Last update:
2021-07-12

Cancellation of Korean 2nd coal plant in Sual, Pangasinan, Luzon, Philippines

In October 2020 Korean's KEPCO stopped the plan for a 2nd CFPP in Sual, agreeing to stop overseas investment in coal power due to Korean New Deal.


Description:

Plans to develop a 1000-MW coal fired plant in Sual started in may 2018, when KEPCO announced that was in talk with local partners to invest in this Project: SK Engineering & Construcion (SKE&C). They signed a Letter of Intent (LOI) with the Government of the Philippines to build two 600 MW coal-fired power plants on Luzon island at an estimated cost of KRW2.2 trillion (US$1.98 billion) [5][6]. There is already a CFPP in Sual, with a net contracted capacity of 2x500 MW. This power plant is owned by Team Energy, which is a joint venture between Marubeni Corporation and Tokyo Electric Power Corporation.

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Basic Data
Name of conflict:Cancellation of Korean 2nd coal plant in Sual, Pangasinan, Luzon, Philippines
Country:Philippines
State or province:Province of Pangasinan, Philippines
Location of conflict: Municipality of Sual
Accuracy of locationMEDIUM (Regional level)
Source of Conflict
Type of conflict. 1st level:Fossil Fuels and Climate Justice/Energy
Type of conflict. 2nd level:Thermal power plants
Specific commodities:Coal
Electricity
Project Details and Actors
Project details

1200 MW electricity.

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Level of Investment: 2,000,000,000
Start of the conflict:2018
End of the conflict:01/10/2020
Company names or state enterprises:SK Engineering & Construction Co. Ltd. ((SK E&C)) - Investor
Korean Electric Power Corp. (KEPCO) Philippines (KEPHILCO) - Developer
Relevant government actors:Local Governments of Sual and Pangasinan. Philippine Government
South Korean Government
Environmental justice organizations (and other supporters) and their websites, if available:Save Sual Movement (SSM)
Philippine Movement for Climate Justice (PMCJ)
MAKABAYAN Pangasinan
Asian Peoples' Movement on Debt and Development (Lidy Nacpil).
Conflict & Mobilization
IntensityLOW (some local organising)
Reaction stagePREVENTIVE resistance (precautionary phase)
Groups mobilizing:Local ejos
Forms of mobilization:Street protest/marches
Impacts
Environmental ImpactsPotential: Food insecurity (crop damage), Loss of landscape/aesthetic degradation, Soil contamination, Surface water pollution / Decreasing water (physico-chemical, biological) quality, Groundwater pollution or depletion, Global warming, Air pollution
Health ImpactsPotential: Other environmental related diseases
Other Health impactsRespiratory ailments such as asthma, bronchitis, pharyngitis and other chronic respiratory diseases; skin infections, cardiovascular diseases, cancer
Socio-economical ImpactsPotential: Loss of traditional knowledge/practices/cultures, Land dispossession, Displacement, Lack of work security, labour absenteeism, firings, unemployment, Loss of livelihood
Other socio-economic impactsFarmers resport a downward trend in their rice harvestts since the operation of the 1st Sual Power Plant.
The second coal power plant would be located along the coast of Lingayen Gulf, an environmentally critical area important to fishing [7] communities and tourism. Therefore, the traditional practices and economies would be harmed.
Outcome
Project StatusStopped
Conflict outcome / response:Project cancelled
Do you consider this an environmental justice success? Was environmental justice served?:Not Sure
Briefly explain:The affected community is already facing the impacts of Sual Coal-Fired Power Station, the larger and most cost-effective coal-fired power station in the country, built in 1996. The second CFPP will not be built. But there is talk of using LNG instead.
Sources & Materials
Juridical relevant texts related to the conflict (laws, legislations, EIAs, etc)

PROPOSED 2 X 500 MW Pangasinan Coal Power Plant Project (PCPPP)

KEPCO PHILIPPINES INC. (“KEPHILCO”)
[click to view]

[1]Mayuga, J.L., 2020. Reject 2nd Coal-Fired Plant In Sual. Business Mirror.
[click to view]

[2]Mongabay, 2020. South Korea’s move away from coal leaves a Philippine power plant in limbo. Mongabay.com
[click to view]

[4]Bungane, B., 2020. South Korea’s KEPCO cancels foreign coal power investment. ESI Africa.
[click to view]

[5]Cordero, T., 2018. KEPCO in talks with local partner to develop 1,000-MW Sual power plant. GMA News
[click to view]

[3]GCR Staff., 2020. “No more overseas coal power projects,” says South Korea’s Kepco. Gobal Construction Review.
[click to view]

[6]Ming-hee, J., 2018. SK E&C Inks LOI with the Philippines on Coal-fired Power Plants. Bussines Korea.
[click to view]

Related media links to videos, campaigns, social network

[7]MAKABAYAN Pangasinan, 2018. Petition Letter: No to KEPCO's Coal Power Plant in Sual! No To Second Coal Power Pkant in Pangasinan! Change.org
[click to view]

Meta information
Contributor:Teresa Sanz, ICTA, UAB
Last update12/07/2021
Comments
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