ISLAMABAD: The authors of a study launched here on Thursday said switching to the coal-to-liquid (CTL) and coal-to-gas (CTG) options for fertilizer production, transportation fuels or electricity generation can not only be economically prohibitive but also come with great environmental costs.

The topic of the study was ‘Enviro-economic viability of coal liquefaction and gasification - a word of caution for Pakistan?’ The 25-page report said the high amount of water consumption was particularly troubling. Thar where most of Pakistan’s indigenous coal is located is a water-scarce region.

Diverting water flows towards CTL/CTG power plants may not only endanger the availability of water for the residents but may also result in diverting of agricultural water flows downstream of the region.

According to the report, Pakistan’s need to diversify its energy mix and reduce reliance on imported fuels was understood but unless the cost of locally producing coal from the Thar region became significantly lower, a move towards CTL/CTG could have serious economic implications for the country’s economy and the consumers as these costs would ultimately be passed on to them.

The study said in a world where countries were increasingly aiming for carbon neutrality, Pakistan’s dependence and lock-in of coal-based energy production would not only reverse the progress the nation had made in terms of environmental commitments but would also increase the country’s greenhouse gas emissions significantly. So much so, it may lose its status as a low-emitter in the global scheme of carbon emissions.

Pakistan first began exploring the idea of utilising Thar coal for conversion to gas with Dr Samar Mubarik Mand’s underground coal gasification project in Thar. Pakistan’s mantra for indigenisation of energy resources had now shifted and a new idea in the form of coal gasification and liquefaction (surface) emerged since then.

Ever since open-pit mining activities have commercially started in the Thar region and the mined coal was being fed into power plants situated within Thar coal blocks for power generation, the government has been exploring ideas of converting Thar coal into gas and diesel as an alternative fuel source to imported fuels which have been burdening the economy.

The study said the government had already reached out to China Ghazuba and China Coal in this regard while four leading fertilizers and power generation companies - Hubco, Engro, Fauji Fertilizer and Fatima Group - have been assigned the task to initiate a (surface) coal liquefaction and gasification project for the production of petroleum products.

As indicated above, Pakistan’s plan for coal to liquid/gas could have economic implications for three main sectors: fertilizer, transportation and power, as their dependence on imported fuels such as diesel and liquified natural gas was the greatest.

The study also said global experience of coal-to-liquid (CTL) and coal-to-gas (CTG) processes ought to be a warning that there was no bright future for such projects in Pakistan. It referred to the climate ambition summit in December 2020 where Prime Minister Imran Khan had stated: “Pakistan will not have any more power based on coal.”

Published in Dawn, May 8th, 2021