Chioson Group Renews Clean Power Deal with First Gen to Cut Emissions and Power Cebu Plants

Chioson Group of Companies and FLB Prime Holdings, Inc. have extended their partnership with First Gen Corporation to power their Cebu facilities with 2.1 megawatts (MW) of geothermal energy, reinforcing their commitment to sustainable operations.

Under the renewed supply agreement signed on April 30, First Gen will provide clean electricity sourced from geothermal power plants in Kananga and Ormoc City, Leyte, operated by its subsidiary Energy Development Corporation (EDC).

The partnership covers three Chioson-owned business units: steel manufacturing plants in Mandaue City through Chioson Development Corporation and Puresteel Manufacturing Corporation, and the FLB Corporate Center in Cebu City under FLB Industries Inc.

The agreement builds on a partnership first established in 2020. Over the past five years, Chioson Group has reportedly avoided at least five million tons of carbon dioxide emissions by sourcing power from First Gen. “Every steel product we make leaves behind the lowest carbon footprint possible,” said Bernard Chioson, Chief Operating Officer of Chioson Development Corporation.

First Gen Vice President for Sales and Marketing Arlene Sy welcomed the renewed agreement and emphasized the company’s ongoing efforts to expand geothermal energy production and support corporate decarbonization.

“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,” Sy said.

EDC is the country’s largest geothermal producer, with 13 geothermal power plants and a combined installed capacity of nearly 1,200 MW, accounting for about 60% of the Philippines’ total geothermal capacity. First Gen’s renewable energy portfolio also includes hydro, wind, and solar with over 400 MW of capacity, and it operates four natural gas-fired plants totaling 2,017 MW.

Chioson Group’s decision to continue sourcing from geothermal energy underscores its long-term goal of achieving carbon neutrality and promoting sustainable manufacturing practices in the steel and property sectors.

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