By Sheldeen Joy Talavera, Reporter
GREEN HYDROGEN could bolster the Philippines’ energy security over the medium to long term, but high costs remain a major hurdle to its development, analysts said.
“Based on recent developments on the policy and investment framework in the Philippines, green hydrogen at this point can be viewed as a medium- to long-term strategic option,” Adoracion M. Navarro, a senior research fellow at the Philippine Institute for Development Studies, told BusinessWorld.
Ms. Navarro said the technology could support long-duration energy storage, produce clean fuels, balance renewable power supply across seasons, and cut emissions from industries.
However, she cited high costs and the need to develop significant infrastructure for large-scale deployment.
“Technological cost reductions still need to happen, and supporting infrastructure needs to be developed to enable large-scale deployment,” she said.
Aside from energy applications, green hydrogen could also be useful for fertilizer, shipping, industrial heat, and other sectors that are difficult to electrify, according to Joey D. Ocon, co-convenor of think tank Center for Energy Research and Policy.
Mr. Ocon, however, said hydrogen remains a costly option in most use cases in the Philippines and should be focused on applications where direct electrification is difficult.
“Hydrogen should be used where direct electrification is difficult (quite limited given the country’s lack of industrial capacity), not where batteries, pumped storage, and renewable electricity can already do the job more efficiently,” he said in an interview.
Jun Hao Ng, assistant economist for Asia Macro at Oxford Economics, said battery energy storage and smart grids have immediate roles to play in stabilizing the grid, while hydrogen may have to wait until the country’s physical infrastructure is mature enough to support it.
“Green hydrogen is likely to play a longer-term role, given the higher costs and infrastructure requirements involved,” he said.
The Department of Energy (DoE) recently updated its framework for hydrogen in the energy sector, positioning hydrogen utilization as a key measure toward decarbonization.
The guidelines also formally integrated hydrogen into the nation’s climate and security planning.
“In recognition of its role in the energy transition, the manufacture of hydrogen and hydrogen derivatives from RE (renewable energy) resources or dedicated RE facilities (green hydrogen and green hydrogen derivatives) shall be preferred,” the DoE said.
While green hydrogen requires renewable electricity and water for production, naturally occurring hydrogen could be extracted directly from underground geological formations.
The Philippines is exploring both types of hydrogen as potential sources of lower-carbon energy, while also seeking to reduce dependence on imported fuels and tap indigenous resources.
The government has so far awarded three hydrogen service contracts — all to US-based Koloma, Inc., allowing the company to explore for naturally occurring hydrogen in Central Luzon.
Koloma has commenced its 2D seismic survey to begin mapping the subsurface and identify prospective areas for exploration of potential native hydrogen resources in Pangasinan.
According to the DoE, geological studies have identified the Philippines as among the world’s most promising areas for naturally occurring hydrogen.
“We are very hopeful that things will proceed as planned, and we hope that we will be lucky enough and be the first country in the world to produce from contract naturally occurring hydrogen,” Energy Undersecretary Alessandro O. Sales said.