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.
In December 2019, KPCL, the first independent power producer in the country, acquired 35 per cent ordinary shares of United Payra Power Plant.
Listed on the Dhaka Stock Exchange, KPCL's shares closed 0.65 per cent higher at Tk 46.60 yesterday.