The Chioson Group of Companies and FLB Prime Holdings Inc., a Cebu-based steel manufacturer and property developer, tapped First Gen Corp. (First Gen), the country’s leading provider of renewable energy (RE), anew for the supply of geothermal power to the group’s business units in Cebu in line with its goal towards carbon neutrality.
First Gen and Chioson Group officials signed on April 30 the renewal of their power supply agreement, where the Lopez firm will provide 2.1 megawatts (MW) of electricity to the latter’s steel manufacturing plants in Mandaue City and the FLB Corporate Center headquarters in Cebu City.
“As we move ahead with our drilling program to harness more geothermal energy, we are confident that we can enable and empower more companies to advance their decarbonization journeys, not just with RE supply, but with other solutions that can help rationalize power consumption and electricity costs,” said First Gen vice president for sales and marketing Arlene Sy in a statement.
The Chioson Group owns steel manufacturing plants, through Chioson Development Corp. and Puresteel Manufacturing Corp. and the corporate building through FLB Industries Inc.
The power supply for the three Chioson companies will come from the geothermal power plants in Kananga and Ormoc City in Leyte of First Gen subsidiary Energy Development Corp. (EDC), the country’s largest geothermal company.
The Chioson Group first teamed up with First Gen in 2020 as part of the company’s aim to manufacture in a more sustainable manner a wide range of steel products such as c-purlins, corrugated sheets, square tubes, rigid steel conduit pipes, rectangular tubes, rebars and nails.
“Over the last five years that we have partnered with First Gen, we have avoided at least 5 million tons of carbon dioxide emissions. We take pride in knowing that every steel product we make leaves behind the lowest carbon footprint possible. The Chioson Group looks forward to continuing our sustainability journey with First Gen,” said Bernard Chioson, Chioson Development Corp. chief operating officer.
First Gen, through EDC, owns and operates in the country 13 power plants that run on geothermal energy, an RE with the distinct advantage over other RE resources for its capability to generate electricity on a 24/7 or uninterrupted and year-round basis.
The EDC geothermal plants have close to 1,200 MW of installed capacity, or roughly 60 percent of the country’s total geothermal power capacity.
First Gen’s RE portfolio also includes hydro, wind and solar facilities with more than 400 MW of total combined capacity.
