Ms Ruby B de Guzman - Expert Group on Clean Fossil Energy
Ms Ruby B de Guzman - Expert Group on Clean Fossil Energy
Ms Ruby B de Guzman - Expert Group on Clean Fossil Energy
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COAL DEMAND IN THE PHILIPPINES<br />
APEC <strong>Clean</strong> <strong>Fossil</strong> <strong>Energy</strong><br />
Technical and Policy Seminar<br />
23 February 2006<br />
Lampang, , Thailand<br />
<str<strong>on</strong>g>Ruby</str<strong>on</strong>g> B. <str<strong>on</strong>g>de</str<strong>on</strong>g> <str<strong>on</strong>g>Guzman</str<strong>on</strong>g><br />
Department of <strong>Energy</strong>
DEPARTMENT OF ENERGY<br />
OUTLINE<br />
• Coal Industry Performance<br />
• Coal Demand and Supply<br />
• Philippine Coal Situati<strong>on</strong><br />
• Committed Power Plant Projects<br />
• CCT Initiatives<br />
• 2005 Coal Supply & Demand Highlights<br />
• Challenges and Acti<strong>on</strong> Plan
COAL INDUSTRY PERFORMANCE<br />
In Milli<strong>on</strong> Metric T<strong>on</strong>s<br />
10<br />
9<br />
8<br />
7<br />
6<br />
1 9 7 7<br />
1 9 7 8<br />
1 9 7 9<br />
1 9 8 0<br />
1 9 8 1<br />
1 9 8 2<br />
1 9 8 3<br />
1 9 8 4<br />
1 9 8 5<br />
1 9 8 6<br />
1 9 8 7<br />
1 9 8 8<br />
1 9 8 9<br />
1 9 9 0<br />
1 9 9 1<br />
1 9 9 2<br />
1 9 9 3<br />
1 9 9 4<br />
1 9 9 5<br />
1 9 9 6<br />
1 9 9 7<br />
1 9 9 8<br />
1 9 9 9<br />
2 0 0 0<br />
2 0 0 1<br />
2 0 0 2<br />
2 0 0 3<br />
2 0 0 4<br />
5<br />
4<br />
3<br />
2<br />
1<br />
0<br />
Total Producti<strong>on</strong><br />
Importati<strong>on</strong><br />
C<strong>on</strong>sumpti<strong>on</strong><br />
SSCM<br />
0.12<br />
0.1<br />
0.08<br />
0.06<br />
0.04<br />
0.02<br />
DEPARTMENT OF ENERGY<br />
0
POWER GENERATION MIX<br />
% SHARE by FUEL TYPE<br />
Geothermal<br />
18%<br />
2004 2003<br />
COAL<br />
Geothermal<br />
29%<br />
19%<br />
COAL<br />
27%<br />
Hydro<br />
16%<br />
Hydro<br />
15%<br />
Oil<br />
15%<br />
NatGas<br />
22%<br />
Oil<br />
14%<br />
NatGas<br />
25%<br />
DEPARTMENT OF ENERGY
POWER GENERATION MIX<br />
(in GWh)<br />
Fuel Type 2004 2003<br />
Hydro 8,593 7,870<br />
Coal 16,194 14,939<br />
Geothermal 10,282 9,822<br />
Natural Gas 12,384 13,139<br />
Oil 8,504 7,170<br />
Total 55,957 52,941<br />
DEPARTMENT OF ENERGY
COAL SUPPLY AND DEMAND<br />
2004 COAL CONSUMPTION<br />
By END-USER<br />
Cement<br />
23%<br />
Ind'l/Direct<br />
Process<br />
4%<br />
Power<br />
73%<br />
YEAR<br />
POWER<br />
CEMENT<br />
IND’L/DIREC<br />
T PROCESS<br />
2004 5,267,349 1,658,730 315,764<br />
DEPARTMENT OF ENERGY
COAL IMPORTATION<br />
Producti<strong>on</strong><br />
26%<br />
2004<br />
Importati<strong>on</strong><br />
74%<br />
South Africa<br />
1%<br />
Vietnam<br />
6%<br />
Australia<br />
5%<br />
Ind<strong>on</strong>esia<br />
40%<br />
China<br />
48%<br />
DEPARTMENT OF ENERGY
Philippine Coal Characteristics<br />
• Soft to <str<strong>on</strong>g>de</str<strong>on</strong>g>nse (functi<strong>on</strong> of <str<strong>on</strong>g>de</str<strong>on</strong>g>pth), Lignite to<br />
Bituminous type<br />
• Mostly formed during Miocene age<br />
(~23 - 25 m. y. ago)<br />
• Occurs in mo<str<strong>on</strong>g>de</str<strong>on</strong>g>rately to highly disturbed<br />
areas<br />
• Tapers & pinches-out<br />
• Heating value from ~7,000 – 12,000 BTU/lb<br />
(3.89 x 10 3 – 6.67 x 10 3 cal/g)<br />
DEPARTMENT OF ENERGY
