PH’s plans for hydrogen energy are attracting interest abroad

Author: Jordeene B. Lagare – 31 seconds ago

According to the Department of Energy (DOE), “numerous” companies from Australia, Europe and North America have expressed interest in developing hydrogen sources for power generation in the country.

Energy Undersecretary Alessandro Sales said the Department of Energy was “pleasantly surprised by the level of interest” from international players in participating in future hydrogen contract bids. “These hydrogen contracts are actually new in today’s world because apparently only the Philippines has intentionally offered the area for hydrogen exploration,” Sales said.

DOE has offered two hydrogen exploration areas – one is in Zambales and the other in western Central Luzon.

The Commission will evaluate all applications in August.

Energy Secretary Raphael Lotilla said the discovery of natural hydrogen deposits in Mali and Europe was one of the reasons for the “strong interest” from European entities in considering hydrogen exploration.

“I am sure that even our East Asian neighbors will also look for opportunities in this area,” Lotilla said.

Signed in January this year, the Department of Energy issued Department Circular No. 2024-01-0001 to encourage entities that will help the government secure energy supplies by investing in hydrogen energy for power generation.

This DOE policy governs the national policy and overall framework, action plan and guidance for hydrogen in the energy sector.

It also consolidates and harmonizes all existing emissions to ensure and accelerate investment in the safe, effective and efficient development, production and use of hydrogen.

Under the policy, hydrogen energy projects whose primary purpose is the production, import and export of green hydrogen and green hydrogen derivatives for power generation and other uses can benefit from certain government incentives.

These include an income tax holiday, special tax rates, net operating loss carryforwards, tax relief for carbon credits, a zero per cent value added tax rate and duty relief on renewable energy (RE) machinery, equipment and materials.

The Department of Energy issued this policy recognizing hydrogen as another viable alternative and cleaner energy source and aiming to increase the use of renewable energy sources across the country to meet future requirements.

“Optimally managed potential for the use of hydrogen resources will play a major role in improving the country’s energy security by reducing dependence on imported fossil fuels and in achieving the country’s goal of a low-emission future,” the circular stated.