Fueling the future: SM Prime unveils groundbreaking waste-to-energy partnership

SM Prime has entered a joint venture with GUUN Co. Ltd (GUUN), with SM Prime holding 70% of the equity of the Philippine joint venture company.

Executive Committee Hans Sy and GUUN CEO Shinji Fujieda shake hands during the signing of a memorandum of understanding to explore waste management solutions, recycling waste paper and plastics into “fluff fuel” for alternative energy.

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, aligning with its mission to “maintain harmony between the earth and society by creating a happy environment for the future.”

United in this mission, SM Prime partnered with GUUN to actively participate in developing infrastructure for systematic waste management and resource recovery, following the best practices of Japan. The 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 the Local Government Units (LGUs).

GUUN Philippine Branch Senior Managing Director and General Manager Takeshi Konishi (second from right) shares best practices in Japan for sustainable alternatives to solid fossil fuels.

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 further implementation of recovery or reduction techniques, ensuring that waste is no longer wasted.

SM Prime joins forces with GUUN to develop infrastructure for waste management, aiming to minimize landfill impact across SM Prime and non-SM Prime properties.

SM Prime Holdings Chairman of the Executive Committee Hans Sy, emphasizing a commitment to a positive impact on local communities, shared, "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.”

Underscoring their dedication to making a positive impact on the Philippines, GUUN Co. Ltd. CEO Shinji Fujieda stated, “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.”

Department of Environment and Natural Resources (DENR) Secretary Toni Yulo-Loyzaga emphasized the importance of such partnerships in advancing sustainable waste management practices. She said, "The DENR continues to collaborate with development partners and the private sector in tackling the challenge of solid waste management. Implementing industrial-scale, appropriate transition technologies for segregation and processing is a crucial step toward achieving a circular economy. Partnerships like the one between SM Prime and GUUN play a vital role in shaping a sustainable future.” (SM Supermalls)