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Steel maker shifts to renewable energy via First Gen deal

CLEAN ENERGY. The Mahanagdong geothermal power plant of Energy Development Corp., a unit of First Gen Corp., in Leyte. The power plant is supplying 600 kilowatts of clean energy to steel producer Puresteel Manufacturing Corp. in Mandaue, Cebu. (Photo courtesy of First Gen)

MANILA – A Cebu-based steel manufacturer and property developer is set to become a carbon-neutral firm by 2025 as it completely shifts to renewable energy (RE) by tapping First Gen Corp. as its power supplier.

In a statement Thursday, First Gen said the company now supplies the  total 2,100 kilowatts (KW) power requirements of the Chioson Group of Companies from geothermal power plants of Energy Development Corp. (EDC), a unit of First Gen.

The Chioson Group has likewise tapped First Gen anew to supply the 600-kW clean energy requirements of Puresteel Manufacturing Corp. in Mandaue, Cebu. The power supply comes from EDC geothermal plant in Leyte.

Puresteel manufactures and distributes steel products like c-purlins, corrugated sheets, square tubes, rigid steel conduit pipes, and rectangular tubes. Last year, First Gen and Chioson Group had an agreement to power Chioson Development Corp. (CDC) with 1,500 kW clean energy from EDC’s Leyte and Bicol geothermal facilities.

“We offered to partner with the Chioson Group after finding out about its carbon neutrality goal. By offering competitive power rates, we can help the Chioson Group pursue its sustainability goal, while at the same time improving its competitiveness in the market,” First Gen vice president Carlo Vega said.

Aside from geothermal plants, First Gen’s RE portfolio includes wind, solar and hydropower. It also owns and operates natural gas facilities, and has a total of 3,495 megawatts of installed capacity from these power plants.

Puresteel chief executive officer and CDC chief operating officer Bernard Chioson said the company started its green energy just last year.

“Our main reason for switching to RE is to have a cleaner way to produce and manufacture steel. We want to reduce our carbon footprint by using green, renewable energy,” Chioson said. (PNA)

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