Diversified conglomerate Lucio Tan Group (LTG) has partnered with the First Gen group (First Gen), the country’s leading renewable energy (RE) producer, as the Group begins its strategic move to green energy.
LT Group and PAL Holdings president Lucio C. Tan III expressed his optimism with this development as the Group starts diversifying its energy supply and reducing its dependence on non-renewable fuels.
“As we continue to grow, we want to do so in a responsible and prudent way. This partnership is just the beginning of our broader efforts to ensure a reliable energy supply for businesses across the Group. Ultimately, our goal is to create meaningful economic and environmental impact, helping build a more resilient future for both people and the planet,” he said.
The agreement between LTG and First Gen was finalized in late 2025 with supply start dates staggered across the conglomerate’s various facilities from late 2025 to early 2026. Under the agreement, LTG and affiliate companies Philippine Airlines (PAL), Lufthansa Technik Philippines (LTP), Macroasia SATS Food Industries Corporation, Macroasia Catering Services, Inc. (MACS),
Grandspan Development Corporation, and Absolut Distillers will receive more than 21 megawatts (MW) of power supply from the First Gen group’s Tongonan Geothermal Power Plant in Leyte.
Likewise, six projects of the Group’s real estate arm Eton Properties will be provided with more than 8 MW of electricity as part of the agreement. Among these real estate projects are the 13-story Cyberpod Building, the 21-story Three Cyberpod Centris and 24-story Cyberpod Five, which are housing business process outsourcing companies in Quezon City, as well as the mixed-use property development Eton WestEnd Square in Makati City.
The same supply agreement requires First Gen to provide PAL with more than 3 MW of geothermal energy for the airline’s Maintenance Base Complex, Inflight Center, and its headquarters Lucio K. Tan, Jr. Center in Pasay City. These sites represent the heart of the airline’s operations, housing the corporate headquarters, logistics, catering, and back-office support essential for daily flights.
Another 3.9 MW of geothermal power is allocated to LTP for the company’s aircraft maintenance, repair and overhauling facilities; 1.8 MW to the in-flight and corporate food-catering facilities of MACS; 2.7 MW to bioethanol production plant Absolut Distillers; and 700 kilowatts to construction and steel fabrication company Grandspan Development Corporation.
First Gen president and chief operating officer Francis Giles Puno lauded the partnership. “The fulfillment of this partnership sends a powerful message that companies across aviation, real estate, manufacturing, and hospitality can lead the way towards a low-carbon future,” he said.
He described the entry of LTG into clean energy utilization as “a clear statement of leadership” because it demonstrates that ESG principles are not just words on a page, but the foundation of long-term competitiveness.
He also highlighted the wisdom of choosing geothermal power as source of energy for critical operations of companies, because “geothermal doesn’t choose the time of day. It will deliver to you power 24/7 and immune to the fluctuations of the sun and wind.”
