AboitizPower shifting baseload power

MANILA, Philippines — Apart from developing its massive renewable energy  pipeline, Aboitiz Power Corp. is shifting its baseload power from coal to gas, and is exploring carbon capture systems to reduce its carbon emissions and help the country shift to cleaner energy.

AboitizPower president and CEO Emmanuel Rubio said the company has started its energy transition with aggressive investments in renewable energy and this would be supported by plans to eventually shift the company’s baseload focus from coal to gas.

“We continue to explore pathways to decarbonization and potential joint development of LNG-to-power projects,” he said.

“Our LNG (liquefied natural gas)-to-power projects with JERA are in the early development phase, but it’s our intention to eventually shift our baseload focus to gas,” the company official said.

He was referring to Japan’s JERA Co. Inc. (JERA) entry in AboitizPower through an acquisition of a 27 percent stake in the power firm  last year.

Under the partnership, JERA and AboitizPower have identified potential areas for collaboration across multiple fronts, including joint development of LNG-to-power projects, the fuel sourcing and management of LNG, potential participation in aspects of plant operation and management (O&M), and exploration of the use of new generation technologies.

For its LNG push, Rubio said the company is also considering a 150-MW LNG power plant in Naga, Cebu to be delivered in 2026 and a possible 1,100-MW gas-fired power plant to serve the requirements of Manila Electric Co. (Meralco) in 2030.

“We’ve said that we will replace baseload, hopefully one in Visayas by 2026-2027 and for the CSP (competitive selection process) that will be delivered in the Power Supply Procurement Plan (PSPP) of Meralco by 2030 using 1,100- MW of gas fired plant,” Rubio said.

The company is also looking for ways to displace fossil fuel burning baseload power with zero emissions power generation technologies or carbon capture systems that are available.

Rubio said the company is in talks with a European company for a pilot carbon capture system in the country.

“We’re also looking for more realistic ways to reduce emissions through carbon capture systems. We’re in discussions with a European entity to consider putting up a model in the Philippines and replacing coal as fuel for existing boilers of our coal plants,” he said.

Last year, AboitizPower started rolling out its 10-year strategy to hit a 50:50 balance between its renewable and thermal portfolios by 2030.

It is investing P190 billion over the next decade for an additional 3,700 MW under its Cleanergy portfolio to meet the 50:50 balance in its capacity.

It aims to grow its total attributable net sellable capacity to 9,200 MW in the next 10 years, half of which or 4,600-MW will come from various renewable energy sources.

To date, AboitizPower needs to build around 3,700-MW of additional renewable energy capacity to meet its 4,600-MW goal.

“All in all over the next three years, we have about 721-MW of renewable energy projects under priority development. These are all part of our RE growth strategy over the next decade,” Rubio said.

The company is   constructing the 94-megawatt peak (MWp) Sinag Power Cayanga Project in Bugallon, Pangasinan.

“We are looking forward to the completion and commercial operations of our Cayanga solar project by the end of this year,” Rubio said.

“In the next few weeks, we will also be able to secure a notice to proceed for our 160-megawatt peak (MWp) photovoltaic (PV) Sinag Power Laoag project,” he said.

The project is expected to commercially operate by third quarter of 2023.

Apart from solar, AboitizPower is also expanding its geothermal capacity.

“We’re growing our geothermal by investing in Tiwi for the binary plant that will give an additional 15-MW and additional wells Philippine Geothermal Production Company Inc. (PGPC) is drilling to get to 50-MW incremental from the 12 wells initiated,” Rubio said.

In 2018, APRI signed a Geothermal Resources Supply and Services Agreement (GRSSA) with Sy-led Philippine Geothermal Production Company Inc. for the supply of steam and drilling of new production wells in the Tiwi and MakBan Geothermal Complex.

Under the GRSSA, PGPC will drill 12 new production wells over a six-year period to increase steam availability for the power plant facilities by about 20 percent. The agreement also ensures a more competitive fuel pricing in the long term.