This strategic move forms part of Axelum’s broader sustainability agenda aimed at transitioning its business operations to renewable energy (RE).
Under the deal, First Gen will supply up to 5.2 megawatts (MW) of geothermal electricity to power Axelum’s coconut manufacturing facility in Medina, Misamis Oriental.
The energy will be sourced from Mt. Apo Geothermal Power Plant, a facility operated by Energy Development Corp. (EDC), a subsidiary of First Gen and the country’s top producer of geothermal energy.
Axelum president and COO Henry J. Raperoga, in a statement, said: “This initiative forms an integral part of our core sustainability agenda and demonstrates our serious commitment to building climate resiliency. From a broader view, this move will also provide us with a reliable energy supply leading to operational cost efficiencies, lower carbon emissions and positive environmental impacts in the long-term.”
The partnership is enabled through the Retail Competition and Open Access (RCOA) mechanism under the Electric Power Industry Reform Act (EPIRA) of 2001, which allows qualified consumers to choose their electricity provider.
Carlo Vega, First Gen’s chief engagement officer, shared his optimism about the collaboration: “It is our privilege to partner with Axelum to help drive sustainability in the manufacture and export of one of our country’s major commodities. Geothermal power is the only RE technology that can run 24/7 and can support major manufacturing operations.”
A recognized sustainability leader in the Philippine coconut industry, Axelum implements a zero-waste philosophy by utilizing coconut shells to fuel industrial boilers that generate manufacturing steam. Axelum also pursues a reforestation program that aims to grow young coconut trees for long-term productivity and climate mitigation through carbon sequestration.
Meanwhile, First Gen continues to expand its renewable energy portfolio, operating 13 geothermal power plants nationwide with a combined capacity of nearly 1,200 MW—representing about 60 percent of the country’s total geothermal capacity.
It also generates over 400 MW from other renewable sources such as hydro, wind, and solar, while supplementing the grid with 2,017 MW of natural gas-fired capacity to ensure a balanced, low-carbon power mix. — Ed: Corrie S. Narisma
