Department of Environment and Natural Resources (DENR) Secretary Toni Yulo-Loyzaga sees the joint venture partnership of SM Prime, one of the largest integrated property developers in Southeast Asia, and Japanese firm GUNN limited as a step in the right direction in advancing sustainable waste management practices in the Philippines.

In an interview, “Partnerships like the one between SM Prime and GUUN play a vital role in shaping a sustainable future,” says Loyzaga.”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 crucial to achieving a circular economy.”

SM Prime, one of Southeast Asia’s largest integrated property developers, entered into a joint venture agreement with the Japanese firm GUNN Company Limited (GUNN) to enhance and promote the practice of waste-to-energy in the Philippines.

Hans Sy, chair of SM Prime, and GUNN CEO Shinji Fujieda shook hands while signing a Memorandum of Understanding (MOU) to explore waste management solutions, recycling waste paper and plastics into “fluff energy.”SM Prime holds 70% of the equity of the Philippine joint venture company.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.

GUUN’s “fluff fuel” is produced from non-recyclable and hard-to-recycle wastes through sorting, curating, and formulation to meet chemical limits. It is 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.

GUUN Co. Ltd is headquartered in Yokohama City, Japan, and operates material recovery, recycling facilities, and 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.”

“Fluff fuel” is one of the various solutions to control waste buildup in Japan. The partnership between SM Prime and GUUN will explore further implementing recovery or reduction techniques, ensuring that waste is no longer wasted.

This collaboration delves into enhancing the implementation of recovery techniques, ensuring a more efficient utilization of waste resources.

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 positively impacting 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 no doubt we can succeed.”