently. The all-pervasive syndromes of NIMBY (Not in My Back Yard) and BANANA (Build Absolutely Nothing Anywhere Near Anyone) have to be dispelled and overcome, before sustainable coal development becomes possible. With access to world best practices in environmental technology for reducing the ecological footprint and supported by political will, the road blocks should not be insurmountable and coal could provide the much-needed energy security for the nation. Where coal cannot be physically extracted, the recovery of coal bed methane and underground coal gasification deserve to be considered as energy options. The agenda for actions outlined herein should be viewed as suggestions and not as policy prescriptions. This report does not contain any specific proposals for nuclear energy development. We cannot rule out the possibility that at some point in the future, nuclear energy will have to play a role in the nations energy mix. Likewise, renewables are likely to have a niche role too. Bangladesh needs a soundly based, enduring national energy policy where coal will have an undeniable role to play.

Page 27

VI. ACKNOWLEDGEMENTS
In the preparation of this report, we have received valuable inputs, enormous goodwill and support from many, including the doyens of the energy sector. Grateful acknowledgement is especially due to the following:

UNDP-Bangladesh
Shaila Khan, Assistant Country Director (Policy Support & Advocacy) M.Aminul Islam, Assistant Country Director (Environment & Sustainable Development) Mamunul H. Khan, Programme Analyst.

Bangladesh Oil, Gas and Mineral Corporation (Petrobangla)

Jalal Ahmed, Chairman Md. Maqbul-E-Elahi, Director (Mines & Minerals) Md. Abdul Aziz Khan, Managing Director, Barapukuria coal Mining Co Ltd.

Global Water Partnership, South Asia

Quamrul Islam Siddique, President, Bangladesh Water Partnership Secretariat.

Asia Energy Corporation (Bangladesh)

Gary Lye, Chief Executive Officer Mushfiqur Rahman, General Manager

Bets Consulting Ltd.

A.K.M Shamsuddin, and All participants at stakeholders meet on 30.4.2008.

Page 28

REFERENCES
Bakr, M.A., et al, 1996, Geology and Coal Deposit of Barapukuria Basin, Dinajpur Districts, Bangladesh. Records of Geological Survey of Bangladesh, vol.8, part-1, p-36. China National Machinery Import and Export Corporation (CMC), 1994. A supplementary Hydogeological Feasibility Study of Barapukuria Coal Basin, Dinajpur Bangladesh (Unpubl). Imam, B., 2005. Energy Resources of Bangladesh. University Grants Commission of Bangladesh, Dhaka, Bangladesh. Islam, M.S. 1993, Anatomy and Environment of deposition of the abnormally thick coal seam VI in the Barapukuria basin, Dinajpur, Bangladesh, Bangladesh Journal of Geology, vol.12, p.27-38 (Published in 1996). Matin Mondol, A. A proposal of open pit coal mine at Barapukuria coalfield, Dinajpur, Bangladesh, M.Sc. Thesis, University of Rajshahi, p.92 (Un published). Uddin, M.N. and Islam, M.S. 1992. Gondwana Basins and their Coal Resources in Bangladesh. Geology in South Asia-1, Proc. First south Asian Geological Congress Pakistan, p.224-230. Wardell Armstrong Ltd, 1991. Techno-economic Feasibility Study,

4Barapukuria Coal Project, Dinajpur, Bangladesh. Volume-I, Chapter-I. Report submitted to Ministry of Energy and Mineral Resources, Government of Peoples Republic of Bangladesh (Unpublished). Ghose, A. K., 1998, Sustainable Energy Development in India into the next millennium - Challenges for Geoscientists, Indian Journal of Geology, vol. 70, No.4, p-291-298.

Page 29

Ghose, A.K., 2001, Are Renewable Energies realistic alternatives to Fossil Fuel and Nuclear Power Generation for Asia? Proceedings. World Congress on Safety of Modern Technical Systems, Saarbrucken, TUV Saarland Foundation, p.235-245. Ghose, A.K., 2006, Energy Security for India - The Emerging Role for Coal, Proceedings. National Conference on Coal and Alternative Energy Resources, p.37-41. Mondal, Debasis 2007. Selection of Mining Method in the Khalashpir Coal Field, Rangpur, Bangladesh, M.Sc. Dissertation, Department of Geology & Mining, University of Rajshahi, p.130.

Page 30

LIST OF TABLES
1. 2. INDICATORS OF THE ENERGY SECTOR GENERATION OF ELECTRICITY (MILLION KWH) BY TYPE OF FUEL INSTALLED GENERATING CAPACITY (MW) OF ELECTRICITY BY TYPE OF FUEL CONSUMPTION OF COMMERCIAL ENERGY BY MAJOR SOURCES NATURAL GAS RESERVES AND PRODUCTION STRATIGRAPHIC SEQUENCE OF JAMALGANJ COAL BASIN STRATIGRAPHIC SEQUENCE OF BARAPUKURIA COAL BASIN STRATIGRAPHIC SEQUENCE OF KHALASHPIR COAL BASIN STRATIGRAPHIC SEQUENCE OF PHULBARI COAL BASIN

3.

4.

5. 6.

7.

8.

9.

10. AVERAGE THICKNESS OF THE COAL SEAMS OF BANGLADESH 11. IN-SITU GEOLOGICAL COAL RESOURCES OF BANGLADESH 12. AVERAGE SEAM THICKNESS OF KHALASHPIR COAL DEPOSIT 13. STRATIGRAPHIC SUCCESSION OF DIGHIPARA COAL DEPOSIT 14. AVERAGE SEAM THICKNESS OF COAL SEAM AT DIGHIPARA

Page 31

LIST OF FIGURES
Figure 1 NET PEAK LOAD MW VS.GDP GROWTH (NEXANT, JUNE 2006) EXISTING AND POSSIBLE COAL REGIONAL MAP OF BANGLADESH REGIONAL CONCEPTUAL GEOLOGICAL MODEL OF DUPI TILA AQUIFER SCHEMATIC OF AQUIFER INJECTION FOR MITIGATING GROUNDWATER DRAWDOWN

Figure 2

Figure 3

Figure 4

ANNEXURE-1
Ground Water Management at Neyveli Lignite Mine

Page 32