Holcim Philippines signs 25-MWp solar PPA with Peak Energy for two cement plants

Holcim Philippines has signed a long-term power purchase agreement with Peak Energy to install a 25-MWp behind-the-meter solar system at its two cement plants, Peak Energy said in a statement Feb. 4.

The agreement comes as producers seek to curb power costs and reduce emissions amid volatile energy markets, the company said.

The project will supply solar power to Holcim's Bacnotan plant in La Union with 13 MWp of capacity and its Norzagaray plant in Bulacan with 12 MWp, generating about 40 GWh/year of electricity, according to the statement. The system is expected to reduce CO2 emissions by roughly 28,500 metric tons/year.

Peak Energy will handle the design, construction and long-term operation of the solar assets, while Holcim will procure the electricity generated, the company said.

"Clean power is now a strategic asset for industry leaders seeking long-term price stability and cost savings," Peak Energy CEO Gavin Adda said, adding that the project demonstrates how large-scale industrial users can integrate renewables without disrupting operations.

Market participants in Southeast Asia said the Holcim-Peak Energy solar partnership aligns with the Philippines' decarbonization road map, which promotes reduced reliance on coal through alternative fuels and renewable energy.

The move reflects a broader industry push to manage energy costs and carbon exposure, though the market participants said that near-term impacts on cement pricing are likely to remain limited as adoption varies among producers.

Platts, part of S&P Global Energy, assessed cement (ASTM type I) FOB Vietnam at $38/metric ton on Feb. 5, up from $37.50/mt the previous week. Platts assessed cement clinker FOB Vietnam at $33.50/mt, up from $33.25/mt over the same period.