February 21, 2023

Photo: Bacolod City Mayor Alfredo Abelardo Benitez (right) with officials of China-based Jiangsu Fengchuen New Energy Power Technology Co. Ltd., who arrived in the city earlier this month. On Monday (Feb. 20, 2023), Benitez said they are studying the firm's formal proposal to establish an electric-vehicle manufacturing plant in the city. (Video grab from Albee Benitez Facebook page)

A Chinese firm has submitted a formal proposal to the city government to establish an electric (e)-vehicle manufacturing plant in a still undisclosed area here.

"This is an offshoot of our trip to China," said Mayor Alfredo Abelardo Benitez in a press briefing on Monday.

Benitez, who first met with the investors when he joined President Ferdinand Marcos Jr.'s state visit to Beijing in January, said they have received a draft copy of a memorandum of understanding from Jiangsu Fengchuen New Energy Power Technology Co. Ltd., which is eyeing to invest USD200 million for the proposed project.

"We are reviewing their proposal. They are very serious. There's a document that they submitted (to us), a formal proposal. In fact, I might be meeting with them tonight to expand on this proposal," he added.

Benitez said the company needs assistance for the establishment of e-vehicle charging stations.

"They are planning to enter first our public transportation system. In China, public transportation is mostly, if not a hundred percent, electric vehicles now, in response to the quest for a sustainable and renewable industry," he added.

The mayor said that Jiangsu Fengchuen New Energy Power Technology Co. Ltd. will bring in test units to the city.

"We have to see first-hand if what they said in the presentation is what will really happen. If that happens, we can probably promote the conversion into e-vehicle," he added.

For the vehicle's look or design, the firm has proposed to preserve the cultural identity of Filipino public transport as such the e-vehicle will resemble the Philippines' iconic "Sarao" jeepney.

"These are all proposals. The City Council is studying the formal proposal. Aside from this, I would like to see a proof of concept. Once proven beneficial to our stakeholders, especially to our operators, then we can probably consider helping out into making the program a reality," Benitez said.

The firm's officials arrived in the city earlier this month to hold their first meeting with Benitez.

 

Article courtesy of the Philippine News Agency

February 16, 2023

Photo credit: Malampaya gas field 

Fitch Solutions said the Philippines’ gas consumption outlook remains bullish but the administration’s aggressive push for renewable energy (RE) poses downside risks to natural gas consumption in the power sector.

In a commentary released to the media on Wednesday, Fitch Solutions said the country’s gas consumption between 2010 and 2021 averaged 3.5 billion cubic feet (bcf) to 4.4 bcf.

“The outlook for gas consumption remains bullish both reference and clean energy scenarios (CES),” it said.

Under the Philippine Energy Plan 2022-2040, the government aims to expand the gas-fired power-generating capacity to 24.3 gigawatts (GW) in the reference scenario and to 18.9 GW in CES from the current capacity of 3.45 GW.

It added that with the Department of Energy’s (DOE) approval of seven gas-fired power plants with a combined capacity of 7.1 GW, the country’s demand for liquefied natural gas (LNG) from the power sector could go up to 6 million tons per year.

The demand excludes requirements from the existing five power plants that source gas from the Malampaya gas field project.

Also, 10 proposed gas-fired power projects have yet to be approved. They have a total capacity of 8.8 GW.

With the expected depletion of the Malampaya gas field next year, Fitch Solutions said the Philippines will become reliant on LNG imports for power generation starting in 2025.

This year, some LNG import terminals will start their operation to supply the gas demand.

However, Fitch Solutions said the administration’s ongoing energy policy that favors renewable sources could pose significant downside risks to natural gas consumption in the power sector.

“Overall, the outlook for LNG imports remains bullish, but the future role of LNG in the power sector could be at risk if the incumbent Marcos government, which views natural gas as a transition fuel, invokes a change in current energy plans,” it said.

In the long-term energy plan, the government aims to expand renewable power capacity from 7.6 GW in 2022 up to 53.2 GW in the reference scenario and 81.5 GW in the CES.

Several reforms were also made in the first six months of the Marcos administration to lure investments in the RE sector. By Kris Crismundo

 

Article courtesy of the Philippine News Agency

February 14, 2023

Photo: (seated from left) Senator Mark Villar, House Speaker Martin Romualdez, Former President Gloria Macapagal-Arroyo, Philippine President Ferdinand R. Marcos Jr., Department of Trade and Industry Secretary Alfredo Pascual, Special Assistant to the President Antonio Lagdameo Jr., together with AboitizPower Chairman Sabin Aboitiz and JERA President Satoshi Onoda (standing).

On Friday, February 10, Aboitiz Power Corporation (AboitizPower), the holding company of power-related investments of the Aboitiz Group, signed a memorandum of understanding (MOU) with JERA Co., Inc. (JERA), Japan’s largest power generation company, to jointly assess the potential for greener fuels. The MOU signing was done in the presence of President Ferdinand “Bongbong” R. Marcos Jr. together with key officials from the Philippine Government.

