DOE to award 9 coal mining deals

MANILA, Philippines - In an effort to promote the use of clean coal technologies in the country, the Department of Energy (DOE) will award nine more coal mining contracts under its Philippine Energy Contracting Round (PECR).

Energy Secretary Angelo Reyes said the nine coal contracts are part of the 25 contracts in the main list offered in the PECR this year but were not tapped by investors.

“We have offered 25 operating contracts but only 16 had bidders. So the balance of nine coal operating contracts are still available,” Reyes said.

Reyes said they expect to offer the new coal contracts at the next PECR early next year.

Last September, the department awarded 11 coal exploration and development contracts to investors. Five more coal contracts were awarded this week.

The energy chief said coal, considered one of the cheapest fuel sources, is a “transition fuel” while renewable energy sources have yet to be developed.

At present, coal contributes about a quarter of the country’s power generation mix.

Coal has a significant use aside from power generation. It is being utilized in the cement, chemical, paper, canning, alcohol, smelting and fertilizer industries.

Local production of coal, however, contributes only 30 percent of domestic demand.