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    Conal to build coal
    plant in Saranggani
     
    By Paul Anthony Isla
    Reporter
     

    EXPECTED to supply part of the base-load power requirement in Mindanao four years from now, Alcantara-led Conal Holdings Co. (CHC) said Tuesday that it will build a $450-million 200-megawatt (MW) coal–fired power station in southern Mindanao.

    The Kamanga Power Plant (KPP) will be located in barangay Kamanga in Maasim town, Saranggani province.

    In a statement, Gregorio Gonzales, KPP project manager, said the plant is designed to accommodate an increase in generating capacity of up to 900 MW. The company is currently validating technical surveys in the project site and is wrapping up the conduct of feasibility studies. Construction is expected to begin in the middle of next year.

    CHC is a joint venture between the Alcantara family and Thai-owned power firm EGKO.

    In September 2007, Tomas Alcantara, chairman of the Alcantara Group of Companies (Alsons), announced the company is building a coal-fired power plant in Saranggani in anticipation of a projected power shortage in Mindanao.”This power station will serve the requirements of Mindanao’s distribution utilities, particularly those in the south, as well as those of the various industrial loads. It will be the cheapest new entrant in the grid when it becomes operational in 2012,” Alcantara said.

    Alsons has been in the power-generation business for over 15 years. It operates the Western Mindanao Power Corp. in Zamboanga and the Southern Philippine Power Corp. in Saranggani. A third plant, the Northern Mindanao Power Corp. in Iligan City, has already been transferred to the National Power Corp, under the BOT (build-operate-transfer) scheme. All three power plants are bunker C-fired

    The Alcantara company also owns a 60-MW bunker C-fired diesel power station in Sulawesi, Indonesia and operates power plants in Vietnam, China and Pakistan

    Mindanao has an existing generating capacity of 1,850.4 MW, beginning 2008 but the dependable capacity is only 1,520 MW. Peak demand starting this year is projected to hit 1,440 MW.

    Industry regulations require the Mindanao grid to maintain a reserve capacity of at least 23.4 percent of their generating capacity. Peak demand for power supply by 2015 is expected to hit 1,750 MW. At present, only the Sibulan 70-MW Hydro Power Plant Project in Sta. Cruz, Davao is under construction.

    “We expect power supply to become tighter and tighter over the next three years, edging towards a shortage by 2012 and onwards. This is the main objective of the Kamanga Power Plant project.—to fill the gap between supply and demand,” Gonzales said.

    The KPP project expects to initially generate 200 MW of electricity by 2011 with two incremental expansions of 350 MW over a 15-year period.  When fully completed, the power plant will be able to generate 900 MW of electricity. It will serve as a major source of energy for southern Mindanao and will be able to supply 15 percent of the power needs in the region. But concerns over carbon emissions have critics raising howls over its impact on the environment.

    Gonzales, however, quickly allayed fears aired by critics, most especially from the Catholic Church in the region.

    The KPP project, he pointed out, will comply with all the emission standards set by the Philippine Clean Air Act (Republic Act 8749) of 1999.

    “The design we have chosen will have emissions way-below the ceilings set by law. The plant will use the circulating fluidized bed combustion (CFBC) process, said to be the most efficient and cleanest among available coal-powered plant technologies in the industry today,” he said.

    The CFBC technology has a wide range of fuel acceptability. It can use low-grade coal, biomass, sludge, waste plastics and waste tire as fuel. Conventional boilers for power generation can use only fossil fuel such as high-grade coal, oil and gas.

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