Under the MOU, AboitizPower and JERA commit to collaborative efforts in assessing the feasibility of ammonia co-fired power generation and further development of the ammonia and hydrogen value chains in the Philippines. This will support the decarbonization efforts of AboitizPower and the Philippines, with long-lasting effects that will benefit the entire world.

The MOU was signed by AboitizPower Chairman Sabin Aboitiz and JERA President Satoshi Onoda.

Together with its partners, AboitizPower is the Philippines’ largest owner and operator of renewable energy (RE) based on installed capacity. Through this recent undertaking, AboitizPower continues to lead the country’s transition to a sustainable future with its commitment to the research and generation of renewable energy. Its impact will be felt beyond energy stability and emission reduction, as the collaboration brings about the potential of developing the Philippines as a hub and leader in the region for greener fuels.

“By joining forces in the pursuit of greener fuels, our two companies are not only advancing the cause of sustainability, but also paving the way for a cleaner and more vibrant future. Ammonia offers a compelling solution for decarbonizing the power sector, and by looking into it, we are taking a step towards developing the infrastructure needed to support the ammonia and hydrogen value chains,” said AboitizPower Chairman Sabin Aboitiz.

JERA operates in more than 10 countries with a total portfolio of 80 gigawatts (GW), achieved through its expertise in RE and zero-emission thermal power generation using ammonia and hydrogen. This recent MOU leverages JERA’s wealth of knowledge and experience to effectively fuel the decarbonization and sustainability efforts of AboitizPower and the Philippines. This is in line with JERA’s mission to provide cutting-edge solutions to the world’s energy issues and its vision of being a global leader in LNG and renewables to spark the transition to a clean energy economy.

Around the world, there have been increasing developments in the use of large-scale hydrogen production projects for renewable energy and natural gas. Similar to hydrogen, ammonia is an alternative fuel that does not emit any carbon dioxide when it is burned. As it is easier to handle than liquified hydrogen, it is expected to be used as a hydrogen energy carrier. Through research and development between AboitizPower and JERA, there may be a significant reduction in costs in clean power generation by promoting industrial utilization and building a large-scale value chain.

“JERA is focused on providing cutting-edge solutions to the world’s energy issues and strengthening the value chains for greener fuels such as ammonia and hydrogen. Through this collaboration, we will support Aboitiz's power decarbonization efforts while also considering additional opportunities for advancing technology development in the Philippines. This MOU allows JERA to leverage its experience and capabilities to support both Aboitiz power and the Philippines to reach their emissions targets. We are going to share the Realization of a Low-Carbon Society as a Global Leader Laying the Foundation for the Future of Energy,” said JERA President Satoshi Onoda.

If the technology is applied to existing coal-fired power plants, where appropriate, carbon dioxide emissions may be reduced by up to 50 percent. There will also be a significant economic impact on the Philippine economy with the introduction of these technologies, from the construction of import terminals, storage facilities, power station retrofits, and the like.

As the Aboitiz Group undergoes its Great Transformation to become the Philippines’ first Techglomerate, it is investing in innovation and technology aligned with its sustainability vision.

JERA has been a strategic partner of AboitizPower since 2021, when the Japanese firm fully acquired a 27 percent stake in AboitizPower (which included a 1.99% stake from the Aboitiz family’s privately held parent company, Aboitiz & Company), unlocking international capabilities and expertise. Their partnership is focused on the exploration of new-generation technologies, helping AboitizPower achieve its 10-year renewable energy expansion to increase its capacity by 3,700 megawatts (MW) of renewable energy by 2030.

 

Article courtesy of the Philippine Stock Exchange

February 14, 2023

Photo: (Seated, L-R) Senator Mark Villar, House Speaker Martin Romualdez, Senior Deputy Speaker and Former President Gloria Macapagal-Arroyo, Philippine President Ferdinand R. Marcos Jr., Department of Trade and Industry Secretary Alfredo Pascual, Special Assistant to the President Antonio Lagdameo Jr., and Philippine Ambassador-designate to Japan Mylene Garcia-Albano, together with (standing, L-R) AboitizPower Chairman Sabin Aboitiz, Amber Kinetics Chief Executive Officer Edgar Chua, IKS Co. Ltd. President Takashi Imai, and Kawasaki Heavy Industries’ Senior Managing Executive Officer and President of Energy Solution and Marine Engineering Tatsuya Watanabe.

As the country needs all forms of energy to fuel its growth aspirations while transitioning to an affordable and sustainable energy future, Aboitiz Power Corporation (AboitizPower), the holding company of power-related investments of the Aboitiz Group, has signed a memorandum of understanding (MOU) to lead a Philippines-Japan Consortium that will explore the development of technology and an integrated system for potential projects in the field of renewable energy.

