A powerful shift is underway in Philippine cement production, driven by a bold partnership aimed at drastically reducing carbon emissions. Holcim Philippines is joining forces with renewable energy provider Peak Energy to construct substantial solar power installations at two of its key plants.
The ambitious project will unfold in phases, beginning with the installation of a 13-megawatt peak (MWp) solar facility in Bacnotan, La Union, and a 12-MWp facility in Norzagaray, Bulacan. These ground-mounted solar photovoltaic (PV) systems represent a significant investment in a cleaner future for the industry.
Once fully operational in 2027, these installations are projected to generate around 40 gigawatt hours of clean energy annually. More importantly, they are expected to slash carbon dioxide emissions by an impressive 28,500 tons each year – a critical step in combating climate change.
This isn’t simply about environmental responsibility; it’s about fundamentally changing how cement is made. By integrating large-scale renewable energy directly into its manufacturing process, Holcim Philippines is paving the way for more sustainable, low-carbon building materials.
The financial structure of the agreement is particularly noteworthy. Holcim Philippines won’t shoulder any upfront investment costs. Peak Energy will fully fund, install, operate, and maintain the solar PV systems, with Holcim purchasing the generated electricity through a 20-year power purchase agreement.
This commitment to sustainability extends beyond solar power. Holcim Philippines recently completed a 358-million peso investment in an alternative fuel feeding system at its La Union plant, further reducing its carbon footprint.
The new feeding system will enable the plant to significantly increase its use of alternative fuels, lessening its dependence on imported fossil fuels and actively promoting circular economy practices through waste material co-processing. This innovation is expected to deliver a net carbon reduction of approximately 12% per ton of cementitious material produced.
These combined efforts – the solar projects and the alternative fuel system – position Holcim Philippines to not only meet its own carbon reduction targets but also contribute to the broader Holcim Group’s ambitious goal of achieving net zero emissions by 2050. The company also operates facilities in Misamis Oriental and Davao, hinting at potential future expansions of these green initiatives.
