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With the first of three 82 megawatts (MW) capacity units expected to go online by Feb. 15, Cebu Energy Development Corp. (CEDC) reiterated its claim of using environment-friendly technology by announcing a long-term coal supply contract with PT Adaro.
?Adaro is a company known for its patented envirocoal which has the lowest sulfur content among coal suppliers in the market today. Moreover, PT Adaro has garnered various awards for corporate social responsibility and entrepreneurship programs for its host communities,? said Jesus N. Alcordo, CEDC president, in a statement.
The coal supply agreement between CEDC and PT Adaro was signed at the Makati Shangri-La Hotel on Feb. 4 with CEDC president Alcordo and Edwin K. Tsang, PT Adaro's marketing director, representing the Indonesian firm during the contract signing activity.
Miren C. Sanchez-Facultad, CEDC corporate communications manager, said that PT Adaro would supply them 250 metric tons every year, which would comprise 25 percent of their total coal requirement in a year.
?Other coal requirement will be supplied by local suppliers,? Sanchez-Facultad said.
CEDC is set to be fully operational by the end of December 2010 and is expected to supply at least 216 MW of power for Cebu.
During the initial firing of CEDC's Boiler 1 on Jan. 17, Alcordo said that they were hoping to bring down the unfilled demand and reserve deficit from 233 MW to 17 MW based on the projected supply and demand for Cebu.
This year's projected peak demand is set at 646 MW plus 151 MW reserve; the total demand for Cebu is 797 MW, said Alcordo.
With more power plants expected to be on line by 2011 like Naga Power Plant of Korean Electric Power Corp. (Kepco), Cebu will have a reserve of 36 MW, Alcordo said.
