The Energy Department is investigating reports the Environment Department has asked San Miguel Corp. to stop operating its coal-fired power plant in Limay, Bataan.
“We are investigating. I’m having things checked first,” Energy Secretary Alfonso Cusi said.
Reports were initially circulating that the coal power plant of San Miguel and Petron Corp. in Limay caused an ash spill, affecting the health of residents in the area.
“Not true news,” San Miguel president Ramon Ang said when asked about the Environment’s plan to shut down the plant.
Ang was quoted in a TV news that the San Miguel and Petron were merely helping in the clean-up operations.
Petron’s 180,000 barrel-per-day refinery is located in Limay, Bataan.
“Our ash pond is located within our facility and near our offices. It has the necessary regional and local permits from the (Envirobnment), is surrounded by dikes, and regularly watered to prevent dispersion,” Petron said.
Petron said ash from the pond, certified by Environment as non-hazardous, “will be used as raw material for our cement manufacturing plant.”
“Thus, reports of ash spill and tons of ash found along the coastline of a distant river, which is almost a kilometer away from our facility, is far from the truth,” Petron said.
The company invited concerned stakeholders from both media and the government to visit its facility.
“We want to show you a side of this whole story, that we believe, would make it complete and accurate. Nevertheless, we assure that we will continue to assist the residents and work with the (Environment) and the municipality to do what is right and necessary,” the company said.
Petron in December completed the acquisition of the 140-megawatt solid fuel power plant of SMC PowerGen Inc. in Bataan for P20.029 billon.
“The purchase of the power plant would lower the power and steam costs of the Petron Bataan Refinery,” Petron said earlier.
Petron paid SMC PowerGen P15.966 billion on Dec. 23, 2016, with the balance of P4.06 billion to be settled on or before July 31, 2017.
“The funds for the purchase of the power plant are from internally generated funds and through credit facilities secured by the company to fund the purchase of the power plant,” Petron said.
SMC Power Gen used the power plant for the production of power and steam, while Petron plans to devote the power plant for the same purpose.
The 140-MW power plant started commercial operations in May 2013 and availed of the income tax holiday from May to September 2013.
San Miguel is separately undergoing testing and commissioning of the first phase of the new 300-megawatt coal plant in Limay, Bataan.