The FFBL Power Co. Ltd. (FPCL) signed a Memorandum of Understanding with Sindh Engro Coal Mining Company (SECMC) on Wednesday for the use of Thar coal in the company’s power plant in Karachi. It was disclosed by the two companies in separate statements.
In Karachi, FPCL operates a 118-megawatt coal-fired power plant next to the Fauji Fertilizer Bin Qasim Ltd. (FFBL) Fertilizer Complex.
The MoU is a significant step forward in harnessing indigenous resources to achieve better energy prices while reducing the burden on foreign exchange, according to FPCL. This reflects the company’s commitment to economic development and strengthening the national economy through reduced reliance on imported energy.
The FPCL power plant provides up to 60 MWs of electricity to K-Electric, the company is in charge of supplying electricity to Karachi. According to the company’s website, the remaining electricity is supplied to the FFBL Fertilizer complex.
SECMC operates Pakistan’s first open-pit lignite coal mine in the Thar desert, with an annual capacity of 7.6 million tons. The company is a collaboration between the Sindh government, Engro Group and its partners, and China Machinery Engineering Corp (CMEC) under China-Pakistan Economic Corridor (CPEC) initiative. SECMC currently supplies coal to four mine-mouth power plants with a combined capacity of 1,320 MW.