Semirara to build 1st coalbed methane power plant in Asia

MANILA, Philippines - Semirara Mining Corp. is planning to put up the first ever coalbed methane power plant in Asia.

Semirara vice chairman and DMCI Holdings Corp. president Isidro Consunji, said the proposed coalbed plant would initially have a capacity of seven megawatt (MW) with potential investment of $14 million.

Coalbed methane is a form of natural gas extracted from coal beds. At present, Semirara is the country’s largest coal mining firm.

According to Consunji, if this project pushes through, they may need to tap a partner to develop Semirara’s coal bed methane potential for power generation.

“We are talking to someone already,” Consunji said, confirming they will develop the project with Endesa Carbono S.L. of Spain.

Consunji said this project has been in the pipeline for sometime now and the company is ready to push through with the project anytime soon.

Construction of the project is expected to begin this year, with the earliest commissioning eyed in 2012.

He said Semirara signed a memorandum of agreement with Endesa in 2009 for the implementation of a United Nations Framework Convention for Climate (UNFCC) Clean Development Mechanism (CDM) Coal Bed Methane Project at the Semirara mine site in Antique.

Based on the agreement, Endesa will design, install and maintain a coal mine gas extraction and flaring system under the first phase of the project.

For its part, Semirara will construct a pipeline to take the collected gas to the existing power plant in Semirara and elsewhere under the second phase.