FCC (Philippines) Corp., a subsidiary of Japan’s FCC CO., LTD. has signed a long-term solar agreement with Singapore-based renewable assets operator Peak Energy to power its clutch systems facility in Laguna with onsite renewable energy.
The duo said in a statement on Wednesday that the system is expected to generate approximately 1,500 MWh in its first year of operation from a 1 MWp onsite solar installation, delivering electricity to FCC Philippines at a price approximately 30 percent lower than grid tariffs.
This is expected to avoid approximately 650 tons of carbon dioxide (CO₂) annually, equivalent to avoiding the consumption of almost 252,000 liters of gasoline.
Under the 15-year agreement, Peak Energy will design, finance, construct, own and operate the solar system, with FCC Philippines purchasing the electricity generated at no upfront capital cost.
The structure allows FCC Philippines to access clean, competitively priced power while Peak Energy manages construction and ongoing operations and maintenance.
FCC CO., LTD. is a motorcycle clutch supplier, with more than 50 percent global market share. It is also a supplier of automotive clutch components worldwide.
The company has manufactured in the Philippines since 1993, supplying integrated clutch systems to motorcycle original equipment manufacturers (OEMs) and other global brands across both the two-wheel and four-wheel industries.
It is noted that global automotive supply chains are under growing pressure to reduce embedded emissions, and the agreement gives FCC Philippines a way to strengthen its competitiveness within that supply chain.
The agreement builds on Peak Energy’s track record with Japanese-parented manufacturers across the region, including JTEKT (Toyota Group) in Japan, AICA in Thailand and Yokogawa in Singapore.
FCC Philippines’ decision to choose Peak Energy reflects the same standard of engineering excellence and delivery experience that has earned these manufacturers’ trust, technical rigor, disciplined project execution and a track record of on-time, on-budget delivery that meets the exacting quality expectations Japanese corporates apply to their partners across Asia.
As industrial demand for lower-cost, predictable power grows, the Philippine market is naturally redirecting capacity toward developers with the financial strength, engineering capability and technology to execute and operate assets credibly at scale, supported by a Department of Energy target of 35% renewable energy share by 2030.
“Industrial buyers in the Philippines are increasingly looking for power that’s cheaper than the grid and shielded from imported fuel prices,
“This project delivers both, at a 30 percent discount to grid tariffs,” said Gavin Adda, Chief Executive Officer of Peak Energy.
Tsuyoshi Nakada, President of FCC (Philippines) Corp, said as part of the FCC CO., LTD., this solar project represents an important milestone in FCC’s journey toward a more sustainable future.
“As part of the FCC CO., LTD., Group’s commitment to achieve carbon neutrality by 2050, with a 50 percent reduction in carbon emissions by 2030, we continue to invest in initiatives that reduce our environmental footprint while strengthening the resilience of our operations,” he added.
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