FCC (Philippines) Corp., a subsidiary of Japan’s FCC CO., LTD. and a global supplier to major automotive and motorcycle brands including Honda, Yamaha, Suzuki, Kawasaki, Ford, Harley-Davidson, and BMW, has signed a 15-year power purchase agreement (PPA) with regional renewable energy developer Peak Energy. Under the agreement, Peak Energy will install a 1 megawatt-peak (1 MWp) rooftop solar PV system at FCC’s clutch systems manufacturing plant in Laguna.
The solar system is projected to generate roughly 1,500 megawatt-hours (MWh) of clean electricity in its first year. By supplying energy at a rate approximately 30% below standard grid tariffs, the project offers immediate operational savings while avoiding roughly 650 tons of carbon dioxide emissions annually—equivalent to burning nearly 252,000 liters of gasoline.
Under the fully funded agreement, Peak Energy takes full responsibility for designing, financing, constructing, owning, and operating the system. FCC Philippines simply purchases the power generated, allowing the manufacturer to cut carbon emissions and electricity costs without capital expenditure.
As global automotive and motorcycle Original Equipment Manufacturers (OEMs) place stricter demands on tier-one suppliers to reduce embedded scope 1 and 2 emissions, the deal reinforces FCC Philippines’ competitive edge. Parent company FCC CO., LTD. holds over 50% of the global motorcycle clutch market and has operated its production hub in the Philippines since 1993.
“This solar project represents an important milestone in FCC’s journey toward a more sustainable future,” said Tsuyoshi Nakada, President of FCC (Philippines) Corp. “As part of the FCC CO., LTD. Group’s commitment to achieve carbon neutrality by 2050, with a 50% reduction in carbon emissions by 2030, we continue to invest in initiatives that reduce our environmental footprint while strengthening the resilience of our operations. We are pleased to partner with Peak Energy in advancing these shared sustainability goals.”
The project builds on Peak Energy’s experience delivering renewable energy assets for major Japanese manufacturers across Asia, including JTEKT (Toyota Group) in Japan, AICA in Thailand, and Yokogawa in Singapore.
“Industrial buyers in the Philippines are increasingly looking for power that’s cheaper than the grid and shielded from imported fuel prices,” said Gavin Adda, CEO of Peak Energy. “This project delivers both, at a 30% discount to grid tariffs. We are glad to see FCC moving toward a developer with the financial strength and engineering capability to deliver at scale.”
The deal aligns with broader market trends in the Philippines, where high commercial power tariffs and the Department of Energy’s target of a 35% renewable energy mix by 2030 are accelerating corporate adoption of onsite clean energy solutions.
