Turkey signed a deal with Abu Dhabi National Energy Co (TAQA) last year, keen to make the most of its coal resources and lessen the country’s dependency on imported natural gas.
However, in August TAQA said it was delaying investment and Turkey subsequently began talks with other potential investors.
"There will be an investment of $10-12 billion in the Afsin-Elbistan field," Turkish Energy Minister Taner Yildiz told Platts.
“This will include use of the coalfields. We are in talks with China for a deal on this subject.”
The Afsin-Elbistan region holds 45% of Turkey's lignite reserves and the project includes the construction of an 8000 megawatt coal-fired plant.
Lignite is likely to be a key player in Turkey’s power generation as economic growth pushes energy demand.
