FCC (Philippines) Corp., a subsidiary of Japan’s FCC CO., LTD. and a global supplier of motorcycle clutch systems to leading automotive and two-wheeler manufacturers, has entered into a 15-year solar power purchase agreement (PPA) with Peak Energy to power its manufacturing facility in Laguna with onsite renewable energy.
The 1 MWp rooftop solar installation is expected to generate around 1,500 MWh of clean electricity during its first year of operation. The project will enable FCC Philippines to procure electricity at a cost approximately 30% lower than prevailing grid tariffs, while reducing its carbon footprint by an estimated 650 tonnes of CO₂ annually—equivalent to avoiding the consumption of nearly 252,000 litres of gasoline each year.
Under the long-term agreement, Peak Energy will be responsible for designing, financing, constructing, owning, operating, and maintaining the solar power system. This arrangement allows FCC Philippines to transition to renewable energy without any upfront capital investment, while benefiting from stable, cost-effective electricity throughout the contract period.
FCC CO., LTD. is the undisputed global leader in the motorcycle clutch market, with more than 50% global market share, and a leading supplier of automotive clutch components worldwide. The company and has manufactured in the Philippines since 1993, supplying integrated clutch systems not only to the four of the world’s four largest motorcycle OEMs, but also to other established global brands across both the two-wheel and four-wheel industries. Global automotive supply chains are under growing pressure to reduce embedded emissions, and the agreement gives FCC Philippines a concrete 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,” 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.”
“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.”
