THE government wants to build a coal-blending facility in Mindanao to reduce the country’s dependence on Indonesian coal and strengthen energy security, Energy Secretary Sharon Garin said at a forum hosted by the European Chamber of Commerce of the Philippines on Thursday.
The proposed facility could allow power producers to blend domestic coal with imported supplies to meet the fuel specifications of coal-fired power plants, Garin explained.
She noted that much of the country’s domestic coal cannot be used directly by existing power plants since it does not meet their fuel specifications.
A blending facility could combine different grades of coal to achieve the quality required by power plants while reducing costs and dependence on imported fuel, Garin said.
The DOE has floated the proposal to power generators, coal miners and traders to draw interest from private-sector investors.
The location could be in Mindanao, which has existing coal deposits, Garin said, noting that greater use of domestic resources could also generate additional income for local communities.
The proposal remains at an early stage, with no firm investment or construction plans yet.
But the idea has gained ground amid uncertainty over Indonesia’s coal export policies. The Philippines sources 95 percent of its imported coal from Indonesia, leaving the country vulnerable to supply disruptions or policy changes.
“We need to diversify [from] that risk,” Garin said.
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