PNOC to push through with Isabela project

State-owned Philippine National Oil Co. (PNOC) will push through with the construction of a 50-megawatt (MW) mine mouth coal plant in Northern Luzon, a top company official said.

PNOC president Eduardo Mañalac said the coal-fired power facility will use local coal as part of government’s thrust towards energy independence. The company will eventually limit the use of coal plants to only those using local coal and clean coal technology.

"This initiative will not only maximize the efficiency of coal power, it will optimize our local coal supply and promote a user-friendly environment," Manalac said.

PNOC is reportedly eyeing to set up the coal mine mouth plant in Cauyan, Isabela.

In 2002, the provincial government of Isabela and the PNOC-Exploration Corp. signed a memorandum of understanding (MOU) for the exploration, development, financing and ownership of a proposed 50-MW integrated coal mine power plant.

Though the project is still to be pursued by PNOC, construction has been delayed due to resistance from environmentalist groups.

Mañalac said PNOC also plans to become the biggest coal producer in the country in the next five years, surpassing the coal output of Semirara Mining Corp.

"Our goal is to become larger than Semirara in five years. Semirara, as you know, is the Philippines’ biggest coal mine," the PNOC official said.

Semirara is the largest coal producer in the country, contributing about 1.306 million metric tons (MT) or 96.54 percent to total domestic coal production.

"In the area of coal exploration, we are doubling our efforts in the Malangas region of Mindanao and are planning various international coal ventures in Indonesia," Mañalac said.

PNOC-Exploration Corp. (PNOC-EC), a subsidiary which assumed the operations of the defunct PNOC Coal Corp., is producing about 300 tons of coal per day in Malangas mine in Zamboanga del Sur.

PNOC-EC was also recently awarded by the Department of Energy three exploration contracts covering a total of 3,000 hectares in Isabela and Surigao del Norte. It was granted a service contract allowing them to explore for coal deposits at the three blocks in Isabela and Surigao del Norte.