Filed Under: Energy & Resources, Heavy construction, Investments
MANILA, Philippines—Publicly listed Trans-Asia Oil and Energy Development Corp. (TA-Oil) recently signed a contract with DM Consunji Inc. for the construction of a 135-megawatt coal-fired power plant in Batangas.
In a disclosure to the Philippine Stock Exchange, Trans-Asia reported that the engineering, procurement and construction (EPC) deal was sealed last Thursday. The contract will allow Trans-Asia to proceed with its power project, which it hopes to complete by 2014.
The proposed clean coal power facility, which would be Trans-Asia’s first base-load plant to support its electricity supply business, was earlier estimated to cost P8.5 billion, of which 65 percent would be financed by loans. The company’s existing equity would account for the remaining 35 percent.
Trans-Asia earlier reported that its Batangas coal project would have significantly lower carbon emissions than other coal-fired generating plants.
Clean coal technology relies on circulating fluidized bed technology that minimizes the environmental impact of coal-fired plants through lower carbon, sulfur oxide and nitrogen oxide emissions, the company said. Emission rates from clean coal plants are estimated to be about 60 percent lower than the existing requirements of the Department of Environment and Natural Resources.
Trans-Asia earlier said that it wanted to source its coal from the Consunji-led Semirara Coal Corp., which produces coal with low sulfur content.
The company said that the proposed site of the plant in Barangay Putting Bato West, Calaca, Batangas would be ideal due to its ease of interconnection with the Luzon power grid.