MGEN kicks off coal expansion

MANILA, Philippines — Pangilinan-led Meralco PowerGen Corp. (MGEN) is gearing up for the construction of its two planned coal-fired facilities totaling 1,273 megawatts (MW) in Cebu and Quezon.

MGEN president and CEO Emmanuel Rubio said Chinese companies are set to lead the engineering, procurement and construction (EPC) of the 1,200-MW Atimonan plant in Quezon and the 73-MW Toledo project in Cebu.

Rubio said the EPC contractor for the Toledo project has been identified, with construction targeted for completion by October 2028.

Upon completion, the plant’s generation output will be sold to MGEN RES, the company’s retail electricity supply arm.

The contractor for the Atimonan facility, meanwhile, has yet to be finalized, as the company is still reviewing the offers from three bidders, he noted.

MGEN, the power generation arm of utility giant Manila Electric Co., has secured confirmation from the Department of Energy (DOE) that the two projects are exempt from the existing coal ban.

While the moratorium bars the processing of new coal facilities, the DOE has clarified that the policy is not an outright ban as it does not cover projects that are already committed.

As part of its commitment to the government, Rubio said MGEN is exploring alternative fuels to power the Atimonan plant by 2050, including assessing the viability of ammonia.

“The condition is that by 2050, the plant should be able to fire an alternative fuel. We accepted that. Whether we shut down or consider a new fuel is something that we have already considered in our investment,” he said.

“Now, whether ammonia can be viable by then is another question,” Rubio added.

Ammonia, an inorganic compound of nitrogen and hydrogen, is currently being explored as a potential fuel for power generation due to its zero-emission properties.

This supports the country’s broader goal of transitioning from coal to cleaner energy sources.

Based on the latest DOE data, coal still accounts for the largest share of the power mix at 63 percent, followed by renewable energy (22 percent) and natural gas (14 percent).

Coal facilities are regarded as reliable sources of baseload power due to their capacity to operate continuously and provide an uninterrupted supply of electricity to the grid.

Meanwhile, MGEN yesterday named Felino Bernardo as the new president and CEO of its thermal business, replacing longtime executive Jaime Azurin.

Bernardo, who was appointed chief operations officer earlier this year, is poised to take the helm of MGEN Thermal effective Oct. 1.

Azurin, meanwhile, is set to retire at the end of this month after more than two decades of service. He will continue to support the organization in an advisory capacity until Dec. 31 to ensure a smooth transition.

To further strengthen its leadership team, MGEN Thermal has also appointed energy expert Arnel Santos as senior vice president and chief operations officer starting Oct. 1.

“With Lino’s deep industry expertise and Arnel’s global track record in operational transformation, we are further equipping the business to meet the Philippines’ growing power needs responsibly and efficiently,” Rubio said.