Aboitiz Power Corporation, the holding company for all energy-related investments of the Aboitiz Group, will launch a feasibility study of co-firing ammonia on coal plants in the country with JERA Co. Inc., Japan’s largest power generation company.
Ammonia does not emit carbon dioxide and can be mixed with coal at power plants to lower carbon emissions.
The group is also considering venturing into nuclear energy, particularly small modular reactors, as an alternative source of power.
AboitizPower Thermal Power Generation Group chief operating officer Felino Bernardo said Thursday the study will start next year to reduce carbon emissions during thermal power generation.
However, he pointed out that before co-firing can be considered feasible in the Philippines, technology and the supply chain should first be developed.
As such, JERA will start a 20 percent ammonia generation demonstration test this year in Japan before taking steps to increase it to over 50 percent by 2028.
“Assuming everything goes well, we aim to get results within the decade. Hopefully, by 2030, the prices of ammonia will have already gone down, then we can do our test in one of our facilities,” Bernardo said.
Ammonia co-firing technology involves the replacement of some coal with ammonia as combustible fuel for power generation. While ammonia is easy to transport, its cost per metric ton is still high, currently at least twice the price of coal.
Notably, most of the ammonia supply in Japan is already being utilized for agricultural purposes. Hence, the necessity of strengthening is the logistics network of ammonia.
To date, AboitizPower has already started securing financial support for its ammonia co-firing feasibility study from METI, Japan’s Ministry of Trade and Industry.
Nuclear dev’t eyed
Meanwhile, Bernardo also reiterated that AboitizPower will explore the possibility of developing small modular reactors or SMRs to complement the country’s clean energy transition.
“I believe that nuclear power could be part of the Philippine energy mix. It’s just a matter of time. What’s important is that we make sure that we can plan and execute it safely. Safety is number one as far as nuclear technology is concerned,” Bernardo said.
“If the promise of SMR will come true, it’s going to be affordable as well,” he added but noted how it will also require decades before costs and, hence, prices are lowered.
AboitizPower is expanding its RE portfolio to 4,600 megawatts or MW, resulting in a 50:50 balance between its RE and thermal capacities by 2030.
To date, AboitizPower has a pipeline of more than 1,000 MW of RE projects, including developing wind, solar farms, and geothermal plants.