On Friday, February 10, the MOU was signed by AboitizPower, represented by its Chairman of the Board Sabin Aboitiz, Kawasaki Heavy Industries, Ltd., represented by its Senior Managing Executive Officer and President of Energy Solution and Marine Engineering Tatsuya Watanabe, IKS Co. Ltd. (IKS), represented by its President Takashi Imai, and Amber Kinetics, represented by its Chief Executive Officer (CEO) Edgar Chua.

Under the MOU, the parties will leverage their respective new-generation technologies and expertise to optimize renewable energy development in the Philippines while contributing to energy cost savings and grid stability. This may lead to further exploration and expansion beyond the Philippines to ASEAN, Japan, and Australia.

“With this consortium, the Philippines and Japan can make a significant impact on our transition towards a more sustainable future. Our partnerships represent a powerful alliance that will drive technological innovation and harness the power of renewable energy to create a brighter future for generations to come,” said Mr. Aboitiz

The consortium also expressed optimism in exploring opportunities and making a positive impact on the local and regional energy landscape.

“Ten years ago, Kawasaki started up the iVSG project in expectation of the recent energy trend. Now, we must be faced with a large amount of renewable energy penetration to a power system and a sharp increase in fossil fuel prices,” Watanabe narrated.

“I trust Virtual Synchronous Method will be a breakthrough solution to the problem. We are excited to work with Amber Kinetics, IKS and Aboitiz Group, and look forward to working together to deliver advanced technologies that would help the Philippines transition to more renewable energy,” Watanabe added.

Meanwhile, Imai said, “We are pleased with our contribution to stabilize the energy supply in the Philippines with IKS’s technology joining this partnership.”

AboitizPower is currently in the process of a 10-year renewable energy expansion to increase its renewable energy capacity by 3,700 megawatts (MW) by 2030. As renewable energy sources become more prominent in the power generation and distribution systems, grid stability issues become more pronounced and must be addressed. The issues are not, however, insurmountable.

As the Aboitiz Group undergoes its Great Transformation to become the Philippines’ first Techglomerate, it is investing in innovation and technology aligned with its sustainability vision. To address the grid stability issues caused by the greater prominence of renewable energy in the energy mix, AboitizPower is partnering with pioneering firms Kawasaki Heavy Industries, IKS, and Amber Kinetics under the Philippines-Japan consortium to develop technology-enabled solutions.

Kawasaki Heavy Industries channels its engineering prowess into trustworthy solutions for the future, including the use of virtual synchronous generator (VSG) technology. VSGs mimic the operation characteristics of traditional synchronous generators but with the former resulting in a more stabilized grid frequency.

The company plans to engage in businesses with inverters, Flywheel Energy Storage System (FESS), and power generating and distribution companies. In doing so, it will establish an integrated system that will enable ancillary services applications that provide grid stability working in consonance with renewable energies, power generation, and turbines as a distributed energy resource and by cooperating with other parties in micro-grids.

Kawasaki Heavy Industries will be joined by fellow Japanese firm IKS with its cutting-edge power control system (PCS), I_DENCON technology inverters. IKS aims to co-develop an integrated system that will easily allow other devices to connect and function seamlessly

Alongside them will be Amber Kinetics, a Silicon Valley firm that has developed long-duration FESS technology, which converts electricity into kinetic energy stored in the mass of spinning flywheels. It wants to further develop integrated energy solutions for its applications.

The MOU provides a platform for the consortium to work together with their proprietary technologies on projects that have the potential to transform the renewable energy landscape and drive sustainable economic growth in the Philippines, and throughout the region.

 

Article courtesy of the Philippine Stock Exchange

February 14, 2023

Photo credit: Ratio Petroleum

The Department of Energy (DOE) bared Thursday that Israeli firm Ratio Petroleum, the operator of Service Contract (SC) 76, has found prospective oil and gas deposits in the north part of East Palawan Basin as a result of its exploration within the block.

“Ratio Petroleum, the operator of SC No. 76, has identified two possible petroleum plays with over 20 leads delineated within their contract block following the completion of the first phase of their work program in October 2020,” DOE said in a statement.

A play pertains to a group of oil fields while a lead is a subsurface with the potential to have entrapped oil or natural gas.

“Ratio Petroleum’s initial work program has resulted in the identification of numerous leads that emphasize the prospectiveness of the basin. Several leads show clear anomalies, which supports the concept of the basin being gas-prone,” DOE Undersecretary Alessandro Sales said.

The DOE awarded SC 76 to the Israeli petroleum exploration and development firm in October 2018, with an initial investment of USD34.35 million for its studies, data gathering and drilling within its seven-year contract.

