Fuel shift of Ilijan plant may fall short to augmenting 2015 power lack - PSALM

17 Oct 2014

"The 1,200-megawatt (MW) Ilijan combined-cycle power plant's proposed fuel shift from biodiesel to pure diesel will not provide assurance that the load of the plant's Block 1 would increase from 420 MW to 600 MW whenever the natural gas supply from the Malampaya is not available," Power Sector Assets and Liabilities Management (PSALM) Corporation President and Chief Executive Officer Emmanuel R. Ledesma, Jr. stated. "In any case, this shift cannot be completed in time for the Malampaya shutdown from 15 March 2015 to 14 April 2015," he added.

Mr. Ledesma reported that only the Ilijan plant's Block 1 would be available in 2015, as Block 2 will be on planned maintenance outage during the Malampaya turnaround shutdown from 20 March 2015 until 20 April 2015.

"The change in the Ilijan power plant's alternative fuel from biodiesel to pure diesel has been proposed to augment the power supply during the Malampaya shutdown in 2015, with an expectation that this will ensure operation of Ilijan's Block 1 at its full 600-MW capacity. However, this shift cannot guarantee the increase in capacity given (a) that the last performance test of the plant using liquid fuel was conducted 13 years ago, and (b) the effect of plant degradation and changes in ambient temperature during its operation," Mr. Ledesma explained.

"Likewise, should the shift to pure diesel proceed, the following preparatory activities would require around six (6) months to complete, which will extend beyond March 2015: (a) liquid operation of Ilijan for three (3) days to consume the current biodiesel inventory; (b) cleaning of the fuel tanks to be undertaken by plant operator KEPCO Ilijan Corporation (KEILCO); (c) PSALM's procurement of contractor for removal of sludge, actual removal, and sale; (d) preparation of the gas turbines for pure diesel operation; and (e) PSALM's procurement of 60 million liters of pure diesel. There is also a need to conduct a pure diesel tuning, stability operation and performance test, which will take at least eight (8) days," Mr. Ledesma said.

"Hence, PSALM recommends the continued use of biodiesel for Ilijan to ensure continuous power supply during the 2015 Malampaya shutdown," Mr. Ledesma stated.

Ilijan's usable liquid fuel storage of about 30 million liters is good for five (5) days at 1,200 MW, and about thirteen (13) days at 420 MW. Based on the limitation of the jetty and fuel storage facility, PSALM's simulation results show that beginning with full storage tanks inventory and fuel deliveries through barges during operation, the plant can sustain twenty five (25) days liquid operation of one Block. The plant will need to be shut down for five (5) days to be able to clean combustor fuel nozzle and fuel oil system in preparation for natural gas firing operation.

The Ilijan plant, located in Batangas province, is under a Build-Operate-Transfer contract with KEILCO. Through PSALM, the Government is responsible for the plant's fuel supply based on the Energy Conversion Agreement (ECA) with KEILCO. Under the ECA, KEILCO shall make its best effort to synchronize Ilijan's maintenance with the Malampaya shutdown. Each Block has a rated capacity of 600 MW.

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