Coal industry sees 15% consumption growth amid infrastructure push

COAL consumption is expected to grow an average of 15% each year until the end of the government’s term, driven by robust infrastructure spending, an industry off icial said.

Consumption “is on an upswing. I’m looking at 10%- 20% increase [ this year] from the previous year,” Arnulfo Robles, executive director of the Philippine Chamber of Coal Mines, Inc. (Philcoal), said in an interview.

In absolute terms, he placed the growth increment at two million metric tons (MMT) to four MMT this year. The Department of Energy (DoE) estimated last year’s coal consumption at 20.296 MMT, down 6.3%.

“The figure of DoE is also moving,” Mr. Robles said.

Asked about the factors driving the growth in consumption, he cited activity in the power plants and cement sectors “because of the ‘Build, Build, Build’ policy of the government.”

“These are the things that would push the consumption of coal,” he said.

Mr. Robles said that for the next five years, growth is likely to “go along that line. [About] 15% is the average rate, going up until the end of the administration.” The current government leadership ends in mid-2022.

He said coal imports will continue to outpace the use of locally sourced coal with the entry of “supercritical” coalfired power plants fueled by coal with higher calorific or heating value. These advancedtechnology plants are said to be more efficient and emit less greenhouse gas.

Mr. Robles cited Australia, which ships high-value coal to the Philippines, as possibly cornering a bigger share of supply.

Last year, coal from Indonesia amounted to 17.988 MMT, accounting for about 86.25% of the country’s total coal imports. Australia’s share was around 3.03%, DoE data show.

“We are pushing for advanced supercritical technology coal- fired power plants. They use high BTU ( British thermal unit),” he said, referring to the amount of heat required to raise water.

Coal-fired power plants burn coal in a boiler to produce steam, which in turn flows into a turbine that spins a generator to create electricity.

“If we have to push for more plants with that kind of technology, then we’ll need more Australian coal more than Indonesian coal,” Mr. Robles said.

As of last year, of the Philippines’ installed capacity of 21,423 megawatts (MW), 34.6% or 7,419 MW come from coalfired plants, making them the country’s dominant power source.