Japanese recycling firm signs supply deal with First Gen

First Gen – GUUN

Japanese waste management and recycling firm, GUUN Co. Ltd, has entered a power supply deal with First Gen Corporation as it shifts to renewable energy sources to help achieve its goal of reducing 42% in CO2 emissions by 2023.

The agreement, which began in September 2022, entails a one-year geothermal power supply from Energy Development Corporation, the renewable energy subsidiary of First Gen. 

“Looking at all providers of this 24/7 source of RE, we chose to partner with First Gen because of its proven track record in supplying geothermal power to its customers all over the country,” GUUN senior managing director and general manager, Takeshi Konishi, said in a statement. 

GUUN’s Philippine branch in Consolacion, Cebu produces 8,000 tons of Fluff Fuel annually. This alternative fuel, made from waste plastics and residual waste, is used as a coal substitute in cement plants. 

However, this recycling process requires a significant amount of electricity, which primarily contributes to carbon dioxide emissions, since it is often sourced from coal.

GUUN has set a target for reducing emissions, based on its 2030 Scope 1 and 2 baseline data, and was officially recognized by the Science Based Targets initiative (SBTi) in August 2022. 

“[GUUN’s] mission is to find ways to directly or indirectly reduce its CO2 emissions in its recycling activities, GUUN decided to switch to geothermal energy for its source of power knowing that this type of clean energy provides baseload power,” First Gen said in a statement. 

The Lopez firm added that by utilizing geothermal energy, GUUN is expected to achieve a reduction of 50 to 55 percent in its CO2 emissions throughout its local recycling process, equivalent to a reduction of 261 tonnes of CO2.

“This greening of supply chains is necessary if we truly want to be a part of the solution to our climate crisis and at the same time, future-proof our businesses,” First Gen power marketing, trading, and economics vice president and head Carlo Vega said.