Lucio Tan Group (LTG) and several affiliate companies are shifting part of their power requirements to renewable energy through a supply agreement with First Gen, covering key facilities across aviation, real estate, manufacturing, food services, and bioethanol production.

Under the agreement, LTG and affiliates including Philippine Airlines (PAL), Lufthansa Technik Philippines, Macroasia SATS Food Industries Corporation, Macroasia Catering Services, Grandspan Development Corporation, and Absolut Distillers will receive more than 21 megawatts of power supply from First Gen’s Tongonan Geothermal Power Plant in Leyte.

The agreement was finalized in late 2025, with supply start dates staggered across the conglomerate’s facilities from late 2025 to early 2026.

LT Group and PAL Holdings President Lucio C. Tan III said the partnership marks the start of the group’s broader efforts to diversify its energy supply and reduce dependence on non-renewable fuels.

“As we continue to grow, we want to do so in a responsible and prudent way. This partnership is just the beginning of our broader efforts to ensure a reliable energy supply for businesses across the Group,” Tan said.

“Ultimately, our goal is to create meaningful economic and environmental impact, helping build a more resilient future for both people and the planet,” he added.

PAL will receive more than 3 MW of geothermal energy for its Maintenance Base Complex, Inflight Center, and Lucio K. Tan Jr. Center in Pasay City.

The covered sites support the airline’s corporate headquarters, logistics, catering, and back-office operations that are essential to daily flights.

Six projects of Eton Properties will also receive more than 8 MW of electricity under the same agreement. These include Cyberpod Building, Three Cyberpod Centris, Cyberpod Five, and Eton WestEnd Square.

Other allocations include 3.9 MW for Lufthansa Technik Philippines’ aircraft maintenance, repair, and overhaul facilities; 1.8 MW for Macroasia Catering Services’ in-flight and corporate food-catering facilities; 2.7 MW for Absolut Distillers’ bioethanol production plant; and 700 kilowatts for Grandspan Development Corporation.

First Gen President and COO Francis Giles Puno said the partnership shows how companies across different industries can participate in the shift to cleaner power.

“The fulfillment of this partnership sends a powerful message that companies across aviation, real estate, manufacturing, and hospitality can lead the way towards a low-carbon future,” Puno said.

He added that LTG’s move into clean energy utilization shows that environmental, social, and governance principles can support long-term competitiveness.

Puno also highlighted geothermal energy’s role as a dependable renewable power source for critical operations.

“Geothermal doesn’t choose the time of day. It will deliver to you power 24/7 and is immune to the fluctuations of the sun and wind,” Puno explained.

First Gen has over 1,700 MW of combined renewable energy capacity across geothermal, hydro, wind, and solar facilities in the country.

Can more Philippine conglomerates shift critical operations to round-the-clock renewable power sources such as geothermal?

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