Ayala unit, partner putting up 2nd 135-MW coal-fired power plant

South Luzon Thermal Energy Corp., a partnership between Ayala-led AC Energy Holdings  and Trans-Asia Oil and Energy Development Corp., is pushing through with plans to put up a second 135-megawatt coal unit in Batangas worth about P10 billion.

In separate disclosures to the Philippine Stock Exchange Monday, Ayala Corp. and Trans-Asia said South Luzon Thermal signed last week an engineering, procurement and construction (EPC) contract with DM Consunji Inc. for the construction of the coal facility.

Under the EPC contract, DMCI, together with China National Technical Import and Export Corp., will construct under a turnkey arrangement the second 135-MW coal-fed unit, to be located next to the first 135-MW unit that is currently being put up in Calaca, Batangas.

Ayala added in its disclosure that AC Energy would be investing another P1.5 billion in South Luzon Thermal for the construction of the second coal unit, which would start in the second half of the year for completion in 2016.

The first unit, worth P12 billion, is scheduled for completion by 2014.

Trans-Asia Oil, as a wholesale aggregator, will purchase all the generated output from the first coal unit of South Luzon Thermal within 15 years.

It was earlier reported that the coal project in Batangas would have significantly lower carbon emissions than other coal-fired generating plants as it will be using a clean coal technology, based on a circulating fluidized bed system. Emission rates from these plants were estimated by the company to be about 60 percent to 70 percent lower than the requirements of the Department of Environment and Natural Resources.

Trans-Asia earlier said it wanted to source its coal mainly from the Consunji-led Semirara Coal Corp., which produces coal with low sulfuric content. It also was planning to import coal from Indonesia.