COAL BASINS OF<br />
THE PHILIPPINES<br />
Iguig, Cagayan<br />
Lignite<br />
Cauyan, Isabela<br />
Lignite<br />
Bor<str<strong>on</strong>g>de</str<strong>on</strong>g>os, Polillo<br />
Bituminous<br />
Bulalacao, Mindoro Oriental<br />
Bituminous<br />
Panian, Semirara Is.<br />
Sub-bituminous<br />
Calatrava, Negros Oriental<br />
Sub-bituminous<br />
Hitoma, Catanduanes<br />
Bituminous<br />
Bgy. Liguan, Batan Is.<br />
Bituminous<br />
Cataingan, Masbate<br />
Sub-bituminous<br />
Hinabangan, Samar<br />
Sub-bituminous<br />
Uling, Cebu<br />
Sub-bituminous<br />
Malangas, Zamboanga Sibugay<br />
Bituminous<br />
Bislig, Surigao <str<strong>on</strong>g>de</str<strong>on</strong>g>l Sur<br />
Sub-bituminous<br />
Lake Sebu, South Cotabato<br />
Lignite<br />
Maitum, Sarangani<br />
Lignite<br />
DEPARTMENT OF ENERGY
2005 ACTIVE<br />
PHILIPPINE COAL<br />
PRODUCERS<br />
D. M. Wenceslao & Associates, Inc.<br />
Coal Mountain Ventures, Inc./Rock <strong>Energy</strong>, Inc.<br />
LIMA Coal Development Corporati<strong>on</strong><br />
Semirara Coal Corporati<strong>on</strong><br />
Adla<strong>on</strong> <strong>Energy</strong> Development Corporati<strong>on</strong><br />
Ibal<strong>on</strong>g Resources & Development Corporati<strong>on</strong><br />
Internati<strong>on</strong>al Industrial Management &<br />
Development Corporati<strong>on</strong> (INIMACO)<br />
LUVIMIN Mining & Development Corporati<strong>on</strong><br />
Philippine Nati<strong>on</strong>al Oil Company -<br />
Taiwan Overseas Mining Corporati<strong>on</strong><br />
PNOC - TOMC<br />
Bislig Ventures, Inc.<br />
DEPARTMENT OF ENERGY
Open Pit Mining- Semirara<br />
Coalfield<br />
DEPARTMENT OF ENERGY
2004<br />
SMALL-SCALE COAL<br />
MINE PERMITTEES<br />
Ricardo <str<strong>on</strong>g>de</str<strong>on</strong>g> <str<strong>on</strong>g>Guzman</str<strong>on</strong>g><br />
Bgy. Masaga, Batan Island<br />
Marjorie Ebuenga<br />
San Ram<strong>on</strong>, Batan Island<br />
Arlingt<strong>on</strong> G. Santillan<br />
Bgy. Batan, Rapu-Rapu Island<br />
Nieves N. Le<strong>on</strong>or<br />
Hilubang, Calatrava<br />
R<strong>on</strong>ald Merjamin<br />
Ma-aslob, Calatrava<br />
Le<strong>on</strong>ilo A. Miñosa<br />
Ma-aslob, Calatrava<br />
Salvino Pilipinas<br />
Ma-aslob, Calatrava<br />
Samuel M. Valiao<br />
Bgy. Mandu-ao, Bayawan<br />
Cecelio Sanches<br />
Bgy. Cantabaco, Toledo<br />
Carmen N. Flowers<br />
Bgy. Sinsin, Cebu City<br />
Eduardo L. Sesaldo<br />
Bala-as, Argao<br />
Fulgencio Reval<str<strong>on</strong>g>de</str<strong>on</strong>g><br />
Maloray, Dalaguete<br />
Reynier C. Casurra<br />
San Jose, Bislig<br />
A<str<strong>on</strong>g>de</str<strong>on</strong>g>lfa Falc<strong>on</strong><br />
Pamaypayan, Bislig<br />
Felipe C. Lobo<br />
San Jose, Bislig<br />
DEPARTMENT OF ENERGY
PHILIPPINE<br />
COAL TERMINALS<br />
Poro Point, La Uni<strong>on</strong><br />
Sual, Pangasinan<br />
Masinloc, Zambales<br />
Limay, Bataan<br />
Manila<br />
Calaca, Batangas<br />
Semirara<br />
DEPARTMENT OF ENERGY
COAL-FIRED<br />
THERMAL PLANTS<br />
BATANGAS COAL-FIRED<br />
THERMAL POWER PLANT<br />
2 X 300 MW<br />
(Nati<strong>on</strong>al Power Corporati<strong>on</strong>)<br />
SEMIRARA MINE-MOUTH<br />
POWER PLANT<br />
2 X 7.5 MW<br />
(C<strong>on</strong>sunji <str<strong>on</strong>g>Group</str<strong>on</strong>g>)<br />
DEPARTMENT OF ENERGY
CEMENT &<br />
