First Gen Corporation, a prominent player in local power generation, has successfully renewed its renewable energy supply agreement with General Milling Corp. (GMC), an integrated food manufacturing company.
The new deal, signed earlier this month, will enable First Gen subsidiary, Green Core Geothermal Inc., to supply electricity from its geothermal power plant in Negros Oriental to GMC’s largest food manufacturing facility in Lapu-Lapu City, Cebu.
“We are betting big on renewable energy because it’s the future of sustainable manufacturing,” said Anna Gurango-Vicencio, GMC president. “This partnership with First Gen 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.” She emphasized the collaboration is part of the strategy to future-proof GMC’s operations while making a positive impact on the environment.
The agreement also marks the continuation of an eight-year partnership between GMC and First Gen that began in 2016 under the government’s Retail Competition and Open Access policy. This policy allows businesses with substantial electricity demand to select their own energy providers, fostering competition and sustainability in the energy sector.
While specific details regarding the power capacity and terms of the renewed agreement remain undisclosed, GMC highlighted the critical importance of securing a reliable energy supply for its Lapu-Lapu manufacturing complex. The facility supports a diverse range of operations, including flour and feed milling, livestock breeding, hatchery production, and a wharf facilitating the efficient movement of large cargo ships.
Carlo Vega, First Gen’s vice president for power marketing, trading, and economics, underscored the significance of long-term collaborations in achieving decarbonization goals. “Aside from helping GMC reduce the carbon footprint of their manufacturing operations through a steady renewable energy supply, we are committed to partnering with them on their journey toward decarbonization by integrating more renewable energy into their operations and optimizing their power usage,” Vega said.
GMC operates additional facilities in Cagayan de Oro, General Santos, and Calamba, with headquarters located in Makati and Taguig.
Meanwhile, First Gen boasts of a combined capacity of 3,668.2 megawatts (MW), leveraging various energy technologies that include natural gas, geothermal, hydroelectric, wind, and solar power. The company aims to expand its total capacity to 13,000 MW within the next six years, with planned investments of up to $20 billion by 2030.
This partnership not only reflects a commitment to sustainability but also positions both companies at the forefront of the renewable energy transition in the Philippines.
