Atimonan One Energy Inc., a subsidiary of Meralco PowerGen Corp., dropped its plan to put up a coal-fired power plant in Quezon province and will instead construct a 2,400-megawatt combined cycle gas turbine power project and liquefied natural gas terminal with floating storage unit at a cost of P175 billion.
A1E previously proposed a 1,200-MW ultra-supercritical coal-fired power plant of high efficiency-low emission in the project site in Atimonan, Quezon which did not push through amid lack of a power supply agreement and opposition from environmental groups
The company said, however, in documents submitted to the Department of Environment and Natural Resources for environmental impact assessment, the project would be converted into a cleaner option—a CCGT power plant using natural gas as fuel and delivered via an LNG carrier and LNG terminal.
The power plant will be constructed in two phases of 1,200 MW each phase. The power output will be transmitted to the Luzon grid via a 23-kilometer, 500-kV transmission line to the New Pagbilao substation.
It said the environmental compliance certificate for the transmission line issued for the previously proposed coal plant on May 27, 2016 woud be amended for the proposed project in Barangay Villa Ibaba, Atimonan.
The project involves the construction of the power plant consisting of gas turbines, heat recovery steam generators, steam turbines, generators and balance of plant facilities and a LNG terminal which will include LNG buffer tanks and regasification facilities, floating storage units and mooring and unloading jetty.
It will also cover the construction and operation of jetty, accommodation facilities, administrative offices, warehouse, workshop, laboratory and switchyard.
A1E aims to begin construction of phase 1 of the project within the third quarter. Phase 1 is expected to be completed by the first quarter of 2026.
Phase 2 is targeted to be completed in three years, providing additional capacity in anticipation of growing power demand due to robust economic growth post-Covid pandemic.
The project is estimated to generate 3,000 to 4,000 jobs during the construction period.
“The project is committed to global sustainability efforts to avert global climate change and support government’s goal of low carbon future and energy transition that hinges on the development of cleaner energy sources and will gradually reduce the country’s reliance on fossil-based fuel,” A1E said.