Mindoro

Energy
City

An MEC Project









Flexi-Feedstock lcSNG Plant
Commercial Demonstration Plant with Carbon Capture
and Re-Use Technologies for the Production of Low
Carbon Substitute Natural Gas


Overview
A consortium of local and international
companies is building a commercial
demonstration plant that will produce low
carbon Substitute Natural Gas
1
(lcSNG).

The plant will use multiple feedstocks consisting of:

o renewables (biomass from dedicated energy crops and
plantations, as well as agricultural and forestry wastes);
o recyclables (MSW, animal wastes, petcoke, used tires); and
o fossils, if and when necessary (coal, crude oil residuums, diesel).


1
Natural gas is principally methane (a molecule of one carbon and 4 hydrogen), with about 2% - 6% ethane (a molecule of 2 carbons
and hydrogens. When synthesized or manufactured, natural gas is referred to as synthetic natural gas or substitute natural gas or
SNG. When manufactured out of captured carbon dioxide and hydrogen using recyclable and/or renewable feedstocks, this paper
refers to it as low carbon Substitute Natural Gas or lcSNG.

Quick Facts

Project Proponent

Consortium of Local and International
Companies
Estimated Construction Costs
First Phase: W/O CO
2
Capture & Re-Use
$ 150.0 Million
Second Phase: W/ CO2 Capture & Re-Use
$250.0 Million
Location
Mansalay, Oriental Mindoro
Sponsor
Congressman Reynaldo Umali
Chairman, House Committee on Energy
16th Congress of the Philippine House
of Representatives
Website:
www.mindoroenergycity.com
The project will use technology components that will come with
corresponding performance guarantees from technology vendors of
high repute in the petroleum refining and power industries.

The Project will be integrated with Mindoros UTOL Program for large
scale farming of dedicated energy crops and plantations that will be
used primarily as feedstocks for the demonstration plant.

The plant will produce about 60MW of power, of which about 40MW
will be allocated for the production of lcSNG, and the remainder of
about 20MW will be allocated as supplement the Mindoro grid during
peak load periods
2
, only if and when needed and requested by the
local utility.

The project will be in two phases. The first phase will cost about
$150.00 million without carbon capture and re-use. The second phase
will cost an additional $100.00 million for the carbon capture and re-
use in the manufacture of lcSNG.

Funding will come from equity contribution of consortium members
and private equity investors, and project financing from lending
institutions. Participation from local government units is welcome.

The project will apply for pre-investment funding from banking
institutions with programs to support large power and energy
projects with carbon capture and storage, such as the World Bank and
the Asian Development Bank.


2
This standby grid supplementation is primarily for the purpose of alleviating if not eliminating the power deficiency situation in
Oriental Mindoro and make available reliable and affordable power to large consumers such as rice mills, agri processing plants, etc.
and improve the provinces productivity.