FGEN to continue supplying power to GMC’s Cebu plant
By Lenie Lectura – October 21, 2024
from Business Mirror
PUBLICLY-listed First Gen Corp. (PSE: FGEN) and privately-held food manufacturer General Milling Corp. (GMC) announced the renewal of their energy supply deal.
Under the agreement, FGEN through subsidiary Green Core Geothermal Inc. (GCGI) will continue to power GMC’s largest food manufacturing complex in Lapu-Lapu City, Cebu, with electricity from GCGI’s geothermal power plant in Negros Oriental.
The new agreement, signed last October 9, extends the eight-year collaboration between GMC and FGEN that began in 2016 under the government’s Retail Competition and Open Access (RCOA) policy, which allows businesses with substantial electricity demands to choose their own energy provider.
“We are betting big on renewable energy because it’s the future of sustainable manufacturing. This partnership with FGEN ensures that we are not only meeting today’s energy needs but doing so in a way that aligns with our long-term environmental goals,” GMC President Anna Gurango-Vicencio said in a statement. “By integrating more clean energy into our operations, we are future-proofing our business while making a positive impact on the environment.”
With operations spanning flour and feed milling, livestock breeding, and hatchery production, GMC’s Lapu-Lapu manufacturing complex is a critical part of its operations. The plant also includes a wharf that supports the efficient movement of large cargo ships.
“We have seen the tangible benefits of renewable energy in our operations over the past years,” added Gurango-Vicencio. “The partnership with FGEN is a vital part of our strategy to keep our energy sources sustainable as we scale our operations and deliver high-quality products to our customers nationwide.”
FGEN’s Vice President for Power Marketing, Trading, and Economics Carlo Vega emphasized the importance of long-term collaborations to achieve decarbonization.
“Aside from helping GMC reduce the carbon footprint of their manufacturing operations through a steady renewable energy supply, we are committed to partner with them in their journey towards decarbonization—by helping them harness more RE and integrate this into their operations, and rationalize their power usage,” Vega said. “It is through continuous collaboration that we can find balance between maintaining sustainable business while mitigating environmental impact.”
GMC operates additional sites in Cagayan de Oro, General Santos, and Calamba, with headquarters in Makati City and Bonifacio Global City, Taguig.
FGEN has 3,668 megawatts of combined capacity from a fleet of 32 power plants running on clean and RE resources. It has the country’s largest RE capacity at 1,651 MW from its solar, wind, hydro and geothermal power plants. Its other power generation facilities, which have 2,017 MW of combined capacity, run on natural gas.
