Foreign and local companies in the Philippines are transitioning to clean power sources as part of their corporate social responsibility program.
SM Prime Holdings Inc., one of the leading property developers in Southeast Asia, signed a long-term clean energy supply deal with Aboitiz Power Corp. in August 2022 to power its malls and other properties.
Under the agreement, Aboitiz Power will supply reliable and responsibly-sourced energy from the Tiwi and MakBan Geothermal Power Plants and PV Sinag’s power plants operated and managed by subsidiary Aboitiz Renewables Inc. to SM Prime.
“This partnership with Aboitiz Power is aligned with our unwavering commitment to being a catalyst for economic growth and steward of nature. We will continue providing world-class amenities within our sustainable lifestyle cities that have been beneficial and inspirational to millions of Filipinos,” said SM Prime president Jeffrey Lim.
The long-term contract will power SM Prime properties, including malls, leisure homes, offices, hotels and other establishments under the retail competition and open access regime by the end of 2022.
“We thank SM Prime for trusting us to be their partner in their transition to clean and renewable energy. It is a privilege to be given the opportunity to power various SM Prime properties with our renewable assets,” said Aboitiz Power senior vice president for commercial operations business unit Sandro Aboitiz.
Cleanergy portfolio
Aboitiz Power said it would expand its Cleanergy portfolio in the next ten years to support the government’s plans to boost the renewable energy industry in the country. The Department of Energy aims to increase the country’s renewable energy supply share to 35 percent by 2030.
Aboitiz Power expects to have 50:50 Cleanergy and thermal capacity mix by 2030.
“We have supported a growing number of corporations transitioning to clean and renewable energy and we are excited at the prospect of seeing a future where Cleanergy is the norm,” said Aboitiz Renewables Inc. vice president for commercial strategy, sales and engagement David Aboitiz.
SM Prime is also a key player in the SM Green Movement that aims to improve the quality of life of communities through sustainable solutions to promote a green planet, green living, and a green culture.
GEOP
Aboitiz Power said that in the Visayas, its retail electricity supply company Advent Energy Inc. won contracts to supply renewable power under the Department of Energy’s Green Energy Option Program.
Car parts builder NKC Manufacturing Philippines Corp.’s factories in Lapu-Lapu City and sugar producer Victorias Milling Company Inc. now run on Cleanergy, Aboitiz Power’s renewable energy solutions brand.
Aboitiz Power supplies communities and businesses with power derived from run-of-river, large hydro, solar and geothermal.
GEOP empowers consumers by allowing them to source renewable energy from a licensed supplier. The program also promotes renewable energy use, thereby increasing the share of clean energy in the country’s generation mix.
NKC president Norihiko Matsuda said using reliable and responsibly-sourced energy is essential in their business operations.
“While we help build vehicles, we want to do our part in creating a safer world where families can enjoy the products we put to life. We are confident that having Aboitiz Power as a supplier paves the way for NKC to go full speed with this direction,” Matsuda said.
VMC said the choice to shift to renewable energy to run their bioethanol plant is a way to help the company achieve its sustainability goals.
“As a sustainable enterprise, our company undertakes environmentally responsible practices within our business and promotes these across our supply chain and surrounding environment,” VMC president Minnie Chua said.
“We support the GEOP initiative of the DOE as it gives customers the freedom to choose renewable energy in meeting their energy requirements and their own energy supplier,” said Aboitiz Power senior vice president for commercial operations Sandro Aboitiz.
“More importantly, it allows end-users to play an active part in reducing environmental impact and safeguarding the future of generations to come.”
Geothermal energy
Meanwhile, Energy Development Corp., a unit of First Gen Corp., started supplying 20 megawatts of renewable energy to More Electric and Power Corp. on July 25, 2022.
EDC’s five-year power supply to MORE Power will come from the Unified Leyte Geothermal Power Plant, one of the company’s largest geothermal facilities.
“Green power is not only reliable but also affordable. MORE Power gives priority to affordability of electricity, then having renewable energy in our portfolio. We are confident that this partnership with First Gen and EDC will give us both our priorities that will benefit our consumers in the long term. Especially now that global fuel prices are, and will continue to be volatile, having renewable energy in our portfolio will save our consumers from high electricity costs,” said MORE Power president and chief executive Roel Castro.
Geothermal energy can provide uninterrupted, year-round baseload power and hardly emits carbon dioxide.
EDC said MORE Power would avoid releasing a minimum of 124,942 tons of carbon dioxide that could otherwise be emitted annually if the electricity came from a coal-fired power plant.
Emission reduction
Japanese waste management and recycling company GUUN Co. Ltd. also secured renewable energy from First Gen to help achieve its 42-percent target carbon dioxide reduction by 2030.
