The Department of Energy (DOE) hopes major power players will invest in the country’s first coal blending terminal to maximize domestic coal supply and reduce the Philippines’ vulnerability to foreign policy changes.
On Thursday, Energy Secretary Sharon Garin told reporters that the DOE is mulling building a centralized blending facility to reduce local coal power plants’ imports from Indonesia.
The ideal location is Mindanao due to its coal sites and port terminals, with Garin expressing optimism that private sector development will occur with minimal government oversight.
The blending terminal will source both domestic and foreign coal, combining high- and low-grade varieties for industrial needs.
The Philippines relies on Indonesia for over 90 percent of its coal needs. However, Indonesia will revise its export guidelines in January, potentially impacting the Philippines.
‘We don’t have energy security as far as coal is concerned, because 95 percent of our coal is imported from Indonesia. Anything can happen,’ she said on the sidelines of the 15th Energy Smart Forum in Makati City.
‘So what we need is to have a diversification of our risk. So we need to source it from different countries if there’s an option, or the best option is to source it in our country. Most of our coal, they say, is not good enough for our coal power plants. But there’s a way to do that: we can mix our coal with something that can be useful for our coal power plants,’ Garin added.
Garin said the government is negotiating with Australia, Russia, and others for new supplies since the blending facility won’t be operational soon.
At the same time, the DOE is preparing for a coal mine auction, including the Semirara site, before the year ends