Shell Energy Philippines (SEPH) will be providing renewable energy (RE) to PMFTC Inc. and Asia Brewery Inc., two of the flagship companies of the Lucio Tan Group of Companies, as well as to Lufthansa Technik Philippines, its joint venture with Lufthansa Technik AG of Germany.

The supply of RE capacities to the Tan-led firms is under the ambit of retail competition and open access (RCOA) policy of the restructured power sector.

In particular, Shell will supply 15 megawatts of RE-generated electricity to ABI’s manufacturing facilities in Luzon – and that will serve as a tool for the Tan-led brewery company on its decarbonization strategy.

“The RE contract is one way to reduce ABI’s carbon footprint. ABI's other sustainability efforts include the recycling of broken or waste glass to produce new glass bottles and the manufacturing of bottles using lahar which comes from the 1990 Mt. Pinatubo eruption,” Shell conveyed.

According to SEPH General Manager and President Bernd Krukenberg “establishing strategic partnerships with the Lucio Tan Group of Companies is an opportunity for both our organizations to be on the frontline in building up the renewable power business on a national and global scale.”

He added their company is “driven to serve our public by being at the forefront of the energy transition. We're doing this around the world, and we're extremely happy that we are also able to do so in the Philippines.”

On a global scale, Shell has been ordered by a court in The Hague in 2019, for it to significantly pare its carbon emissions – at the scale of 45-percent by the end of 2030.

The Philippines is one energy market that Shell has been exploring aggressively to fulfill that mandate given the government’s push for an ‘energy transition agenda’ onward to rebalancing a power mix that will give premium to RE installations in the years ahead.

The patronage of cleaner energy technologies by commercial and industrial end-users would not just be a potent force that will aid businesses in their environmental, social and governance (ESG) compliance but also in achieving mid-century net zero goals.

Shell emphasized that collaborations with clients like the LT Group signals its “expansion in supplying alternative sources of energy to major industries, while business leaders and iconic brands take a significant step in adopting sustainability in their production and supply chain processes.”

PMFTC Director of Manufacturing Nicolas Souvlakis noted the business tie-up that their company had cemented with Shell on RE power supply procurement heralds a “new relationship not only in terms of being an electricity provider. We can partner in certain projects, share our experience, benefit as well from their expertise, and continuously make our business more sustainable.”

The manufacturing plants of PMFTC that already switched to RE are those in Batangas and Marikina; and such will underpin the firm’s sustainability journey.

Shell similarly hinted that the other Tan group companies – Philippine Airlines, Philippine National Bank and Eton Properties Philippines, Inc. – will soon join the bandwagon of ‘woke corporates’ that will be shifting energy use to cleaner RE technologies.