Attock Cement, K-Electric sign MoU

KARACHI: Attock Cement Limited and K-Electric have agreed to setup 40 megawatts coal-fired plant, enough to power the factory of cement manufacturer, and surplus electricity will be sold back to the grid.
“Attock Cement has signed Memorandum of Understanding (MoU) with K-Electric for the installation of 40 MW coal fired plant at its factory in Hub, Balochistan for its own utilization and sell surplus power to K-Electric at a mutually agreed term and condition,” the cement manufacturer said in a bourse filing on Thursday.
Fed up with constant electricity cuts and soaring energy prices, power-hungry businesses in Pakistan are exploring options to generate electricity from coal fired plant.
Attock Cement has already been engaged in discussing various aspects of its planned coal-fired project with suppliers of plant and machinery.
Cement manufactures, including Attock Cement, have already installed Waste Heat Recovery System and hence generating almost 25 percent of their electricity need. As one step ahead, industry is warming up to alternative energy sources through use of bio fuels and coal-fired power plants.
Attock Cement has already installed Alternate Fuel Plant at a total investment of Rs700 million and is now in the final stage of evaluating coal-fired power plant, for which talks are currently underway with different stakeholders.
Pakistan is ranked as the fifth largest exporter of cement, and the material is the country’s 10th major export item. To optimize power generation facilities at their plants, and keeping in view future opportunities in domestic and export markets, the cement industry has embarked upon an ambitious plan to construct Captive Power Plants that are based on imported coal.
Most factories have already switched over to coal as the basic fuel. The cement industry, therefore, is experienced coal user, has knowledge about coal supply resources, and the necessary infrastructure, like transportation, handling and storage facilities.
Currently, around 90 percent of the cement industry’s coal requirement is met through imports from Indonesia and South Africa.