Holcim, First Gen ink power supply deal

By Lenie Lectura – August 19, 2024
from Business Mirror

Holcim Philippines Inc. has tapped First Gen Corp. (First Gen) for the supply of electricity from a geothermal energy source to run the cement maker’s plants in Mindanao.

Under an agreement forged by the two companies, First Gen will provide Holcim with electricity from the geothermal plant of First Gen subsidiary Energy Development Corp. in North Cotabato. The supply will meet 22 percent of the power needs of Holcim’s manufacturing facilities in Bunawan, Davao City; and Lugait, Misamis Oriental. “We are pleased to partner with Holcim Philippines to grow viably while decarbonizing. It’s not an easy journey to decarbonize and provide for a regenerative future.

This requires collaboration not just through supplying power, but also through solutions that maximize and optimize electricity requirements and working to find a pathway towards net zero,” said First Gen President and Chief Operating Officer Francis Giles Puno.

First Gen is the country’s largest producer of renewable energy (RE) with at least 1,651 megawatts of total RE capacity from a portfolio of 26 power plants running on geothermal, hydro, wind and solar energy. It also owns and operates four other power plants with over 2,000 MW of capacity running on natural gas, the cleanest form of fossil fuel.

The partnership between First Gen and Holcim was enabled by the recent introduction in Mindanao of the government’s retail competition and open access (RCOA) program. Under RCOA, eligible power consumers whose monthly average peak demand reaches at least 500 kilowatts can choose their own electricity suppliers.