Napocor eyes other sources of coal

In an effort to diversify the sources of its coal requirements, the National Power Corp. (Napocor) will look at the possibility of allowing some of its coal-fired power plants to use lower grade coal.

Napocor president Rogelio Murga said the state-owned power firm can bring down the rated capacity of its power plants so it can utilize lower grade coal.

Murga said Napocor is partially implementing this so-called "derate capacity" in Calaca and Masinloc.

"We will try to see if we can use the same method in all our other coal-fired power plants," he said.

Aside from Calaca and Masinloc, Napocor runs the Naga and Batangas coal-fired power plants. Its independent power producers (IPPs) which also run in coal are Pagbilao and Sual, operated by Mirant Philippines.

Murga said Napocor is also willing to buy blended coal from local coal suppliers. "We can make use of local coal. It will be up to the local suppliers to import high-grade coal to be blended to their own lower grade coal to be able to meet our requirements. For instance, Semirara Coal Corp. can import high grade coal and blend it with that of Semirara coal produce," he explained.

He said they have asked authority from the Department of Energy (DOE) to source out their requirement anywhere they want.

Napocor is eyeing coal suppliers from Australia, South Africa, Indonesia and Russia, but will continue to buy coal from China.

Aside from this, Napocor will also enter into long-term contracts with these new coal suppliers. "We will try to enter into three to five years contracts with these new suppliers," he said.

Murga said there is a need to diversify the company’s sources of coal amidst the tight coal supply in China.