2 Hydrogen contracts about 200 kilometres from the capital city, Manila, are unique in identifying bid areas purposely for hydrogen exploration. Submissions Deadline 27 AUG and Announcements 24 SEP 2024.
Applications have been received for the public auction to develop hydrogen sources in the country for power generation from companies from Australia, Europe and North America.
The Philippines Department of Energy (DOE) has offered two areas for hydrogen exploration —one is in Zambales and the other is at the western portion of Central Luzon. The bid areas will close on August 27, 2024.
Energy Undersecretary Alessandro Sales said “These hydrogen contracts are in fact novel in today’s world because apparently, it’s only the Philippines that has bid an area purposely for hydrogen exploration.”
The interest from international firms to include Australia, Europe and North America, highlights the growing importance of Hydrogen as a clean energy source. By the Philippines exploring naturally occuring Hydrogen, it could offer a sustainable alternative to more energy-intensive electrolysis processess.
The bidding process is heating up for submissions. The successful applicant must demonstate a robust undertsanding of the resource potential and an effective plan to map and test opportunities.
Early 2024 the DOE issued Department Circular No. 2024-01-0001 to incentivize entities that will help the government secure its power supply by investing in hydrogen energy for power generation.
Under the Philippine Bid Round, the DOE offered two pre-determined areas (PDAs) for the exploration of native hydrogen exploration in the Zambales-Pangasinan area. PDA-PH-1 and PDA-PH-2 cover 134,096 and 96,439 hectares, respectively.
Drilling a well may cost anywhere from P1.1 billion to P5 billion, depending on the depth and the area it covers.
“The naturally occurring hydrogen has been discovered in Mali and in France so that explains also the high interest on the part of the Europeans. I am sure that even our East Asian neighbors will also be looking at the opportunities in this area,” said DOE Secretary Raphael Lotilla.
Under the policy, hydrogen energy projects with the primary purpose of producing, importing and exporting green hydrogen and green hydrogen derivatives for power generation and other applications may avail certain incentives from the government.
These include income tax holiday, special tax rates, net operating loss carry-over, tax exemption of carbon credits, zero percent value added tax rate and exemption from duties on renewable energy (RE) machinery, equipment and materials.
More Information from Philippine Government: HERE+
