Dyna Drug Goes Geothermal to Power Greener, More Reliable Warehouses

Dyna Drug Corp., one of the Philippines’ long-established pharmaceutical distributors, has taken a major step toward greener operations by sourcing renewable power from First Gen Corp. under a new supply agreement that places geothermal energy at the heart of its warehouse operations.

The deal, which became effective on November 26, will allow the company to operate its logistics and storage facilities in Pasig City and Quezon City using clean, stable electricity drawn from First Gen’s geothermal portfolio.

At the core of the agreement is the delivery of at least 145 kilowatts (kW) of renewable energy to Dyna Drug’s major warehouses. The capacity figure is significant for a business that handles temperature-sensitive pharmaceutical products and requires uninterrupted power around the clock. The electricity will come from the Bacon-Manito geothermal complex in Bicol, a facility operated by Energy Development Corp., First Gen’s geothermal subsidiary.

For Dyna Drug, the move reflects a long-term commitment to lowering its environmental footprint while strengthening the reliability of its critical operations. As company president Jacinto Dy explained, “Transitioning to more sustainable solutions for our operations and minimizing our environmental footprint is our bold vision with tangible actions to improve the ecosystem.”

(Also read: PH Powers Up Clean Energy with $170M Geothermal Boost)

Powering Pharmaceutical Logistics with Baseload Renewables

Unlike solar or wind, which depend on weather and daylight, geothermal energy provides what the industry refers to as “baseload” power—electricity that is available every hour of the day. This characteristic makes it particularly suitable for pharmaceutical warehousing, where refrigeration systems, climate controls, and automated inventory platforms must operate continuously.

First Gen has emphasized that geothermal energy offers precisely the stability needed for such environments. Carlo Vega, the company’s chief customer engagement officer, highlighted how the partnership meets the unique needs of the pharmaceutical sector.

The new arrangement supports Dyna Drug’s expansive distribution network. What began as a small grocery store in 1915 has evolved into a nationwide pharmaceutical wholesaler serving more than 3,000 retail drugstores across the Philippines. With that scale, even brief power disruptions can have cascading effects on product integrity, delivery schedules, and overall service reliability. Geothermal energy’s consistency helps shield the company from such risks.

First Gen’s Expanding Geothermal Footprint

For First Gen, the Dyna Drug contract is another milestone in a broader strategy to deepen its leadership in renewable energy, particularly geothermal power. The company is already the country’s largest producer of clean energy, managing a diversified portfolio that exceeds 1,700 megawatts (MW) across geothermal, hydro, wind, and solar assets.

Geothermal, however, remains the backbone of its operations. The Bacon-Manito complex—source of Dyna Drug’s new power supply—recently underwent further expansion with the addition of the 22-MW Tanawon geothermal project. This development signals the group’s aggressive push to unlock more of the Philippines’ vast geothermal potential.

Beyond Luzon, First Gen is also exploring new opportunities in Mindanao, where its Amacan geothermal project could, if successful, contribute an estimated 70 to 100 MW of fresh capacity to the national grid. These potential additions underline how geothermal continues to anchor the company’s long-term growth plans, even as it diversifies into other renewable technologies.

Vega reaffirmed First Gen’s broader mission in supporting corporate decarbonization, stating that the company remains committed to assisting partners like Dyna Drug as they transition to cleaner energy sources.

(Also read: PHILRECA Urges Equitable Funding to Meet 2028 Rural Electrification Goal)

Sustainability Meets Business Continuity

The partnership illustrates a growing trend among Philippine industrial and commercial firms: locking in renewable power not only as a climate initiative but also as a strategic business decision. Warehouses, manufacturing plants, and logistics hubs increasingly require energy solutions that are both environmentally responsible and operationally dependable.

For Dyna Drug, the geothermal shift brings together these two priorities. The company can reduce emissions tied to conventional power sources while ensuring its facilities continue to meet the demanding requirements of pharmaceutical storage and distribution. This is especially important given the scale of its nationwide operations, where reliability is not just a cost issue but a matter of patient safety and public trust.

From First Gen’s perspective, the agreement demonstrates how geothermal energy can be positioned as a practical solution for companies that need clean energy without sacrificing performance. By supplying power directly from one of its major geothermal facilities, First Gen is helping to make renewable energy a mainstream option for mission-critical industries.

Sources:

https://business.inquirer.net/566136/dyna-drug-taps-first-gen-to-power-pharma-warehouses

https://manilastandard.net/business/314684490/dyna-drug-taps-first-gen-for-renewable-power.html

https://mb.com.ph/2025/12/24/fgen-secures-geothermal-deal-to-power-pharma-giants-logistics