Napocor tightens coal procurement rules

State-owned National Power Corp. (Napocor), the country’s largest power generation firm, will implement a stricter coal procurement process to ensure compliance with the Clean Air Act (CAA).

Based on its revised terms of reference (TOR) for coal bidding, Napocor has reduced the maximum allowable sulfur content in its coal purchases from 0.9 percent to 0.7 percent.

According to Napocor, the rejection limit has been placed at 0.8 percent which means that coal with a suflur content of 0.8 percent or more must be used in any of Napocor’s coal fired power plants.

The power firm said while the existing 0.9 percent sulfur content is already within acceptable levels based on the CAA timetable, a reduced suflur content will improve the quality of coal used in the power plants as well as lessen the level of emissions.

The reduction in sulfur content, Napocor said, will not in any way have any cost impact on the price of coal purchased.

Another vital feature of the revised TOR is the inclusion of a cargo protection service provider, a third party that will check if the samples taken from the supplier’s stockpile match the coal loaded to the vessel.

This is to ensure that no coal below the required level of standards prescribed in the TOR and verified in the laboratory analysis will be shipped to the power plants.

It said while the company has incorporated already a third party laboratory analysis in the contract with the supplier, a cargo protection services provider will ensure that no sub-standard coal will be mixed to the shipment.

The revised TOR will be in effect starting next month and will be the basis of requirement in the forthcoming coal tenders of Napocor.

Napocor OIC-president Roland S. Quilala said no Napocor power plant has received any notice from the Department of Environment and Natural Resources (DENR) for violation of environmental laws.

Quilala said the power firm would continue to take steps to ensure that the operation of its plants do not pose danger to public health as well as the environment.