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03.03.2020

Shanghai Electric achieves financial close for coal mine project of Thar Block-1 Integrated Coal Mine-Power Project in Pakistan

Shanghai Electric Group, the world’s leading manufacturer and supplier of power generation and industrial equipment, one-stop energy solution provider, announced that it had achieved the financial close for the Coal Mine Project out of the Thar Block-1 Integrated Coal Mine-Power Project. The Thar coalfield is the largest in Asia, which holds an estimated lignite resource exceeding 175 bn t, covers an area of over 9000 km2 in the Thar Desert in the southeastern part of Pakistan’s Sindh Province.

For Thar Block-1 Integrated Coal Mine-Power Project, the Coal Mine is planned with an annual production capacity of 7.8 mill. t and featuring two 660-MW coal-fired power plants, the project is capable of powering 4 million households in Pakistan with 1320 MW of indigenous, affordable and reliable electricity. Thar Block-1 Integrated Coal Mine-Power Project was developed under the umbrella of the China-Pakistan Economic Corridor (CPEC). It is part of an effort by the Government of Pakistan to improve energy security and reduce the average cost of power generation by moving from oil to coal. The project would energize the national grid and further help with savings on foreign exchange based on fuel costs.

The project is employing over 900 local workers at this moment and will employ more staff during its peak construction period. The project will also play an essential role in the social development of the region, with Shanghai Electric pledging to be an active and enthusiastic force in development efforts that help the local Thar community by improving education, health, infrastructure and the overall lifestyle of the region. Leveraging the project’s positive momentum, Shanghai Electric has already begun the construction of power plants in the Thar Coalfield. The Company will bring power plants of ultra-supercritical technology, which can run at higher net efficiency than the annual average net efficiency required by Pakistani government. Additionally, the plants will operate with a high acid gas removal rate, with low sulfur dioxide emissions to reduce environmental impact when it begins to generate electricity in 2022. (PR Newswire, February 29, 2020)