First Gen to power Mindanao gas plant

First Gen Corp. is expanding its presence in Mindanao with a new supply deal for a gas manufacturing facility.

In a statement, the Lopez-led firm said it sealed an agreement with Nippon Sanso Ingasco Group (NSIG).

NSIG is a subsidiary of Japanese multinational industrial gas manufacturer Nippon Sanso Holdings Group.

The deal entails powering the firm’s manufacturing facility in Misamis Oriental entirely with electricity generated from renewable energy.

NSIG is a manufacturer and distributor of liquid and compressed industrial gases for various industries.

Its customers include firms engaged in electronics, food and beverages, steel production, including hospitals.

First Gen said it would source the 2.6 megawatts (MW) contracted supply from the Mindanao Geothermal Power Plant in North Cotabato.

First Gen subsidiary Energy Development Corp. operates the geothermal facility.

The deal was facilitated under the government’s Retail Competition and Open Access (RCOA) scheme.

This program allows entities that consume at least 500 kilowatts a month to buy from retailers other than the existing suppliers in their area.

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RCOA’s commercial operations in Mindanao only began in March 2024.

“Transitioning to direct RE supply under RCOA comes with challenges, but the benefits far outweigh them,” said Carlo Vega, chief engagement officer of First Gen.

NSIG president Takenori Kawachino, meanwhile, said the group will continue to accelerate its decarbonization efforts in the local market.

First Gen is a major power generation firm in the Philippines, with 1,651 megawatts of total capacity from a portfolio of 26 power plants. These run on geothermal, hydro, wind, and solar energy.