Coal news and updates

Ayala building $1-B coal-fired power plant

A unit of the Philippine conglomerate Ayala Corp. said on Thursday construction of a $1 billion coal-fired power plant in the south of the archipelago was underway, as it reaffirmed plans to build an energy portfolio of up to 1,000 megawatts.

AC Energy Holdings Inc., however, is taking a "prudent" stance in expanding its power generation portfolio mindful of potential power oversupply in the next three years.

Ayala, like other Philippine conglomerates such as San Miguel Corp., has diversified into road and power infrastructure, expanding its portfolio that includes banking, real estate and shopping mall development, water utility and electronics manufacturing.

"We're obviously cognizant of the potential oversupply," AC Energy CEO John Eric Francia told reporters on the sidelines of an industry forum.

Building additional capacities will depend on AC Energy getting additional off-take agreements, especially on the main Luzon island where more than 2,000 MW of additional supply are projected to come on stream by 2018 or 2019, he said.

Francia said Ayala now has a total of 700 MW capacity, including the $1 billion power project on southern Mindanao island with a total capacity of 540 MW and funded by a combination of loan and equity.

source: http://www.abs-cbnnews.com