SM Prime explores potential partnership with Japanese firm for waste-to-fuel solutions

The prominent real estate developer in Southeast Asia, SM Prime Holdings, Inc. (SM Prime), has recently entered into a memorandum of understanding with GUUN Co. Ltd. from Japan. This agreement aims to explore the potential for a partnership focused on implementing waste management solutions. Specifically, the partnership aims to recycle waste paper and plastics to create 'fluff fuel,' which serves as an alternative energy source.

Fluff Fuels belong to the category of RDF (Refuse Derived Fuel) and are produced by shredding and compressing plastics, papers, and fibers. These fuels find application in industries such as cement manufacturing, paper mills, and power companies in Japan.

SM Prime Chairman of the Executive Committee Hans T. Sy is positive that a partnership with GUUN will contribute to the waste reduction goals of the country. “Today, Japan’s waste management and recycling technology is among the most advanced in the world,” he said. “There is no better partner for SM because we do not just talk about being big, we make sure we do it; we do not talk about being environment friendly but we do take bold steps to save the environment. I am looking forward to growing with GUUN as among leaders in solving environmental issues in the Philippines.”

GUUN Co., Ltd., established in March 2001 and headquartered in Yokohama City, Japan, pioneered the production of fluff fuel from plastic waste in Inayawan, Cebu, in 2014. They recently inaugurated a P200-million, 2,400-square meter waste recycling plant in Tayud, Consolacion, Cebu. Japan's Ministry of the Environment has since adopted GUUN's waste-to-fuel technology as a model for advanced low-carbon technology innovation, with plans for further deployment in developing countries.

“This will be a milestone partnership for us,” GUNN Chief Executive Officer Shinji Fujieda said after the signing ceremony. "I understand very much how important waste management is for SM and for the Philippines and we look forward to more projects we can do with the properties of SM Prime.”

SM Prime’s initiatives for waste management include waste reduction and effective waste collection and segregation. Over the years, it has implemented programs such as Trash to Cash, Plastic Waste Collection, and E-Waste Collection that have contributed to reducing the total solid waste generation across its real estate portfolio.

Through its pioneering Trash to Cash recycling market, SM Prime has collected and recycled 1.4M kg of plastics, paper, metals, and others in 2022. “We have saved 16,766 trees from the 986,222 kg of paper recycled,” SM Prime disclosed in its 2022 Integrated Report to shareholders.

Meanwhile, SM’s Plastic Waste Collection program, a partnership with the Plastic Credit Exchange that was launched in February 2021, has accumulated 42,541kg of plastic waste from 14 mall sites. Also present in all its 83 SM Supermalls is the E-Waste Collection program for the responsible disposal of WEEE (Waste from Electrical and Electronic Equipment). This drive has helped process close to 7,000 kilograms of e-waste.