The Philippine unit of global consumer goods giant Unilever PLC has renewed an agreement with First Gen Corp. to supply 10 megawatts of electricity from geothermal resources.
The deal, signed on Sept. 10 by officials from both companies, is part of Unilever’s ongoing program to reduce its carbon emissions. The renewed agreement will supply geothermal energy to seven production and distribution sites owned and operated by Unilever and its suppliers in Metro Manila, Cavite, Laguna, and Batangas.
These sites manufacture a wide range of Unilever products, including ice creams (Magnum, RFM), sauces and seasonings (Knorr, Lady’s Choice), and beauty, wellness, personal, and home care products (Dove, Rexona, Axe, Pepsodent, Breeze, Domex, and Surf).
The production sites have made the Philippines one of Unilever’s largest production hubs and a top market for its consumer goods. According to the company, its products are in nine out of 10 Filipino homes.
First Gen will source the power from its subsidiary Energy Development Corp.’s (EDC) geothermal facilities in the Bicol region, Tongonan in Leyte, and Palinpinon in Negros Oriental.
The use of geothermal energy, which can generate electricity on a baseload or 24/7 basis, supports Unilever’s long-term climate change transition program.
“Since 2017, First Gen has been our partner in helping us reduce the carbon footprint of our manufacturing operations with a steady supply of renewable energy,” said Rondell Torres, Unilever’s sustainability lead. “We are committed to continually use renewable energy for our factories and facilities to achieve our operational and sustainability ambitions.”
Arvind Sunderrajan, head of Unilever’s Supply Chain Foods – Greater Asia, emphasized the importance of partnerships in addressing climate change. “No single organization can tackle the climate crisis alone,” Sunderrajan said. “That’s why partnerships are at the heart of our approach.”
First Gen’s chief customer engagement officer, Carlo Vega, noted that both companies share similar concerns about climate change and are committed to decarbonizing their operations. “We are committed to supporting Unilever in achieving its business efficiency and sustainability goals,” Vega said.
First Gen, a pioneering power producer in the Philippines, built and operated the country’s first natural gas power plants in the 1990s. In 2007, it acquired EDC, which it states is the world’s largest vertically integrated geothermal power producer.
In addition to natural gas and geothermal, First Gen’s portfolio includes hydro, wind, and solar power platforms, contributing to the Philippines’ energy security and renewable energy transition.
EDC has gained global recognition for its expertise in geothermal energy development, focusing on delivering clean, reliable power while advancing environmental stewardship and sustainable development.
