San Miguel to convert coal plants into biomass generating facilities

The energy investment arm of San Miguel Corporation (SMC) will be converting its existing coal-fired power plants into biomass facilities that shall be feeding on rice husks on its generation of electricity.

In a statement to the media, the diversifying conglomerate noted that those under consideration for conversion are the SMC plants in Limay, Bataan within Luzon grid; and Malita in Davao for Mindanao grid.

“SMC will convert its existing power plants using CFB (circulating fluidized bed) clean coal technology to biomass power facility,” the company said.

As emphasized by SMC President and Chief Operating Officer Ramon S. Ang, “instead of burning or dumping rice husks, we want to fully utilize this agricultural waste product both as energy source for our power plants and income source for our rice farmers.”

Ang noted by using rice husks feedstock, “we reduce our emissions further,” at the same time, this will “encourage farmers to increase rice production… and help address a perennial food security shortage.”

In other electricity markets, the co-firing of coal and biomass-anchored feedstock is resorted to in reducing the carbon emissions of power generating assets.

The Malita plant of San Miguel will have 628 megawatts capacity when completed and all units are set on commercial stream; while its Limay plant is of 600MW installed capacity.

Ang noted that at their current pace of operations, SMC’s coal-fired power plants are already “way, way below the limits set by the Department of Environment and Natural Resources (DENR), and even the standards set by the World Bank.”

Nevertheless, with the utilization of rice husks, the company indicated that its plant emissions “are expected to be even lower.”

The SMC executive added “with rice being a staple food of Filipinos… fuel supply for power facilities using rice husks will be steady.”

He similarly stressed “this can even bring down electricity prices, as we will no longer be subject to price fluctuations and other cost and supply pressures associated with coal.”