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
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
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
Change language