Clean energy firm eyes more methane power plants

MANILA, Philippines - A company that generates power from waste is targeting more dump sites for additional methane power plants, in line with government efforts to promote clean energy as an alternative power source. The country’s first methane power plant, located in Rodriguez, Rizal, was commissioned Thursday and the owner, Montalban Methane Power Corp. (MMPC), said it was conducting feasibility studies for several landfills in Navotas, San Mateo in Rizal and Sta. Rosa in Laguna. MMPC President Danilo B. Cantiller said they might generate at least 14 megawatts from the proposed sites — 10 megawatts from Navotas and four megawatts from Sta. Rosa. They have not estimated the amount of power they expect to get from the San Mateo landfill. Investment for the plant is said to be between $2 million and $3 million per megawatt. The company is expected to start building the methane plants in Sta. Rosa and Navotas by September at the earliest. MMPC opened its methane plant in Rodriguez, Montalban in Rizal Thursday. The plant will initially generate five megawatts, to be increased to 15 megawatts. The Montalban plant is the country’s first clean development mechanism project and the world’s fourth largest landfill gas-to-energy project. It is expected to earn at least 5,000 carbon credits over its five-year operation contract. Mr. Cantiller said the spot price for carbon credits is 15 to 20 euros per credit. The clean development mechanism under the Kyoto Protocol allows companies to develop carbon dioxide emission reduction projects in developing countries and receive credits for doing so. Developing renewable energy projects is a way to obtain "carbon credits." The Montalban plant is expected to run through 1,500 tons of garbage being thrown at the landfill daily. If the garbage volume hits 2,500, its contract may be extended to 10 years. Power from the plant will also be sold to Manila Electric Co. Mr. Cantiller said that they were still finalizing the power purchase deal with the power distributor, and this could range from P4 to P5 per kilowatt-hour. MMPC is a joint venture of mining magnate Salvador Zamora and Carbon Capital Markets, a British firm that finances carbon credit-related projects. Methane is a by-product of bacteria found in sanitary landfills and municipal sewage treatment plants. It is a relatively potent greenhouse gas that can contribute to global warming. Pampanga Representative and House Energy Committee Chairman Juan Miguel Macapagal-Arroyo, who attended Thursday’s commissioning, said the government is fast-tracking the passage of the Renewable Energy Bill. "We are counting on the Senate to pass the bill immediately so we can consolidate [the bills] by August. We will sign it as soon as possible since it is important to find alternative sources of energy to effectively lower power rates," he said. The House bill mandates distribution utilities to obtain 10% of their power requirements from renewable energy sources, which should be increased by 1% until it reaches 20%. Mr. Arroyo said the capital for such projects would be hard to find here. "Which is why we also added fiscal incentives and tax holidays to those who will invest in renewable energy projects," he added. The bill has been passed on third and final reading at the House of Representatives. The Senate version of the bill is still pending approval. — Ava Kashima K. Austria, BusinessWorld