STEEL products maker Puresteel Manufacturing Corp. has tapped First Gen Corp.’s unit for the supply of electricity from clean and renewable sources, the listed company said on Thursday.
In a media release, Lopez-led First Gen said its subsidiary First Gen Energy Solutions, Inc. (FGES) and Cebu-based Puresteel had firmed up their contract for 600 kilowatts (kW) of renewable energy (RE).
The contract, which took effect on March 26, brings to 2.1 megawatts (MW) the total energy drawn by the Chioson group of companies from the First Gen group. The new power supply will be used to run Puresteel’s facilities in Mandaue, Cebu.
“Our main reason for switching to RE is to have a cleaner way to produce and manufacture steel. We want to reduce our carbon footprint by using green, renewable energy,” said Bernard B. Chioson, Chioson Development Corp. (CDC) chief operating officer and concurrent chief executive officer of Puresteel.
The electricity supply will be sourced from geothermal power plants in Leyte under Energy Development Corp. (EDC), another First Gen subsidiary.
The Chioson group of companies aim to achieve carbon neutrality by 2025.
“When we started our green energy journey in 2021, we decided to get First Gen as a partner because we share the same sustainability values with First Gen. We are confident that First Gen can help Puresteel achieve its goal of carbon neutrality by the year 2025,” Mr. Chioson said.
CDC makes and markets steel products such as steel bars, nails, steel mattings, plates and wires. Puresteel handles c-purlins, corrugated sheets, square tubes, rigid steel conduit pipes, and rectangular tubes.
Last year, the Chioson group through CDC reached an agreement with FGES for an initial 1,500 kW of renewable energy from EDC’s geothermal power plants in Leyte and Bicol. The power supply is for CDC and its Cebu property arm FLB Industries, Inc.
Carlos Lorenzo L. Vega, First Gen vice-president, said: “We offered to partner with the Chioson Group after finding out about its carbon neutrality goal.”
He said the move was another opportunity for the Lopez group to practice its new mission, “Forging collaborative pathways for a decarbonized and regenerative future.”
“By offering competitive power rates, we can help the Chioson Group pursue its sustainability goal, while at the same time improving its competitiveness in the market,” Mr. Vega added.
EDC is First Gen’s main renewables arm. FGES is a licensed retail energy supplier of First Gen.
First Gen’s power plant portfolio includes other renewable energy sources such as hydro, wind and solar. It owns and operates facilities that run on natural gas. It ended last year with an installed energy capacity of 3,495 MW. — VVS