First Gen Corp. of the Lopez Group is preparing its natural gas plants to run on other emission free-fuel such as hydrogen once it becomes economically viable, its top executive said.
“This early though, we are looking at new technologies and alternative fuels to repower our natural gas plants, consistent with our own commitment to Net Zero by 2050,” Federico Lopez, First Gen chairman said at the sidelines of a recent forum hosted by the Net Zero Carbon Alliance (NZCA).
First Gen owns and operates in Batangas four natural gas-fired power plants with 2,017 megawatts of combined capacity, making the company the owner of the country’s biggest fleet of gas plants.
It also plans to develop in Batangas another gas-fired plant with 1,200-MW capacity.
He said the process of producing hydrogen was getting cheaper, and the company was preparing for the time when hydrogen’s cost would become competitive.
“As it [falling hydrogen price] comes you will be able to do it; [so] you prepare for it,” he said.
He said there is no immediate plan to use or blend hydrogen to its gas plants because hydrogen is “expensive today; so, we probably wouldn’t do it today.”
Lopez said that if First Gen would put up new gas-fired power plants, “it will make sure that these plants can at some point in the future run on 100 percent carbon-free fuel.”
He said First Gen was also working with equipment suppliers for ensure the power plant’s flexibility and extend its shelf life beyond 2050.
“Natural gas has the ability to do two things: it can generate a kilowatt-hour with half the emissions of a coal plant. Secondly, as more and more [REs] come into the grid, [which are] intermittent, you will need to have power plants that can ‘load follow,’ [or] that can ramp up and down very quickly. Natural gas can do that; coal cannot,” Lopez said.
Lopez reiterated First Gen’s stance that natural gas plays a role only during the energy transition period.
“[Natural gas-fired] plants are probably the best bet for shepherding this transition. [But] they should not be there forever, and at some point we should really be able to take them down or utilize fuels, say like hydrogen to be able to power them,” he said.