Ratio Petroleum’s work program in the SC 76 will be in three phases, which include the acquisition of 2D seismic data, the acquisition of 3D seismic data and drilling of one of the wells.

“As the company is seeking a partner to participate in unlocking the basin’s potential at the early stages of exploration, this would be an opportunity for interested parties to take part in the next phase of planning and acquiring 3D seismic data, which will further define the full potential of SC 76,” Sales said.

He said that with the depleting gas reserves in Malampaya natural gas field, the country should reinvigorate petroleum exploration activities.

“While it is capital-intensive to carry out exploration programs, with the depletion of the Malampaya reservoir and the continuing volatility of fossil fuel prices in the past years, we need an aggressive push to explore for new oil and gas fields for the furtherance of our energy security,” he added. 

 

Article courtesy of the Philippine News Agency

February 14, 2023

As the government turns aggressive in luring renewable energy investments, Citicore Renewable Energy Corp. (CREC) is ramping up its solar energy targets for the next five years.

The firm plans to launch 5,000 megawatts (MW) of solar power projects in the next five years from its initial target of 1,500 MV for the same period because of the country’s growing power requirement.

“We are upgrading our pipeline projects from originally 1.5 gigawatts, or 1,500 MW, and the target is to break ground 1 GW of new projects this year. So, meaning, by early next year, we will have almost 1.25 GW of installed capacity,” CREC president and chief executive officer Oliver Tan said in an interview over the weekend.

He said the projects will generate between PHP7 billion and PHP8 billion on the company’s top line.

Tan added that CREC is allocating USD800 million in capital expenditure (capex) this year to fund the new projects, which are expected to be completed by early 2024.

Majority of the capex this year will be spent on its 600-MW solar project in Batangas, he added.

Aside from expanding its solar power portfolio, Tan said CREC is also investing in battery energy storage system this year.

He added that investments in energy storage system are critical to accelerate and smoothen the transmission of output coming from renewable energy projects.

“We have a good policy in supporting our renewable energy,” Tan said. “What the government needs to support will be the development of energy storage technology.”

With its new targets for the medium term, CREC is expected to invest USD4 billion to fund its 5,000-MW solar power projects in five years.

To fund these projects, CREC will go public this year but Tan declined to divulge other details yet.

January 30, 2023

Photo credit: DOE

The Department of Energy (DOE) said on Friday that it issued a notice to proceed (NTP) for the UD67-million liquefied natural gas (LNG) terminal project of Samat LNG Corp. in Barangay Sisiman in Mariveles, Bataan to supply the country's increasing power demand.

The DOE said Secretary Raphael Lotilla signed the NTP in favor of Samat LNG and that the company should comply with the requirements in 12 months from the date of the NTP issuance to proceed with the construction of the LNG terminal.

The new terminal will have a capacity of importing 200,000 to 400,000 tons of LNG annually.

"It is expected to supply LNG to small-scale independent power producers, manufacturing companies, and transport fleets. The LNG will be distributed to its customers by a dedicated fleet of LNG trucks, small LNG vessels, and barges within its neighboring regions," the agency said.

The company targets to begin the commercial operation of the LNG terminal by the first semester of 2024.

DOE added there are currently six ongoing LNG terminal projects developed by Linseed Fiel Corp., FGEN LNG Corp., Luzon LNG Terminal, Inc., Energy World Gas Operations Philippines, Inc., Shell Energy Philippines, Inc. and Vires Energy Corp.

"The DOE has already put in place the regulatory framework and completed its downstream natural gas development plan to guide policymakers and stakeholders for the entry of LNG in the country," it added.

The DOE said the country is expected to consume natural gas of at least 24,263 megawatts by 2040 in the reference scenario (RES) and 18,883 MW in the clean energy scenario.

It said the demand for LNG is mainly driven by the initiatives of replacing coal and oil-based fuels in power generation.

"Foremost, the government's concern is to ensure enough capacity is supplied through various sources, especially in the coming summer months, to sustain the power supply in the country," it added.

January 19, 2023

Photo credit: Department of Foreign Affairs Facebook Page

The Department of Foreign Affairs (DFA) on Thursday said it is in the process of setting the parameters which would guide future negotiations on oil and gas.

In a message to reporters, the DFA disclosed that it is carefully studying the Supreme Court decision on the Joint Marine Seismic Undertaking.

Earlier, the Supreme Court declared a 2005 agreement which allowed China and Vietnam to perform a joint exploration with the Philippines for oil resources in areas under the country’s jurisdiction in the West Philippine Sea as void and unconstitutional.

“The Department’s actions and policy recommendations are, at all times, anchored on the Philippine Constitution and laws,” DFA Spokesperson Teresita Daza said.

“Cases decided by the Supreme Court form part of the legal system, and the Department is duty-bound to take applicable cases into consideration in any future discussion with China on oil and gas,” she added.

