Aboitiz allots $462 M for power plant
Aboitiz Power Corp. (APC) will spend about $462 million to double the capacity of its 232-megawatt (MW) coal-fired power plant at the Phividec Industrial Estate in Misamis Oriental, the company’s top executive said.
APC president and CEO Erramon Aboitiz said in the meantime, they are scouting for potential buyers of the additional capacity as they need these offtakers before they could push through with the expansion program.
“We want to expand the plant but the problem is we need some contracts from offtakers. We’re studying the market but we are comfortable that the market is there. We’re now talking to about three to four buyers,” Aboitiz said.
He said if they could be able to sign supply contracts with buyers, this year, they could start construction soon and complete it in three to four years time.
“Using rough estimates, a coal plant costs about $2 million per megawatt,” Aboitiz said. “This means the plant expansion may cost around $464 million to construct.”
APC bought a 34-percent share in German firm STEAG State Power Inc., the owner of the
Evonik owns 55 percent of STEAG. About 11 percent is held by local project partner State Investment Trust Inc.
The coal-fired facility started commercial operations in November 2006 with investments amounting to $305 million.
Every year, the plant generates about one billion kilowatt hours of power.
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