Real Steel Corp. (RSC) signed a partnership with Singapore-based TotalEnergies ENEOS over the weekend to install a 16.8 megawatt solar rooftop system at its cutting-edge manufacturing facility in San Simon, Pampanga.
RSC said in a statement the project aims to significantly reduce operational expenses and the carbon footprint of the nation’s first high-speed rolling mill.
“Real Steel Corp. is dedicated to spearheading sustainable practices within the steel industry. Under President Ferdinand Marcos Jr., the Philippines will be focused on infrastructure development and this will propel the steel demand,” RSC chief finance officer William Chen said.
“By implementing the largest rooftop solar PV system in the Philippines, we are accelerating the production of lower carbon, high-quality steel products for the Philippine market,” Chen said.
The solar rooftop project will generate 26,000 megawatt- hours (MWh) of renewable electricity annually from the over 22,000 solar modules to be installed.
This will lead to a substantial cost savings for the RSC facility and a reduction in the company’s carbon emissions by about 12,800 tons of CO2 per year. The reduction is equivalent to planting 200,000 trees.
Under the agreement, and through a tailored business model, TotalEnergies ENEOS will install and maintain the PV system, while RSC will be the operator and owner of the asset from the commissioning.
TotalEnergies ENEOS proposed a business model that ensures a neutral cash flow for RSC for the first 10 years of engagement.
RSC will fully benefit from the asset for its entire lifespan of around 30 years.
“We are thrilled to collaborate with RSC in providing their facilities with renewable energy and to actively contribute to their long-term sustainability and growth objectives. We are dedicated to supporting RSC as a ‘green lane strategic investment’ in the Philippines Development Plan 2023-2028,” TotalEnergies ENEOS renewables distributed generation Asia director Elodie Renaud said.
“As a leading solar service provider for commercial and industrial businesses, TotalEnergies ENEOS is committed to aiding companies like RSC in reducing their energy costs and carbon footprint through our expertise in tailored renewable solutions,” he said.
The signing of the agreement on Oct. 26, 2023, was witnessed by executives of RSC and TotalEnergies ENEOS as well as by Department of Energy – Renewable Energy Management Bureau director Marissa Cerezo and deputy head of mission of the Embassy of France in Manila Remy Tirouttouvarayane.
“On behalf of the Department of Energy, we laud RSC’s initiative to lead the transition of steel manufacturing industry towards a greener and more sustainable future. This agreement with TotalEnergies will certainly contribute in our efforts to bring the Philippines closer to our goal of increasing the share of renewable energy in power generation by 50 percent in 2040,” Cerezo said.
Tirouttouvarayane praised the deal between RSC and TotalEnergies ENEOS as an outcome of the partnership between the Philippine and France in the energy sector.
“The steel industry is at the heart of economic activity and a major contributor to the development of the Philippines. Like Many industries, it has to face up the challenges of energy transition,” he said.
Tirouttouvarayane said RSC is leading the way for the whole local industry by installing solar rooftop system to its facility to reduce its carbon footprint.
“Presidents Marcos and Macron have agreed on defining energy security as one of the priorities of our bilateral cooperation. I am very pleased to witness that the French-Philippine partnership in the energy sector also translates into private sector-led projects,” he said.
TotalEnergies ENEOS, established in 2022, is a 50/50 joint venture between TotalEnergies and ENEOS to develop onsite B2B solar distributed generation across Asia.
It is based in Singapore with a plan to develop 2,000 MW of decentralized solar capacity over the next five years.