Daza noted that it was premature to discuss the case’s legal implications on any future agreement with China because substantive discussions have yet to commence.

During President Ferdinand R. Marcos Jr.’s recent visit to Beijing, he has agreed with Chinese President Xi Jinping to resume joint oil and gas discussions in the West Philippine Sea at an early date “with a view to benefiting the two countries and their peoples”.

In a joint statement, both countries agreed to "bear in mind the spirit" of the Memorandum of Understanding on Cooperation on Oil and Gas Development between the Government of the People’s Republic of China and the Government of the Republic of the Philippines which was signed in 2018.

 

Article courtesy of the Philippine News Agency

January 19, 2023

Photo: Senator Sherwin Gatchalian

Senator Sherwin Gatchalian emphasized on Friday that the possibility of a joint oil exploration between China and the Philippines in the West Philippine Sea (WPS) would only materialize if the east Asian country recognizes the Philippine Constitution.

"Our Constitution should be the enabling document, and that's our minimum standard and if China cannot follow that, then this is where the complexity will come in," Senator Sherwin Gatchalian said in an interview with ANC.

Gatchalian's statement came after the Supreme Court on Tuesday declared as unconstitutional the 2005 agreement on joint exploration by the Philippines, China, and Vietnam of an area in the disputed South China Sea.

Gatchalian explained that although the SC ruling upholds the country's right to be in charge of its territory, it would only bring more complexity to the situation as China would not also drop its territorial claims on WPS.

"What our country and China want to do is to study all the complications and study how to move forward but then again, the Supreme Court decision sets the parameters on what they should be looking at, and it becomes the minimum requirement for any joint exploration moving forward," Gatchalian said.

"I'm not so optimistic that we can move forward with this joint exploration. It's good that we are talking. It's good that we are open to it. But when you go to the nitty gritty of things, especially the governing law that should prevail. I think we will hit a snag with that issue, and I think that the best case here or the best evidence will be what was discussed during the last administration," he added.

The administration of then President Rodrigo Duterte, he said, had been in talks with China about the exploration for four years and yet, no actual agreement has been reached.

“Obviously, after four years, nothing happened and obviously, it's more complex than what they thought and obviously, there are a lot of things that they cannot agree on," the lawmaker said.

One of the things that the two countries could not agree on, Gatchalian said, is which law should govern the joint exploration.

During the recent state visit of President Ferdinand R. Marcos Jr. in China, he and Chinese President Xi Jinping both agreed to resume discussions on oil and gas development.

Chinese foreign ministry spokesperson Wang Wenbin said that both leaders had talked about the Memorandum of Understanding on Oil and Gas Development signed in 2018, assuring that the upcoming discussions would be “building upon the outcomes of the previous talks.”

 

Article courtesy of the Philippine News Agency

January 09, 2023

Chinese President Xi Jinping and President Ferdinand R. Marcos Jr. (File photo courtesy of Bongbong Marcos Facebook page)

The Philippine and Chinese governments have agreed to resume talks on oil and gas exploration in the South China Sea at an "early date" following the bilateral summit between President Ferdinand R. Marcos Jr. and Chinese President Xi Jinping on Jan. 4.

In a joint statement, the Department of Foreign Affairs and the Chinese Foreign Ministry said discussions would build upon the outcomes of the previous negotiations during the Duterte administration, "with a view of benefiting the two countries and their peoples."

"On oil and gas cooperation, both sides agreed to bear in mind the spirit of the Memorandum of Understanding on Cooperation on Oil and Gas Development between the Government of the People’s Republic of China and the Government of the Republic of Philippines signed in 2018, and agreed to resume discussions on oil and gas development at an early date," the statement read.

The two parties also agreed to explore cooperation in areas of solar power, wind energy, electric vehicles and nuclear energy for electricity generation, among others.

Talks on a possible oil and gas exploration in the South China Sea were terminated during the time of former President Rodrigo Duterte over constitutional constraints.

After repeated requests from China, both sides eventually held an "initial discussion" in July and August for the possible revival of negotiations.

The public is assured that any agreement that would come out from the discussions would be "in accordance with the Philippine Constitution".

The 1987 Constitution states that the exploration, development, and use of natural resources should be under the "full control and supervision" of the Philippine government.

'Not the sum total'

Meanwhile, Marcos and Xi agreed to appropriately manage the South China Sea row through peaceful means as they emphasized that maritime issues "do not comprise the sum total of relations" between Manila and Beijing.

Both sides reaffirmed the importance of maintaining and promoting peace and stability in the region and the freedom of navigation in and overflight above the South China Sea.

The two leaders, the joint statement said, had also "reached consensus on the peaceful resolution of disputes" on the basis of the Declaration on the Conduct of Parties in the South China Sea, the United Nations Charter and the 1982 United Nations Convention on the Law of the Sea. 