INDUSTR’L COAL<br />
END-USERS<br />
Fortune Cement<br />
Victorias Milling Company<br />
Asian Alcohol<br />
DEPARTMENT OF ENERGY
Committed Coal-fired Power Plant Projects<br />
200-MW Coal-Fired Power Plant in Mindanao<br />
• Will utilize CCT<br />
• Locati<strong>on</strong>: Villanueva, Misamis Oriental<br />
• Un<str<strong>on</strong>g>de</str<strong>on</strong>g>r c<strong>on</strong>structi<strong>on</strong> by Steag AG of Germany<br />
• Commissi<strong>on</strong>ing scheduled in 2007<br />
200-MW Coal-Fired Power Plant in Cebu<br />
• Locati<strong>on</strong>: Naga, Cebu<br />
• A project of Korean Electric Power Company (KEPCO)<br />
• Will utilize circulating fluidized bed technology for coal<br />
combusti<strong>on</strong><br />
• Commissi<strong>on</strong>ing date: 2008<br />
DEPARTMENT OF ENERGY
DEPARTMENT OF ENERGY<br />
Isabela Integrated Coal Mine-Mouth Mouth Power Plant<br />
Project<br />
• Cauayan and Benito Soliven in Isabela<br />
• Project prop<strong>on</strong>ent: Philippine Nati<strong>on</strong>al Oil Company-<br />
Explorati<strong>on</strong> Corporati<strong>on</strong> (PNOC-EC)<br />
• Open pit mine (estimated mineable reserve of about<br />
25 milli<strong>on</strong> metric t<strong>on</strong>s) and 50-MW MW mine-mouth<br />
mouth<br />
power plant using circulating fluidized bed technology<br />
• In the process of acquiring an Envir<strong>on</strong>mental<br />
Compliance Certificate (ECC).
FUTURE POWER PLANT PROJECTS<br />
PAGBILAO, QUEZON<br />
2008: 350 MW<br />
CAGAYAN<br />
2013: 200 MW<br />
TOLEDO, CEBU<br />
2008: 100 MW<br />
ISABELA<br />
2012: 100 MW<br />
ANTIQUE, SEMIRARA<br />
2009: 100 MW<br />
2012: 200 MW<br />
CEBU (by KEPCO)<br />
2008: 200 MW<br />
MISAMIS ORIENTAL<br />
2007: 210 MW<br />
SULTAN KUDARAT<br />
2009: 200 MW<br />
Legend:<br />
COMMITTED<br />
INDICATIVE<br />
DEPARTMENT OF ENERGY
CCT INITIATIVES<br />
BOILER<br />
The most popular CCT used in coal power<br />
plants and coal c<strong>on</strong>suming industries are<br />
Electrostatic Precipitators, Circulating<br />
Fluidized Bed and Flue Gas<br />
Desulfurizati<strong>on</strong> equipment<br />
EP<br />
FGD<br />
QUEZON COAL-FIRED POWER PLANT<br />
DEPARTMENT OF ENERGY
COAL LIQUEFACTION TECHNOLOGY<br />
MOU between DOE and<br />
Headwaters Technology<br />
Innovati<strong>on</strong> <str<strong>on</strong>g>Group</str<strong>on</strong>g>, Inc.<br />
(HTIG), USA, for the<br />
“Dem<strong>on</strong>strati<strong>on</strong> of a Coal<br />
Liquefacti<strong>on</strong> Project”<br />
C<strong>on</strong>structi<strong>on</strong> of a<br />
commercial-scale facility<br />
(50,000-70,000 barrels per<br />
day) to <str<strong>on</strong>g>de</str<strong>on</strong>g>m<strong>on</strong>strate the<br />
techno- ec<strong>on</strong>omic viability of<br />
a coal-to-liquids plant<br />
MOU signing between DOE<br />
and HTIG<br />
February 2005<br />
DEPARTMENT OF ENERGY
COAL BRIQUETTING AND CARBONIZATION<br />
DEMONSTRATION PROJECTS<br />
Projects <strong>on</strong> coal briquetting and carb<strong>on</strong>izati<strong>on</strong> are also <strong>on</strong>going using<br />
Semirara and Cebu coals in an effort to provi<str<strong>on</strong>g>de</str<strong>on</strong>g> alternatives to cooking<br />
fuel and industrial heating fuel (tobacco curing, foundry, etc.)<br />
Dem<strong>on</strong>strati<strong>on</strong> Project for<br />
