United Payra Power Plant Ltd, an associate company of Khulna Power Company Ltd (KPCL), has started commercial operation of its 150-megawatt HFO-based electricity unit in Patuakhali.
KPCL owns a 35 per cent stake in the high-fuel oil-based power plant in Kholishkhali in the southern district.
Power generation began on January 18, said KPCL in a security filing yesterday.
HFO is a petroleum distillate, or hydrocarbon fuel, that is produced from crude oil.
The plant will supply electricity to the national grid for 15 years under a power purchase agreement with Bangladesh Power Development Board.
Listed on the Dhaka Stock Exchange, KPCL’s shares closed 0.65 per cent higher at Tk 46.60 yesterday.