Manila: The Department of Energy (DOE) is considering the establishment of a coal-blending facility to increase the use of locally produced Semirara coal in Philippine power plants, aiming to reduce the nation's significant reliance on imported coal.

According to Philippines News Agency, Energy Secretary Sharon Garin revealed during a Senate budget hearing that many of the existing coal plants in the Philippines are optimized for Indonesian-grade coal, which restricts their ability to use locally sourced coal directly. Garin noted, "We're trying to study that. That's why we've been discussing about having a terminal or a coal blending facility here."

The proposed facility would blend Philippine coal with other grades to create a fuel compatible with the current power plants, thereby expanding the domestic market for Semirara coal. Garin emphasized the importance of domestic utilization, stating, "Dapat yung coal natin as much as possible, we use it domestically (As much as possible, we should use our coal domestically)."

DOE data highlights that in 2023, Indonesia supplied 98.8 percent of the Philippines' coal imports, while Semirara contributed significantly to local production. Despite this, most local coal plants require higher-grade coal, which explains the continued dependence on imports.

The issue was brought to the forefront by Sen. Erwin Tulfo, who questioned the rationale behind exporting locally produced coal while the country's power generators continue to import the majority of their coal needs. He inquired, "Bakit hindi natin gamitin yung coal ng Semirara (Why don't we use Semirara's coal)?"

Garin responded by explaining that even if all of Semirara's production were used domestically, it would only fulfill about 10 percent of the country's coal requirements. However, the development of the proposed blending facility could enhance the use of local coal and bolster the nation's fuel security.