Coal Briquette (Carb<strong>on</strong>ized)<br />
Producti<strong>on</strong> Plant<br />
• A cooperati<strong>on</strong> project with<br />
METI, NEDO and CCUJ<br />
(JCOAL) of Japan<br />
• C<strong>on</strong>structi<strong>on</strong> of a mo<str<strong>on</strong>g>de</str<strong>on</strong>g>l coal<br />
briquetting plant with a<br />
capacity of 5 t<strong>on</strong>s/hr of coal<br />
briquettes using the lowtemperature<br />
fluidized<br />
carb<strong>on</strong>izati<strong>on</strong> process<br />
DEPARTMENT OF ENERGY
COAL BRIQUETTING AND CARBONIZATION<br />
DEMONSTRATION PROJECTS<br />
• C<strong>on</strong>structi<strong>on</strong> /installati<strong>on</strong> and performance testing completed<br />
• Modificati<strong>on</strong> works implemented<br />
• Performance test c<strong>on</strong>ducted to c<strong>on</strong>firm effectiveness of modificati<strong>on</strong><br />
works<br />
• Resoluti<strong>on</strong> of remaining issues<br />
• Turn-over and acceptance<br />
Performance test, March 2005<br />
DEPARTMENT OF ENERGY
Envir<strong>on</strong>ment-Friendly Producti<strong>on</strong> of<br />
Carb<strong>on</strong>-Enriched Lignite<br />
• A cooperati<strong>on</strong> project with the<br />
Fe<str<strong>on</strong>g>de</str<strong>on</strong>g>ral Institute for Geosciences<br />
& Natural Resources (BGR) of<br />
Germany<br />
• C<strong>on</strong>structi<strong>on</strong> of a 300 kg/hr rotary<br />
kiln technology <str<strong>on</strong>g>de</str<strong>on</strong>g>m<strong>on</strong>strati<strong>on</strong><br />
plant c<strong>on</strong>sisting of a carb<strong>on</strong>izati<strong>on</strong><br />
unit, pyrolysis system and<br />
briquetting secti<strong>on</strong><br />
Germany, October 2004<br />
• C<strong>on</strong>structi<strong>on</strong>/installati<strong>on</strong><br />
completed and initial performance<br />
testing c<strong>on</strong>ducted<br />
• By 1 st Qtr. 2006, a <str<strong>on</strong>g>de</str<strong>on</strong>g>-dusting<br />
system will be instituted in the<br />
facility to stabilize plant operati<strong>on</strong><br />
Semirara, May 2005<br />
DEPARTMENT OF ENERGY
COAL BED METHANE (CBM)<br />
Research is <strong>on</strong>going<br />
to <str<strong>on</strong>g>de</str<strong>on</strong>g>termine the<br />
methane potential<br />
of coal <str<strong>on</strong>g>de</str<strong>on</strong>g>posits.<br />
Cooperative study<br />
with the US<br />
Geological Survey<br />
c<strong>on</strong>ducted at<br />
Semirara coal fields<br />
Similar study to be<br />
c<strong>on</strong>ducted with<br />
USAID at other coal<br />
fields<br />
DEPARTMENT OF ENERGY
Highlights of the Coal Demand<br />
& Supply Situati<strong>on</strong> 2005<br />
• Coal C<strong>on</strong>sumers<br />
9 power plants<br />
15 cement plants<br />
8 other industries (alcohol, fertilizer rubber boot manufacturing,<br />
steel and ore processing, briquetting)<br />
• Coal C<strong>on</strong>sumpti<strong>on</strong><br />
Total : 9,736,116 Metric T<strong>on</strong>s<br />
Power generati<strong>on</strong>: 7,493,629 MT (77%)<br />
Cement Producti<strong>on</strong>: 1,924,519 MT (20%)<br />
Other Industries: 317,968 MT ( 3%)<br />
• Coal Producti<strong>on</strong><br />
Total : 3,129,242 MT (33% of total supply)<br />
99 % comes from large-scale coal mine operators<br />
1 % comes from small-scale<br />
scale permitees<br />
