Napocor mulls 100% local coal as fuel for Calaca power plant

The state-owned National Power Corp. (Napocor) is looking at the possibility of using 100 percent local coal for its Batangas-based Calaca coal-fired power plant operations.

Napocor officials told reporters over the weekend that the state-run power generation company is now in the testing period for Calaca’s Unit I which currently uses blended imported and local coal. Unit II of Calaca already uses 100 percent local coal.

"The plan is to have the (Calaca) plant to utilize 100 percent coal from Semirara," the officials said.

Semirara, located in Antique, is one of the main sources of coal products in the country. "If this is successful Calaca will be the first coal plant in the country to use 100 percent local coal," the officials stressed.

This move, the officials said, is in line with the government’s thrust to support the local coal industry.

The officials said the plan is to get a minimum of about 100,000 metric tons (MT) from Semirara every month. At present, the indicative price of one MT is P1,100 per MT.

"This means that Napocor will be sourcing some P110 million a month from Semirara. This will be good for the local coal industry," the officials added.

"With the testing of Calaca, and if it becomes successful, the local coal industry will be getting a bigger share of the market," the officials said.

If Napocor will get the entire Calaca coal requirement from Semirara, all the imported coal earlier bid out will be diverted to the Pagbilao coal-fired thermal plant owned by Mirant Corp. of the US.

Coal is a fossil fuel. It is combustible, sedimentary, organic rock formed from vegetation which has been consolidated between other seams, and altered by the combined effects of microbial action, pressure and heat period.

For many developing countries like the Philippines, affordable energy from coal is vital for building internationally competitive industries, and providing basic household services such as lighting, cooking and refrigeration.

Unlike oil and gas, coal is easily obtained from a large range of suppliers operating in a competitive market. – Donnabelle Gatdula