DOE clears MGen’s 1,273-MW coal plants

MANILA, Philippines — Pangilinan-led Meralco PowerGen Corp. (MGen) has secured confirmation from the Department of Energy (DOE) exempting its two coal-fired power plants from the existing coal moratorium.

On the sidelines of a BusinessWorld forum yesterday, MGen president and CEO Emmanuel Rubio said the DOE has authorized the construction of the 1,200-megawatt Atimonan plant in Quezon and the 73-MW Toledo project in Cebu.

The confirmation letter for the Atimonan plant was received earlier this month, while that of the Toledo facility was secured last November.

The Atimonan plant, however, is subject to several conditions, including a commitment to no longer use coal as fuel by 2050.

“We agree to that because I believe that by then, the regulations or market forces will actually make you consider that move anyway,” Rubio said.

Given this condition, he said MGen is looking at other replacement fuels to power the Atimonan plant.

This includes exploring the economic viability of using ammonia as a potential fuel source, which Rubio claimed as “cleaner” but “more expensive” than coal.

“Well, today, as we know, developed countries are looking at ammonia. They’re testing (and) co-firing with ammonia, particularly for coal… At the end of the day, (it’s) economic viability,” he said.

The Marcos administration is currently exploring the potential of ammonia, an inorganic chemical compound of nitrogen and hydrogen, as fuel for power generation given its zero-emission properties.

Further, MGen is now in talks with prospective engineering, procurement and construction contractors to proceed with the development of the Atimonan and Toledo facilities, Rubio said.

On the funding side, Rubio said several local banks are interested in financing the projects.

In a previous interview, Rubio said about $1.6 million is needed for each MW of the coal plants, which earlier secured environmental clearances from the Department of Environment and Natural Resources.

MGen, the power generation arm of Manila Electric Co., earlier sought confirmation from the DOE to proceed with the projects amid the implementation of a moratorium barring the processing of applications for new coal facilities.

The DOE, meanwhile, has clarified that the policy is not a “total ban,” as this does not cover existing and operational coal plants or those that are already committed.