• Coal Importati<strong>on</strong><br />
Total : 6,317,960 MT (67% of total supply)<br />
Ind<strong>on</strong>esia 50 %<br />
China 33%<br />
Australia 10%<br />
Vietnam 7%<br />
DEPARTMENT OF ENERGY
Highlights of the Coal Demand<br />
& Supply Situati<strong>on</strong> 2005<br />
• Coal terminals<br />
20 loading/unloading terminals<br />
2 blending terminals (PNOC in Naga, Cebu and Bauan, Batangas)<br />
• Coal Importers<br />
12 coal importers<br />
• <strong>Clean</strong> Coal technologies<br />
2 power plants with FGD (Flue Gas Desulfurizati<strong>on</strong> Facility)<br />
1 power plant with CFB (Circulating Fluidized bed)<br />
All power plants and cement plants have electrostatic<br />
precipitators (EP)<br />
for ash mitigati<strong>on</strong><br />
• 34 Coal Operating C<strong>on</strong>tracts (14 in explorati<strong>on</strong> stage)<br />
• 43 Small-Scale<br />
Scale Permitees<br />
• 26 active<br />
• 17 inactive<br />
• 15 approved in 2005<br />
DEPARTMENT OF ENERGY
Development Challenges<br />
• Social acceptability factors arising from the impressi<strong>on</strong> that coal<br />
projects are hazardous to the envir<strong>on</strong>ment<br />
• Peace and or<str<strong>on</strong>g>de</str<strong>on</strong>g>r situati<strong>on</strong> in remote coal areas (Surigao(<br />
Surigao,<br />
Mindoro & Isabela)<br />
• Likewise, indigenous people inhabiting protected areas c<strong>on</strong>tinue<br />
to block coal mining activities<br />
• Availability and <str<strong>on</strong>g>de</str<strong>on</strong>g>velopment of ready market for indigenous<br />
coal<br />
DEPARTMENT OF ENERGY
• C<strong>on</strong>duct informati<strong>on</strong> campaign <strong>on</strong> clean coal technologies (CCT)<br />
for LGUs and other stakehol<str<strong>on</strong>g>de</str<strong>on</strong>g>rs to generate social acceptability<br />
• Pursue envir<strong>on</strong>mental programs and new technologies such as<br />
low-rank coal upgrading, FGD for other coal-fired power plants,<br />
mine-mouth mouth power projects, c<strong>on</strong>versi<strong>on</strong> of indigenous coal to<br />
liquid fuels technology and CBM resource potential inventory<br />
• Review policy gui<str<strong>on</strong>g>de</str<strong>on</strong>g>lines <strong>on</strong> small-scale scale mining operati<strong>on</strong>s<br />
(appropriate mining methods and technologies)<br />
• Pursue small-scale scale coal mining projects to provi<str<strong>on</strong>g>de</str<strong>on</strong>g> livelihood in<br />
certain coal mining areas<br />
Acti<strong>on</strong> Plan<br />
• I<str<strong>on</strong>g>de</str<strong>on</strong>g>ntificati<strong>on</strong> of additi<strong>on</strong>al coal explorati<strong>on</strong> areas<br />
• Development of additi<strong>on</strong>al markets<br />
DEPARTMENT OF ENERGY
C<strong>on</strong>clusi<strong>on</strong><br />
• Coal remains to be the least-cost opti<strong>on</strong> for power generati<strong>on</strong> in<br />
the country<br />
• Adopti<strong>on</strong> of clean coal technologies will maximize the use of<br />
coal for power generati<strong>on</strong><br />
• Feasibility studies for mine mouth power projects should be<br />
intensified especially in island regi<strong>on</strong>s with i<str<strong>on</strong>g>de</str<strong>on</strong>g>ntified coal<br />
reserves<br />
DEPARTMENT OF ENERGY
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