First Gen, General Milling extend clean power supply deal

First Gen Corp. has renewed a deal with food manufacturer General Milling Corp. (GMC) to supply the latter’s facility in Cebu province with clean energy. The contract was signed earlier this month, extending both companies’ deal from 2016 under the government’s retail competition and open access (RCOA) policy.

RCOA allows power customers consuming at least 500 kilowatts a month to purchase cheaper electricity from retailers other than the existing distributors in their area.

Under their pact, GMC’s food manufacturing complex in Lapu-Lapu City would continue to run using green energy, with the power sourced from First Gen’s geothermal power plant in Negros Oriental.

Toward decarbonization

GMC’s Cebu operations include flour and feed milling, livestock breeding and hatchery production. The plant also includes a wharf that supports the efficient movement of large cargo ships.

“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 toward decarbonization—by helping them harness more renewable energy and integrate this into their operations, and rationalize their power usage,” First Gen’s vice president for power marketing, trading and economics Carlo Vega said.

“It is through continuous collaboration that we can find balance between maintaining sustainable business while mitigating environmental impact,” Vega added.

GMC president Anna Gurango-Vicencio said tapping First Gen allowed the firm to see “tangible benefits of renewable energy in our operations over the past [eight] years.”

“The partnership with First Gen 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,” she said.

Aside from its Cebu plant, GMC operates additional sites in Cagayan de Oro, General Santos and Calamba, with headquarters in Makati City and Bonifacio Global City, Taguig.

First Gen is the leading power generation firm in the local market, with 1,651 megawatts of total capacity from a portfolio of 26 power plants running on geothermal, hydro, wind, and solar energy.