Stronger maritime cooperation between Manila and Beijing is also expected as both parties agreed to collaborate closely on the mitigation of marine debris and microplastics and towards the establishment of a partnership between coastal model cities of the two countries.

During the summit, Marcos and Xi made a commitment to further strengthen the China-Philippines relationship of Comprehensive Strategic Cooperation under new circumstances, "as close neighbors, kin and partners that help and understand each other towards win-win results".

 

Article courtesy of the Philippine News Agency

December 07, 2022

Photo credit: Department of Public Works and Highways

Filipino and Japanese experts are working to better prepare the Philippines from threats of climate change by discussing strategies on how to mitigate the adverse effects of flooding.

The Department of Public Works and Highways (DPWH), through its Unified Project Management Office – Flood Control Management Cluster (UPMO – FCMC) headed by Project Director Ramon A. Arriola III, partnered with Japan’s Ministry of Land, Infrastructure, Transport and Tourism – Water and Disaster Management Bureau (MLIT – WDMB) in organizing a seminar titled “Seminar on Climate Change Perspectives in Managing Rivers and Floods”.

Aside from MLIT and DPWH, also present during the seminar were representatives from the Department of Environment and Natural Resources – Forest Management Bureau (DENR – FMB); DENR - National Mapping and Resource Information Authority (DENR – NAMRIA); Department of Science and Technology – Philippine Atmospheric, Geophysical and Astronomical Services Administration (DOST – PAGASA); Climate Change Commission (CCC); National Economic and Development Authority (NEDA); and National Irrigation Administration (NIA).

DPWH Assistant Secretary Antonio V. Molano, Jr., in his opening remarks, urged the participants to reflect on how to capitalize the diversity of functions and mandates of their respective agencies to assess and improve current climate change adaptation strategies of the Philippines.

The seminar at Bayview Park Hotel Manila served as a venue for participating Philippine agencies to further hone their existing knowledge in addressing climate change by learning from Japan’s experience and success in river and flood management as pointed out by the Embassy of Japan Minister Daisuke Nihei in his speech.

According to Minister Nihei, Japan’s achievements in climate change management are visible and integrated into ongoing disaster prevention projects and initiatives with the Philippines which includes the Pasig-Marikina River Channel Improvement Project Phase IV; Coastal Engineering Capacity Development for DPWH personnel; flood risk management projects in Cavite Industrial Area and Cagayan De Oro City; flood control master plan study in Davao City; and the feasibility study for the Parañaque Spillway Project.

The MLIT also outlined the extract of the Kumamoto Initiative for Water which is a joint statement and declaration to address water challenges and transformation towards a quality-oriented society avowed by 18 heads of states from Asia and the Pacific during the 4th Asia-Pacific Water Summit (APWS) last April 2022.

For its part, DPWH UPMO – FCMC presented its Flood Risk Management Master Plans while the DPWH Bureau of Design (DPWH – BOD) detailed its flood control planning design responsive to climate change.

Other topics discussed at the seminar included the “Observed Climate Trends and Projected Climate Change in the Philippines” by DOST – PAGASA; “Sea Level Rise: Is It Climate Change of Land Subsidence?” by DENR – NAMRIA; “Climate Change Programs and Policies in the Philippines” by CCC; and “National Greening Program Towards Climate Change Mitigation and Adaptation” by DENR – FMB.

 

Article courtesy of the Department of Public Works and Highways

December 02, 2022

President Ferdinand R. Marcos Jr. on Thursday expressed readiness to partner with China for possible joint oil exploration in the West Philippine Sea (WPS).

In a media interview in Quezon City, Marcos broached the idea of exploring other ways to ensure the immediate development of oil and gas resources in the contested waters.

Marcos made the remark, in case the possible government-to-government partnership fails to proceed.

"We'll have to find a way kasi kailangan na natin eh (we really need it now). We already need, kung mahanap dyan kailangan na talaga ng Pilipinas (whatever resources we could find because the Philippines really need that now)," he said on the sidelines of the Kadiwa ng Pasko Caravan.

"'Yung China maliit na bagay sa kanila 'yun eh. Sa atin malaking bagay 'yan. So, kailangan natin ipaglaban at mapakinabangan kung meron ngang oil talaga (It's a small thing for China. But for us, it's a big help. So, we have to pursue that and we will benefit if there is really oil there)," he added.

Marcos also stressed the importance of addressing the "roadblock" in the joint exploration talks.

This, as he acknowledged the constitutional problems that caused delays in the possible joint exploration between the Philippines and China.

"Kasi kini-claim ng China kanila 'yun, eh atin naman talaga iyan. So, sinasabi ng Pilipinas, basta't 'yung batas kailangan masundan 'yung sa Pinas. Ang sinasabi naman ng Chinese, hindi, amin iyan eh, kaya't kailangan masundan is Chinese. Kaya 'yun talaga ang roadblock doon (China is claiming [WPS] as its property, but that is ours. For the Philippines' part, we have to follow the law. But the Chinese are saying that they own that and they want their own terms to be followed. That's the roadblock there)," Marcos said.

