The Department of Energy (DOE) is exploring a coal-blending facility that could allow more locally produced Semirara coal to fuel Philippine power plants and reduce the country’s heavy dependence on imports.

Energy Secretary Sharon Garin told a Senate budget hearing Thursday that many existing coal plants were designed for Indonesian-grade coal, limiting their ability to directly substitute locally mined fuel.

“We’re trying to study that… That’s why we’ve been discussing about having a terminal or a coal blending facility here,” Garin said.

She said blending Philippine coal with other grades could produce fuel compatible with existing plants while creating a larger domestic market for Semirara output.

“Dapat yung coal natin as much as possible, we use it domestically (As much as possible, we should use our coal domestically),” Garin said.

DOE data show Indonesia supplied 98.8 percent of Philippine coal imports in 2023, while Semirara accounted for the bulk of domestic production. The department said most local coal plants require higher-grade fuel, helping explain continued dependence on imports despite domestic production.

Sen. Erwin Tulfo raised the issue after questioning why locally produced coal continues to be exported while power generators import most of their requirements.

“Bakit hindi natin gamitin yung coal ng Semirara (Why don’t we use Semirara’s coal)?” Tulfo asked.

Garin said using all Semirara production domestically would still supply only around 10 percent of the country’s coal requirement, but the proposed blending facility could help widen its use and strengthen fuel security. (PNA)