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Research Program for an Environmentally-Friendly Coal Utilization System

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Research Program for an Environmentally-Friendly Coal Utilization System Survey Report NEDO-C-9929 RESEARCH PROGRAM FOR AN ENVIRONMENTALLY-FRIENDLY COAL UTILIZATION SYSTEM IN THE PHILIPPINES March 2000 NEW ENERGY & INDUSTRIAL TECHNOLOGY DEVELOPMENT ORGANIZATION CENTER FOR COAL UTILIZATION, JAPAN 020005 7-5 RESEARCH PROGRAM FOR AN ENVIRONMENTALLY FRIENDLY COAL UTILIZATION SYSTEM IN THE PHILIPPINES March 2000 NEW ENERGY & INDUSTRIAL TECHNOLOGY DEVELOPMENT ORGANIZATION CENTER FOR COAL UTILIZATION, JAPAN Preface This paper describes the results of “Research Program For Environmentally-Friendly Coal Utilization System (Research Program For Environmentally-Friendly Coal Utilization System in the Philippines)” which was implemented by Center for Coal Utilization, Japan (CCUJ) in fiscal 1998-1999 under a contract with the New Energy and Industrial Technology Develop ­ ment Organization (NEDO). Coal has secured the position of important primary energy in the world owing to the vast amount of reserves and to the superior economy. On the other hand, coal raises anxiety of increasing environmental load caused by SOx, NOx, CO2, and ash generated by the coal use. Thus, for the production countries and also for the user countries, it has become an important issue to establish an efficient coal utilization system compatible with environment (an envi- ronmentally-friendly coal utilization system) covering from the production to the final consumption of coal. Japan is the country of coal import at the largest volume of coal in the world. Accord­ ingly, Japan is strongly requested to play an important role of stabilizing the supply and demand of coal, and to contribute to the world in terms of development, introduction, and transfer of clean coal technology. Southeast Asia is expected to continue the economy growth. Consequently, the area will increase the energy consumption, particularly increasing in the coal use. Among Asian coun­ tries, the Philippines has been developing energy alternative to oil as a national policy emphasizing the development of coal resources and the widening the coal uses, though the Philippines has not large coal production capacity. With the background described above, an object of the survey is, under a cooperation of Japan and the Philippines, to survey and investigate the possibility of introduction of envi ­ ronmentally friendly coal utilization system and to formulate a plan of introduction of the system. The survey implemented in fiscal 1998-1999 focuses on grasping the present situation of the coal utilization technologies in electric power industry, cement industry, and household fuel sector in the Philippines, and investigates the feasibility of introduction of environmen ­ tally friendly coal utilization system which should be necessary in the future, and makes a proposal of the subject. The survey team would express their appreciation to Energy Utilization Management Bu­ reau, especially Database Development Project Team, Department of Energy in the Philippines, the Coal Industry Division of Coal and New Energy Department, Agency of Natural Resources and Energy and NEDO in Japan, for their instructions and cooperation. I wish to express my sincere gratitude for their assistance and cooperation. March, 2000 Eiichi Yugeta, President Center for Coal Utilization, Japan CONTENTS Preface I Outline 1. Items of Survey..................................................................................................................................1 2. Objective.............................................................................................................................................. 1 3. Contents of Survey...........................................................................................................................1 4. Outline of Survey Results ............................................................................................................... 2 4.1 Outline of Survey Results in Fiscal 1998-1999............................................................... 2 4.1.1. Outline of Economy / Energy Situation in the Philippines .................................2 4.1.2. Outline of Coal Supply / Demand in the Philippines ............................................3 4.1.3. Present Situation of Coal Utilization Technology in the Philippines ................3 4.1.4. Outline of Environmental Conservation in the Philippines .................................3 4.1.5. Studies of Environmentally-Friendly Coal Utilization Technologies Applicable to Electric Power Industry...................................................................... 4 4.1.6. Studies of Environmentally-Friendly Coal Utilization Technologies Applicable to Cement Industry...................................................................................4 4.1.7. Studies of Environmentally-Friendly Coal Utilization Technologies Applicable to Household Fuel Sector........................................................................5 5. Survey Items and Sites Conducted Surveys...........................................................................5 5.1 Survey Items............................................................................................................................5 5.2 Sites Conducted Survey........................................................................................................ 5 6. Members of the Survey................................................................................ 6 7. Committee........................................................................................................................................... 7 II Contents of Survey Chapter 1 Present Situation of Economy / Energy in the Philippines .......9 1.1 Present Status and Future Forecast of Economy...........................................................9 1.1.1 Outline of Economy in 1998.........................................................................................9 1.1.2 Outline of Economy in 1999.........................................................................................9 1.1.3 Future Forecast of Economy.......................................................................................11 1.2 Present Status and Future Forecast of Energy Supply / Demand.......................... 12 1.2.1 Present Status of Primary Energy Supply / Demand.......................................12 1.2.2 Future Forecast of Energy Supply / Demand........................................................13 1.2.3 Future Forecast of Energy Demand............................................................. 17 1.3 Current and Future Problems of Economy and Energy Supply / Demand...........23 1.4 Environmental Impact ............................................................................................................24 Chapter 2 Environmental Policy and Situation in the Philippines ...............25 2.1 Trends in the Environmental Regulation .........................................................................25 2.1.1 Enforcement of Laws and Regulations Relating to Environmental Conservation...................................................................................... 25 i 2.1.2 Mitigation of Global Climate Change ....................................................................... 25 2.1.3 Energy Resources Development in Protected Areas and Ancestral Domains.........................................................................................................26 2.1.4 Prevention and Minimization of Incidence of Oil Spill .......................................26 2.1.5 Recognition and Integration of the Philippine Agenda 21 in Energy Management ...............................................................................................26 2.1.6 Philippine Water Act......................................................................................................27 2.2 Philippine Clean Air Act..........................................................................................................28 2.2.1 Status of Clean Air Act................................................................................................ 28 2.2.2 Cost and Effect Relating to Clean Air Act...............................................................28 2.2.3 Ban on Incineration................................. 29 2.3 Regulation on Emission in Industries .................................................................................30 2.3.1 Regulation on Emission in Electric Power Industry.............................................30 2.3.2 Current Situation of Pollution Preventive Facilities at Existing Power Generation Plants..........................................................................................................31 2.3.3 Regulation on Emission in Cement Industry........................................................34 Chapter 3 Situation of Coal Utilization by Industries .........................37 3.1 Situation of Coal Utilization in Electric Power Industry................................................. 37 3.1.1 Present and Future Outlook of Electric Power Industry.................................... 37 3.1.2 Electricity Generation........ ................. ....40 3.1.3 System Reserve................................................... 42 3.1.4 Status of Electrification.............................................................................................. 42 3.1.5 Electricity Rates..................................................... 44 3.1.6 Electricity Outlook ....................................................................
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