First Gen’s power marketing, trading and economics vice president Carlo Vega said GUUN made the right choice of switching to RE “to decarbonize its Philippine operations and help its cement plant customers to also do the same.”
“This greening of supply chains is necessary if we truly want to be a part of the solution to our climate crisis and at the same time, future-proof our businesses,” said Vega.
GUUN’s Philippine branch in Consolacion, Cebu produces 8,000 tons of fluff fuel annually, an alternative fuel from waste plastics and residual waste used in cement plants as a substitute for coal. This type of recycling entails huge electricity that primarily contributes to carbon dioxide emissions because it is usually sourced from coal.
“Looking at all providers of this 24/7 source of RE, we chose to partner with First Gen because of its proven track record in supplying geothermal power to its customers all over the country,” said GUUN senior managing director and general manager Takeshi Konishi.
GUUN’s one-year geothermal power supply which started on Sept. 26, 2022 will come from First Gen’s renewable energy arm Energy Development Corp.
GUUN expects a 50-percent to 55-percent CO2 reduction in its entire recycling process locally, equivalent to 261 tons of CO2 emissions from its supply agreement with EDC.
EDC is First Gen’s 100-percent renewable energy subsidiary that has over 1,480 MW of installed capacity and accounts for 20 percent of the country’s total installed RE capacity. Its 1,185.40-MW geothermal portfolio accounts for 62 percent of the country’s total installed geothermal capacity, making the Philippines the third largest geothermal producer in the world.
Environment solution
TDK Philippines Corp. also sourced renewable power from EDC to power its entire manufacturing plant in Laguna province.
The move forms part of TDK Group’s commitment to becoming part of the solution to various environmental and social issues related to climate change, as stated in its Environment Policy and Medium Term Plan 2023.
“The partnership with First Gen is a big step for TDK Philippines to achieve our environmental mission to a cleaner, decarbonized world. TDK will continue to reach its environmental targets from the perspective of the entire supply chain and create value for a sustainable society,” said TDK president and chief executive Tamotsu Aiba.
TDK’s manufacturing plant will soon enjoy a stable supply of 2.5 megawatts of geothermal energy. This will enable TDK to avoid a minimum of 13,139 tons of carbon dioxide from coal each year.
100% renewable
Mondelez Philippines, the local unit of global snack manufacturer Mondelez International Inc., also tapped EDC to supply power to its manufacturing plant in Sucat, Parañaque City. Under the agreement, EDC will supply 100-percent geothermal energy to Mondelez from the 150-megawatt Bacon-Manito Geothermal Project in the Bicol region.
“We are proud to source our power from 100-percent renewable energy. Sustainability for our company is about preserving our world and its people. We all depend on just one planet. The smart and sustainable use of natural resources to reduce our environmental footprint is necessary now more than ever. This latest initiative complements our other sustainable projects in the Philippines,” said Mondelez Philippines plant lead Atul Kulkarni.
First Gen also supplies renewable energy to Silliman University Medical Center Foundation Inc. in Negros Oriental province. This is the first hospital on the island to be directly powered by geothermal energy from locally-sourced clean power.
First Gen began supplying SUMCFI with 800-kilowatts of geothermal power on Jan. 26, 2023 through EDC’s second-largest geothermal facility is located in Valencia, Negros Oriental.
“After carefully evaluating offers from various proponents, the board has decided to partner with First Gen that will be able to supply us with clean, renewable energy through geothermal power coming from our very own province here in Negros Oriental at a very competitive price,” said SUMCFI corporate secretary and board member Emmanuel Abellanosa during the ceremonial contract signing.
Decarbonizing the future
Mc Bride Corp., the country’s leading PET bottle manufacturer, is decarbonizing its operations by switching to renewable energy produced by EDC.
EDC will provide Mc Bride 1.39 MW for its two facilities in Caloocan City. Mc Bride, which provides high-quality plastic packaging to various fast-moving consumer goods manufacturers in the ASEAN region, announced its plan to cut its carbon footprint by 25 percent in 2023.
“We are more than glad to be a part of Mc Bride’s decarbonization journey by helping them reduce their carbon footprint even as they continue to grow their business through our reliable source of 100 percent clean and green power,” said First Gen vice president and power marketing, trading and economics head Carlo Vega.
Mc Bride said it is taking great strides to reduce the impact of plastic on the environment through various measures such as implementing proper waste segregation and disposal and energy conservation.
The move to entirely shift to renewable energy will help Mc Bride reduce its carbon footprint by 7,231 tons per carbon dioxide equivalent each year.
Mc Bride also plans to set up a PET bottle recycling facility to reduce its carbon footprint further and hopes that First Gen will also be able to power it with 100 percent RE.
“In line with our green goal, Mc Bride is really looking for a partner that has the same mission and care for the environment. We actually want to slowly shift to renewable energy, especially considering our present situation,” said Mc Bride president Harvey Keh.
