Mikayla,Ironfist wanted to debate it so I put forward a debate....

Mikayla,

Ironfist wanted to debate it so I put forward a debate. Do you not want people to know the risks of UCG? Do you not want people to know that the Managing Director was fired from Linc Energy at the request of CS Energy (the QLD Government owned Electricity Company)? Where is Kingaroy again?


Tanbianyi,

Third paragraph:

Shenhua group rolls back 1,000 megawatts coal-fired plants at Thar

SHAHNAWAZ AKHTER
KARACHI (May 15 2007): A Chinese state-run company, Shenhua Group Corporation has decided to roll back its plan for setting up 1,000 Megawatts (MW) coal-fired power plants worth $1 billion at Thar.

Sources told Business Recorder on Monday that the decision came at a meeting held in China recently attended by high-powered Pakistani delegation, including Pakistan's ambassador to China, in which the Chinese side withdrew its power generation at Thar coal-sites.

Sources said that the company was not happy over power tariff rates offered by the Government of Pakistan saying it was not enough to continue power generation. Security and domestic workload were also quoted as reasons that forced the company to surrender the plan, sources added.

The government had re-established contacts in October 2006 after 2002 with Shenhua group to start its work at Thar coal sites and also attracted by offering increased rates of purchase of power. Since it was made compulsory that tariff once agreed would not change for 30 years, so the company was insisting to increase the tariff, which would be viable enough to run the business.

The company had already made the decision for not pursuing the project because it had shifted all machinery to another China-run company, working at Sonda-Jherruk, Thatta, sources said. They said this decision would be a major set back for the country as it was facing serious power shortage. After re-establishing contacts with Shenhua it was hoped that about 1,000 MW would be added to the national power grid in three years.

Sources said the failure would harm the other ongoing Chinese projects particularly in coal mining and power generation sectors. Government officials in Sindh Mines and Mineral Department said that in the past that Shenhua company was engaged in China to facilitate electricity generation for the Olympic games, therefore, the company would start work after completion of the task.

Shenhua has vast experience in generating electricity from coal-fired power plants and completed detailed feasibility in collaboration with Geological Survey of Pakistan, sources said and added the other company, which was awarded contracts might not accomplish the work as per requirements.

Sources said that uniformed pricing formula for electricity purchase is needed to guarantee foreign investors for setting up coal-fired power plants in the country as was done for wind-based power generation. This was the only way the government could increase share of coal in country's energy mix to at least 19 percent by 2030 and 50 percent by 2050.

Sources said that several foreign and local companies had prepared feasibility reports in the past and confirmed availability of coal deposits but they were reluctant to start power generation due to unfair pricing formula for coal fired power generation.