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SK Engineering & Construction (SKE&C), subsidiary of South Korean conglomerate SK Group, has signed a Letter of Intent (LOI) with the Government of the Philippines to build two 600 MW coal-fired power plants on Luzon island at an estimated cost of KRW2.2 trillion (US$1.98 billion).
The project will be carried out in joint venture with Seohee Construction, with financial support from the Korea Development Bank (KDB). SKE&C anticipates that it will create more than 3,000 jobs.
The power plants will utilise ultra-supercritical technology, which SKE&C claims will make them 15% more efficient, reducing the amount of coal used and the emission of pollutants like sulfur oxides, nitrogen oxides and dust by 50%.
Such technology is necessary to get coal-fired power projects greenlit nowadays, as the lack of sustainability and negative environmental impacts of coal-fired generation make projects unattractive to governments and financiers. However, its effectiveness is disputed by opponents of coal-fired generation, as it has no impact on the emissions per ton of coal burned, but instead allows more power to be generated from each ton of coal.
This is SKE&C's second major project announced in the Philippines this month. The company signed another LOI with the government's Department of Energy to construct an LNG terminal with the capacity of up to five million tonnes per year, several LNG power plants with more than 600 MW capacity, and a pipeline connecting the terminal and power plants up to 150km in length.
This LNG project will also be located in Luzon, the largest of the Philippines' islands, located in the north of the country. The estimated cost is US$1.7 billion, a similar investment to this coal-fired power project.
SK E&S, a subsidiary of Korean conglomerate SK Group, has signed a Letter of Intent (LOI) with the Department of Energy of the Philippines proposing the construction of liquefied natural gas (LNG) infrastructure worth US$1.7 billion. In addition, Phoenix Petroleum and China National Offshore Oil Corp (CNOOC) have signed a Memorandum of Understanding (MOU) to develop LNG projects in the country.
Read moreThe Asian Development Bank (ADB) has signed a loan equivalent of up with US$235 million to B.Grimm Power Public Company Limited, one of the largest power producers in Thailand, to develop and enhance renewable energy capacity in member countries of the Association of Southeast Asian Nations (ASEAN).
Read moreGNPower Dinginin Ltd. Company (GNPD) has reached financial closing for the second generator of the $1.7-billion supercritical coal-fired power plant in Bataan, in the Central Luzon region of the Philippines. GNDP is owned by the Ayala group subsidiary AC Energy Holdings Inc. (50%) and Therma Power Inc., a unit of Aboitiz Power Corp. (50%).
Read moreGlobal Infrastructure Partners (GIP), an independent global infrastructure investor, has announced that its fund, Global Infrastructure Partners III - in conjunction with the Public Sector Pension Investment Board (PSP Investments), one of Canada’s largest pension investment managers, CIC Capital Corporation and a group of its other Limited Partner Co-Investors - has agreed to acquire 100 percent of the equity interests in the wind and solar renewable energy portfolio of Equis Funds Group for US$5.0 billion (including assumed liabilities of US$1.3billion).
Read moreThe U.S. Trade and Development Agency awarded a grant to Tayabas Geothermal Power Inc. (TGPI) supporting the development of a 60-100MW geothermal power project in southeast Luzon, Philippines.
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