RP Energy Drops Subic Coal Project

By LENIE LECTURA – APRIL 28, 202
from Business Mirror

Redondo Peninsula Energy Inc. (RP Energy) is no longer pursuing the development of a coal power facility in Subic, Zambales.

“Not anymore coal,” replied Meralco PowerGen Corp. President Rogelio Singson via text message when asked Tuesday if RP Energy will push through with the coal power plant.

RP Energy is joint venture among Meralco PowerGen Corp. (MGEN), Aboitiz Power Corp., and Taiwan Cogeneration Corp. Its original plan was to put up a 2×300-megawatt (MW) coal-fired power plant.

However, project construction could not move forward because of geological issues, particularly stability of the site. Another reason is the delay in the approval of the PSA (Power Supply Agreement) by the Energy Regulatory Commission (ERC).

Instead, RP Energy is seriously considering converting the stalled coal project into a liquefied natural gas (LNG) project.

“The site in Redondo may not be for baseload, maliit. So, maybe for mid-merit LNG, which we are studying with our partners,” Singson added.

Meralco Chairman Manuel V. Pangilinan said that the company would pursue investments in gas plants, saying the company “should not be left behind with respect of the construction of gas plants.”

MGen is the power generation arm of distribution firm Meralco.

“Meralco is looking at a number of options in terms of gas plants. We are in active discussions with potential partners as we speak,” said Pangilinan.

AboitizPower President Emmanuel V. Rubio also said recently that the company has relayed to Meralco its intention to stay away from new coal plants, including the proposed coal project of RP Energy.

“We are partners with Meralco in RP Energy. We have communicated in RP Energy that we will not be building coal anymore, that we are actually reserving that site for possible gas option to supply as CSP (Competitive Selection Process) by Meralco or any other distribution utility that we have a CSP, say for mid-merit, and even for an NGCP provider for ancillary services,” said Rubio.

Singson shared the same view. “Agree, no more coal.”

The AboitizPower chief said gas investment is always on its list. “We already have a team looking at our gas option. We are doing, on a very early stage, feasibility studies for gas on at least two locations.”

Earlier, Rubio identified possible LNG sites, including Pagbilao, Quezon and Mariveles, Bataan.

AboitizPower, through Therma Luzon, Inc. is the independent power producer (IPPA) of the Pagbilao coal-fired power plant.

“By February 2026, Pagbilao will be turned over to us. That site is a potential site for gas,” Rubio said.

The company is also exploring, together with partners in GN Power, if it can actually buy land in Mariveles for that possibility, as well.

Rubio had mentioned that the site where RP Energy was supposed to build a coal plant in Subic could be a site for a small LNG unit.

Their declaration not to build new coal plants is on offshoot of a Department of Energy (DOE) policy issued recently. The agency said it would no longer accept greenfield applications for coal plants.

“Will there be an opportunity for coal in the future? We are coming up with a definitive position in coal. You all know that DOE came up with a coal moratorium policy and still allowing brownfield coal in certain categories, especially super critical coal, moving forward and those with permits to proceed.

I think in certain areas in the Philippines there will be specific niches where coal will remain to be competitive and, at the end of the day, it will be still be market forces that will decide that. Will we participate? It’s something that we will continue to look at, but the option that we are really considering, particularly in Luzon, would be gas,” said Rubio.