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DOE mulls B55 fuel blend policy for repurposing of diesel plants

Published Sep 3, 2024 06:21 am

At A Glance

  • There are major concerns that are still being weighed at this point relative to that policy proposition – one would be the sustainability of feedstock for the relatively high biodiesel requirement of these generating assets, given the fact that the biodiesel blend for the country's transport sector will also be increased by this year; and the other delves with the capacity off-take or power supply agreement.

The Department of Energy (DOE) is currently studying a policy for the repurposing of diesel-fired power plants by integrating biofuel blend of as much as 55% (or B55) by volume, according to Energy Undersecretary Felix William B. Fuentebella.

“We’re developing a strategy for B55 to enable the continued operation of diesel power plants,” the energy official conveyed.

He, nevertheless, noted there are major concerns that are still being weighed at this point relative to that policy proposition – one would be the sustainability of feedstock for the relatively high biodiesel requirement of these generating assets, given the fact that the biodiesel blend for the country’s transport sector will also be increased by this year.

Fuentebella said there is also a need to work collaboratively with power utilities, primarily the Manila Electric Company (Meralco), as major off-taker (capacity buyer) of the generated electricity of these plants that will be fed with high biodiesel content.

“We need to talk to Meralco on this because what we’re looking at on the policy side is how to repurpose or transition the diesel plants,” he stressed.

On feedstock availability, Fuentebella emphasized that the sources or raw materials would have to be re-assessed; although he cited that there are only very few generating assets now that are running on diesel.

If the propounded policy would turn out feasible, he indicated that a candidate plant for repurposing that could be considered will be the 150MW Ingrid diesel plant of ACEN Corporation of the Ayala group.

He stated that based on information relayed to the energy department, that Ayala-operated plant “can prospectively run on 100% biodiesel, so we’re looking at that.”

On the realm of carbon intensity across power generation technologies, the diesel plants are generally perceived as ‘ticking time bomb’ that could aggravate humanity’s dilemma with global warming risks.

In the case of the Philippines – primarily in off-grid sites, total decommissioning of diesel-fired generation can’t still be done easily because these facilities still serve as the major source of electricity service of consumers in these areas.

There is a pitch for seismic shift to renewable energy (RE) installations at these off-grid domains, but the intermittency of solar and wind technologies in particular, would still not make these alternatives as all-inclusive solution at this point. 

 

 

Related Tags

Department of Energy (DOE) biodiesel blend Manila Electric Company (Meralco) energy transition strategy diesel plants
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