STEAG Power plant starts operations
Tuesday, September 26, 2006
By MYRNA M. VELASCO
VILLANUEVA, Misamis Oriental — The 210-megawatt Mindanao coal-fired power project developed by STEAG State Power, Inc. (SPI) will soon start augmenting the power supply in the grid, a company official said.
In a presentation to the media, SPI power plant manager Peter Just disclosed that all the mechanical and electrical erection has been substantially completed on schedule.
Commercial operations of the facility will commence by year-end and will shore up supply in the grid by an additional 210 megawatts.
"Unit No. 1 (with 105MW capacity) has already been completed while the other unit (with the same capacity) is under pre-operation tests in preparation for commercial operation," he said.
At least a year prior to commercial operation, SPI in January performed the requisite boiler pressure testing as a means of ensuring that this technology component of the plant will work efficiently according to project design and specifications.
The process is a mandatory practice for coal-fired facilities in Germany and brought here by project operator as a manifestation of the company’s commitment to efficient and safe operation of the Mindanao power plant.
STEAG AG owns controlling stake of 89 percent in the project; while its local partner, State Investment Trust Inc. holds 11 percent equity.
STEAG AG provides technical assistance to SPI during construction/commissioning and after completion of the power facility in accordance with relevant agreements.
The 5 million power project, utilizing a flue gas desulfurizer (FGD) enhanced with quick limebased flame-gas cleaning technology to guarantee its compliance to environmental regulations; sits on a 55-hectare lot inside the Phividec Industrial Estate in Villanueva, Misamis Oriental.
Construction and supply contracts were awarded to Kawasaki Plant Construction Inc. and Kawasaki Heavy Industries, respectively.
The company’s power purchase agreement (PPA) with the National Power Corporation sets specific date for the company to complete construction and for the facility to be on stream until end of 2006
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