In November 2018, the Philippines signed a memorandum of understanding (MOU) with China on joint oil and gas development in WPS.

However, the Philippines, under the Duterte administration, terminated the talks before Marcos assumed presidency on June 30 because of constitutional constraints and issues on the country’s sovereignty.

The Department of Foreign Affairs in September this year said the two countries have so far made "initial and general discussions" on possible joint exploration in WPS but have not yet progressed to "working-level talks."

During their inaugural bilateral meeting in Bangkok, Thailand on Nov. 17, Marcos and Chinese President Xi Jinping agreed that the immediate conclusion of negotiations for the final and binding Code of Conduct (COC) in the South China Sea (SCS) will help address the maritime disputes among littoral states.

On July 12, 2016, the Philippines won its petition against China before the Permanent Court of Arbitration (PCA) in The Hague, Netherlands after the court invalidated Beijing’s supposedly historic rights over nearly the entire SCS, including the WPS.

China has repeatedly ignored the 2016 PCA ruling despite the Philippines’ historic win. By Ruth Abbey Gita-Carlos

 

Article courtesy of the Philippine News Agency

December 02, 2022

Photo: Philippine Nuclear Research Institute Director Carlo Arcilla. Credit: Philippine News Agency

The Philippines is open to nuclear energy negotiations with other countries aside from the United States, an official of the Philippine Nuclear Research Institute (PNRI) said Tuesday.

Currently, the country is in discussion with the US for the 123 Agreement, an agreement for cooperation as a prerequisite for nuclear deals.

"Before they (US) could export their nuclear expertise and technology, they have to seek clearance from the government. So this agreement is crucial since American companies could not export nuclear technologies and experts without this agreement," PNRI Director Carlo Arcilla said during the Laging Handa public briefing.

He cited that the US is the most experienced in nuclear energy since they have 92 working nuclear power plants, the highest number in the world.

These plants supply 20 percent of their power, according to Arcilla.

While he considers the US as the most experienced, Arcilla clarified that other countries are also experts and have interest to partner with the Philippines.

Among them is South Korea, which offered to revive the Bataan Nuclear Power Plant (BNPP).

Arcilla said the decision will be up to the President, and also noted that the deal will not require a 123 Agreement.

Other countries he mentioned for possible nuclear negotiations are France, China and Japan.

"(The 123 Agreement) does not lock us into the American negotiations only. We are also open to other countries. We should not set aside, however, America's experience. There are 450 nuclear power plants in the world, and almost 100 are in the US," he said.

Arcilla said it is also important that the government has a national position and policy on nuclear energy.

Early this year, former President Rodrigo Duterte issued Executive Order No. 164, which include nuclear power in the country’s energy mix.

President Ferdinand R. Marcos Jr. also pushed for the development of the country’s indigenous energy resources for energy security, improve access to power and promote clean energy. 

Meanwhile, Arcilla said the decision to revive the BNPP or to establish a new one would depend on the President and the Department of Energy.

"If we consider the technical aspect, (the BNPP) could still function, and South Korea has an offer, and they have a working model," he said. (With reports from Kris Crismundo/PNA) By Ma. Cristina Arayata.

 

Article courtesy of the Philippine News Agency

November 11, 2022

Photo: President Ferdinand R. Marcos Jr. presides over a meeting with Department of Energy officials at Malacañan Palace in Manila on Wednesday (Nov. 19, 2022). They discussed "immediate and medium-term" plans to improve the energy sector. (Photo courtesy of OP)

President Ferdinand R. Marcos Jr. has given his nod to the Department of Energy's plan to explore and develop the country's offshore wind (OSW) potential as a source of clean and sustainable energy, Malacañang announced Wednesday.

This developed, after Marcos presided over a meeting with DOE officials at Malacañan Palace in Manila on Wednesday morning to discuss "immediate and medium-term" plans to improve the energy sector.

"In a meeting at the Malacañan Palace on Wednesday, President Marcos instructed DOE Secretary Raphael P.M. Lotilla and other energy officials to move forward with the agency's offshore wind energy production initiatives," Undersecretary Cheloy Garafil, officer-in-charge of the Office of the Press Secretary (OPS) said in a statement.

Garafil noted that during the meeting, the DOE also made a proposal to create an Offshore Wind Development and Investment Council that will serve as a one-stop shop for OSW developers.

Marcos, Garafil said, backed the proposed creation of the council that will be composed of relevant government agencies, but stressed that the DOE should oversee the regulatory functions to streamline coordination and simplify the approval process.

