Waste-to-fuel partnership for a sustainable future
The SM Prime-GUUN joint venture aims to develop infrastructure for waste management to minimize landfill impact across SM Prime and non-SM Prime properties
SM Prime has entered into a joint venture with GUUN Co. Ltd. to actively participate in developing infrastructure for systematic waste management and resource recovery, following the best practices of Japan.
SM Prime holds 70 percent of the equity of the Philippine joint venture company.
GUUN Co. Ltd is headquartered in Yokohama City, Japan, and operates material recovery and recycling facilities, along with environmental solution services. Invited by the government of Cebu in 2014, GUUN initiated the production of fossil alternative fuels called “fluff fuel” from non-recyclable waste materials, aligned with its mission to “maintain harmony between the earth and society by creating a happy environment for the future.”
The SM PrimeGUUN joint venture aims to reduce the landfill impact from both SM Prime and non-SM Prime managed properties, complementing the material recovery facility operations of local government units.
GUUN’s “fluff fuel” is produced from non-recyclable and hard-to-recycle wastes through sorting, curating and formulation to meet chemical limits. It serves as an alternative to solid fossil fuels like coal, fueling cement kilns and industrial boilers in paper manufacturing and power plants.
This approach has proven effective in controlling landfilled waste in Japan, offering a second life for waste as productive fuels and creating opportunities for waste pickers to become formal waste sorters in these facilities.
“Fluff fuel” is one of the various solutions to control waste buildup in Japan. The partnership between SM Prime and GUUN will explore the further implementation of recovery or reduction techniques, ensuring that waste is no longer wasted.
SM Prime Holdings chairman of the Executive Committee Hans Sy, emphasizing the company’s commitment to a positive impact on local communities, said, “It is exciting for SM Prime to partner with GUUN Japan with a joint mission to bridge the gap between society and the environment in the Philippines through investing in their pioneering solid waste management technology, which will eventually benefit all the communities that SM Prime serves.”
GUUN Co. Ltd. CEO Shinji Fujieda stated for his part, “At GUUN, we are ready to make every effort to contribute significantly to the Philippines and evolve the resource circulation system. The partnership with SM Prime leaves us with no doubt that we can succeed.”