LEADING building solutions provider Holcim Philippines has tapped First Gen Corporation (First Gen) to power its Mindanao plants with geothermal energy in line with its decarbonization direction.
Under the agreement, First Gen would provide clean, renewable energy to meet 22% of the power needs of Holcim’s manufacturing facilities in Bunawan, Davao City and Lugait, Misamis Oriental. The electricity would be sourced from the geothermal plant in North Cotabato, operated by First Gen subsidiary, Energy Development Corporation.
The partnership between First Gen and Holcim was enabled by the recent introduction of the Retail Competition and Open Access (RCOA) program in Mindanao, where eligible power consumers whose monthly average peak demand reaches at least 500 kilowatts can choose their own electricity suppliers.
“Reducing environmental impact will entail a combination of efforts. We are pleased to partner with Holcim Philippines in ensuring that they are able to maximize and optimize every kilowatt of power they use to achieve greater efficiency and make strides towards a decarbonized and regenerative future,” said Francis Giles Puno, First Gen President and Chief Operating Officer.
“This partnership is a significant step towards meeting our goal to source 65% of our power needs from renewable energy by 2030 to decarbonize our business. We are excited and confident to work with First Gen, a company that shares our strong commitment to sustainability and a leading provider of renewable energy in the country,” said Holcim Philippines President and Chief Executive Officer Nicolas George.
Holcim Philippines is one of the country’s largest construction materials providers with four cement manufacturing plants, aggregates and dry mix businesses, and technical support facilities for building solutions.
Since 2018, Holcim Philippines has reduced its carbon footprint by more than 20% by producing more blended cements, replacing coal with qualified wastes as alternative fuels and raw materials, shifting to renewable energy, and improving efficiency of operations. The company is a member of the Net Zero Carbon Alliance, a multi-sectoral movement aimed at building collaborative pathways for organizations to get on a path towards decarbonization.
On the other hand, First Gen has over 1,651MW of capacity of renewable energy (RE) sourced from hydro, wind, solar and geothermal. In 2023, First Gen RE plants produced 8,000 GWh of power, primarily from geothermal output.
A unit of Lopez-led conglomerate First Philippine Holdings Corporation, First Gen aims to expand its total RE capacity to 7,500 megawatts by 2030.
