July 16, 2025
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Engtek’s Asaba Facility Now 100% Powered by Hydro, Cuts Coal Dependence in Laguna

  • July 7, 2025
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Engtek’s Asaba Facility Now 100% Powered by Hydro, Cuts Coal Dependence in Laguna

Engtek Group has completed the transition of its Laguna-based Asaba Manufacturing plant to 100% renewable hydroelectric power, marking a significant step toward the company’s ambitious emissions reduction targets.

The facility now draws electricity exclusively from First Gen Corporation‘s Pantabangan and Casecnan hydropower plants in Nueva Ecija, eliminating its reliance on coal-fired generation. This transition expands on Engtek’s existing partnership with First Gen, which began in 2022 when the company’s first Philippine facility adopted geothermal energy.

“By replacing coal-fired electricity with renewable hydro power, we expect a meaningful reduction in our carbon emissions,” said Asaba President Motohiro Asaba. The executive emphasized that the shift improves energy efficiency while supporting the group’s broader decarbonization goals.

Under the country’s Retail Competition and Open Access (RCOA) program, contestable customers like Engtek are allowed to select their power suppliers. This regulatory framework enabled the company to bypass traditional coal-based generation and source directly from First Gen’s renewable facilities.

In 2024, the Asaba facility recorded 3.64 tons of carbon dioxide equivalent (tCO₂e) emissions. The hydroelectric transition is expected to significantly reduce this figure as part of Engtek’s target to cut greenhouse gas emissions by 45% by 2030.

First Gen Chief Engagement Officer Carlo Vega welcomed the expanded collaboration during a ceremony on June 20, 2025, where the company presented Engtek with a Renewable Energy Plaque marking the facility’s official transition.

“We are pleased to support Engtek in its sustainability journey,” Vega said. “We thank Engtek for its continued trust.”

Engtek operates through its Philippine subsidiary Asaba Manufacturing, which supplies aluminum and zinc die-cast parts to the automotive sector. Founded in 1995, Asaba now functions under Engtek’s regional precision manufacturing group spanning Malaysia, Singapore, and the Philippines.

The company has made energy efficiency and clean energy adoption central to its environmental, social, and governance (ESG) commitments. The First Gen partnership represents a concrete step toward achieving these sustainability objectives.

First Gen ranks among the Philippines’ leading renewable energy producers, operating 300 MW of hydro capacity alongside 1,352 MW from solar, wind, and geothermal sources. The company also maintains 2,017 MW of natural gas capacity to support grid reliability while helping industries transition from coal to green energy.

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