Aboitiz eyeing LNG for Cebu in shift from coal to clean fuel
ABOITIZ Power Corp. is looking at providing liquefied natural gas (LNG) in Cebu in a few years, as part of the company’s transition plan to shift from coal to clean fuel.
“We’ve also made pronouncements that we will grow our generation portfolio without adding new coal, thus we’re also considering LNG for Naga, Cebu for 150 megawatts that will be delivered in 2026,” said Aboitiz Power President Emmanuel Rubio.
It had also declared that it would participate in the upcoming competitive bidding for the requirements of the Manila Electric Company (Meralco) using LNG. “As I’ve mentioned in the past, we’re looking at participating in the Meralco CSP (Competitive Selection Process) that will be delivered in 2030 according to their power supply procurement plan (PSPP), and we intend to participate using LNG,” added Rubio.
The power firm’s LNG power projects with JER A Co. Inc. are “still in the early development phase,” but Rubio stressed the company intends to “eventually shift our baseload focus to gas.”
JERA had finalized its acquisition of a 25.01-percent stake in Aboitiz Power for $1.5 billion. Japan’s largest power generation firm also purchased a 1.99-percent stake from the Aboitiz family’s privately held parent company, Aboitiz & Company. In all, JERA acquired a 27-percent stake in Aboitiz Power.
Aboitiz Power and JERA earlier identified potential areas for collaboration across multiple fonts, including a joint development of Lng-to-power projects, fuel sourcing and management of LNG, potential participation in aspects of plant operation and management, and exploration of use of new generation technologies.
Rubio said the power firm’s transition to cleaner fuel has started. “We’re already transitioning as we have started our aggressive investments in renewable energy. While our Lng-to-power projects with JERA are in the early development phase, it’s our intention to eventually shift our baseload focus from coal to gas.”
Aboitiz Power aims to build 3,900 MW of RE projects in the next 10 years, to grow its portfolio to 9,200 MW, and to achieve a 50:50 renewables and thermal capacity mix.
“We are looking forward to the completion and commercial operations of our Cayanga solar project by the end of this year. In the next few weeks, we will also be able to secure a notice to proceed for our 160Mwpeak Laoag Solar project.
“All in all over the next three years, we have about 721 MW of RE projects under priority development. These are all part of our RE growth strategy over the next decade,” he said.
The 721 MW RE projects include the 212 MWP PV Sinag Power Olongapo solar; 150MWP Calatrava solar; 84MWP PV Sinag Power San Manuel solar; 75MWP SN Aboitizpower-magat floating solar; 56MWP PV Sinag Power Ramon solar; 50MWP Sinag Power Gamu solar; 44MWP AP Renewable tar lac solar; 40mw hedcor Bu kid non ki bung an hydro; and 10mw SN Aboitiz Power Magat BESS.
The company allotted P28 billion for capital expenditures this year to complete its coal-fired power plant in Bataan, expand its renewables portfolio, and upgrade power facilities to ensure adequate supply this year. Last year, capex was P23 billion.
“At Aboitiz Power, we recognize our integral part in the commitment towards net zero emissions in the country. Through our 50/50 by 2030 strategy, we aim to achieve a balance between renewable and thermal portfolios in support of the global movement for clean energy,” said Rubio.
Last week, SN Aboitiz Power-magat (SNAP-MAGAT) broke ground on its 20MW battery energy storage system (BESS) project in Ramon, Isabela.
SNAP is a joint venture between Scatec of Norway and Aboitiz Power.
The ground-breaking signals the start of the Magat BESS project’s construction phase, targeted for commercial operation in the first quarter of 2024.
SNAP took over the ownership and operations of the Magat hydropower plant on April 26, 2007 following a successful bid under the government’s privatization program. The facility, with a maximum capacity of 388 MW, underwent half-life refurbishment in 2014. In 2017, the company inaugurated the 8.5 Maris hydro, and two years later, piloted the 200kilowatt floating solar on the Magat reservoir, its first non-hydro RE project.