Philippines DOE explores coal blending to reduce import reliance

The Philippine Department of Energy (DOE) is exploring the establishment of a coal-blending facility to increase the domestic use of local coal and reduce reliance on imports. Energy Secretary Sharon Garin noted that such a facility could allow locally mined Semirara coal to be blended with other grades to meet the technical specifications of power plants currently designed for Indonesian coal. In 2023, Indonesia supplied 98.8 percent of the Philippines’ coal imports.

Simultaneously, the DOE has terminated its 2026 Coal Bid Round, which included 18 blocks across Semirara Island, Cagayan, and Isabela. The agency stated it will reassess bidding parameters to ensure future Coal Operating Contracts provide measurable economic benefits to the government and consumers. The revised framework is expected to place greater emphasis on domestic utilization commitments and increased government revenue shares. This move follows discussions regarding the need for a larger portion of Semirara’s output to be sold domestically to support national energy security.