"It should be the Department of Energy [which] should be talking with the OSW developers, in consultation with the council, of course. It has to be led by the DOE," Marcos, as quoted by the OPS, said.

Bringing down electricity prices

In a media interview while onboard the presidential plane en route to Cambodia, Marcos reiterated his commitment to push for lower rates of electricity.

Marcos said he met with the DOE officials to discuss the “short-term, medium-term, and long-term” energy requirements in the country.

“We spent a long time talking about how to bring down the prices,” he said, noting that the DOE found a way to rationalize power supply.

Marcos also noted that there have been ongoing talks with local cooperatives to discuss how “they can sell power at the cheapest price possible.”

Based on the World Bank's OSW Roadmap, the Philippines has the capacity to deploy 40 Gigawatts of OSW electricity by 2050.

Currently, there are 42 approved offshore wind contracts with an indicated capacity of 31,000 Megawatts (MW), based on the data presented by the DOE to Marcos.

Private sector's 'strong interest'

The DOE also noted the "strong interest" from the private sector, especially from countries considered "leaders in offshore wind technology" such as Denmark, Norway and the United Kingdom.

“This is more than enough to cover the 500,000 MW projected peak demand the country will require by 2040 based on DOE's medium to long-term power outlook,” Lotilla told the President.

Lotilla emphasized that the power that will be generated through OSW projects would be used to help the country meet its energy needs, as well as to produce alternative fuels, such as Green Hydrogen.

Citing the DOE report, Garafil said hydrogen may be converted into ammonia, which is a primary component in the production of industrial fertilizers used in agriculture.

The DOE said hydrogen may be converted into ammonia, which is a primary component in the production of industrial fertilizers used in agriculture.

In 2021, the DOE signed a memorandum of understanding with Australia's Star Scientific Ltd. and Japan's Hydrogen Technology Inc. to explore the potential of hydrogen as a source of energy for the Philippines in the future.

Contingency plans

Garafil said the DOE also presented to Marcos its November 2022 to December 2023 outlook which showed that power reserves in Luzon may fall below ideal levels, given the continued shutdown of the Ilijan Power Plant in Batangas City, which has a total capacity of 1,200 MW.

"As a contingency, the energy department proposes to run the Ilijan Power plant, a dual-fuel power station in Ilijan, Batangas City, using diesel fuel to produce 420 MW, as well as implement the Interruptible Load Program," Garafil said.

Garafil added that the DOE and concerned government agencies are closely coordinating to address the delays in the National Grid Corporation of the Philippines' (NGCP) transmission line projects to free up power capacity for 2023.

She said the DOE would also release "short-term" action plans that will serve as guide of the energy sector for 2022 to 2024, pending the release of the Philippine Development Plan (PDP) 2023-2028.

The DOE has also developed the Philippine Energy Plan 2020-2040, a 20-year plan which includes energy sector initiatives and projects that seek to ensure sustainable, stable, secure, adequate, accessible and inexpensive energy.

The 20-year plan is setting a target of 35 percent share of renewable energy in the power generation mix by 2030 and 50 percent share by 2040.

Marcos, in his first State of the Nation Address delivered on July 25, emphasized the need to prioritize clean energy and tap natural gas and nuclear power to meet the Philippines' energy demands.

 

Article courtesy of the Philippine News Agency

November 11, 2022

Photo credit: BusinessWorld

The House Committee on Energy on Thursday formed a technical working group (TWG) to discuss the proposal to pursue the development of the country's natural gas industry, which is a legislative priority of President Ferdinand R. Marcos Jr.

In his opening remarks, committee chair and Marinduque Rep. Lord Allan Velasco said the priority legislative measure would provide a framework for the development of the natural gas industry in its transition from an emerging to a mature industry, promote a competitive natural gas market and define responsibilities of various government agencies and private entities in furtherance of the national goal.

Velasco said the Philippines still lacks a clear, comprehensive and integrated legislative framework that would serve as a pillar toward achieving the rapid development of the country's natural gas sector.

"The lack of such clear policies is detrimental to the thrust of the Department of Energy to attract foreign investors to invest in our natural gas potentials or importation or transmission of the same," he said in the bill's explanatory note.

He said the passage of the bill would promote natural gas as a safe, environment-friendly, efficient and cost-effective source of energy.

It would also create favorable conditions to establish a natural gas industry serving all segments of the nation’s population in different sectors of the economy, he noted.

He said the bill would promote the development of the Philippines as a liquefied natural gas trading and transshipment hub within the Asia-Pacific region.

The panel held initial deliberation on eight measures, seven of which would promote the development of the Philippine downstream natural gas industry, while the other proposal would provide for the national energy policy and framework for the development and regulation of the Philippine midstream natural gas industry.

The panel nominated Committee on Energy Vice Chair and SAGIP Party-list Rep. Rodante Marcoleta to head the TWG.

 

Article courtesy of the Philippine News Agency