Department of Energy Invites Proposals for Hydrogen Exploration in Zambales

The Department of Energy (DoE) of the Philippines is calling for proposals from industry players interested in exploring native hydrogen resources in a designated area in southern Zambales. This initiative is part of a broader effort to enhance the country”s hydrogen capabilities, with four additional areas awaiting similar proposals.

According to a recent announcement on the DoE”s website, companies can submit their proposals for a specific area covering approximately 436,000 hectares, aiming to secure a contract under the Philippine Conventional Energy Contracting Program. The deadline for submissions is set for December 9 at 11 a.m.

Edgar Benedict C. Cutiongco, president of the Philippine Petroleum Association, remarked that the nomination of this area for native hydrogen exploration signifies a strategic growth in the country”s hydrogen sector. He highlighted that southern Zambales is geologically significant due to the presence of ultramafic rocks that can naturally produce hydrogen through a process known as serpentinization. “This nomination indicates increasing momentum in the quest for naturally occurring hydrogen, or white hydrogen, which is becoming an attractive clean energy investment globally,” Cutiongco expressed.

Demujin F. Antiporda, director at the DoE”s Energy Resource Development Bureau, noted that there are four additional areas that will also invite proposals, including two for hydrogen contracts and two for development and production petroleum service contracts. These nominated areas were put forward by foreign companies.

“We are the first to initiate a bidding round globally for hydrogen,” Antiporda stated, emphasizing that the development of hydrogen is still in its infancy on the global stage.

Recently, the Philippine government awarded eight new petroleum service contracts, signifying a potential investment of around $207 million over a seven-year exploration period. These contracts will allow exploration of both petroleum and hydrogen resources in key regions, including the Sulu Sea, Cagayan, Cebu, Northwest Palawan, East Palawan, and Central Luzon.

Several local and international firms, such as PXP Energy Corp., Triangle Energy (Global) Limited, Gas 2 Grid Pte. Ltd., Sunda Energy Plc., Ratio Petroleum Ltd., and Koloma, Inc., have secured these contracts. With these agreements established, the companies can commence various activities, including geological and geophysical studies, seismic surveys, and drilling operations to evaluate the potential of the designated areas.

As the Philippines aims to boost the use of indigenous petroleum resources, it is also focusing on hydrogen as a viable alternative fuel to decrease reliance on imported oil. The government recognizes the promise of developing and producing hydrogen and its derivatives as an innovative and environmentally friendly energy solution that can significantly aid in the ongoing energy transition. “With numerous ultramafic-rich zones throughout the archipelago, the Philippines is uniquely situated to excel in this emerging sector,” Cutiongco concluded. He added that the favorable geological conditions and a supportive regulatory framework make native hydrogen exploration a logical progression beyond conventional hydrocarbon development.

This initiative not only aims to enhance the energy landscape of the Philippines but also seeks to create new investment opportunities, foster research, and encourage regional cooperation among Association of Southeast Asian Nations members.