DoE seeks challengers for hydrogen exploration site in southern Zambales

By Sheldeen Joy Talavera, Reporter

THE Department of Energy (DoE) is inviting interested industry players to submit competing proposals to explore potential native hydrogen resources in a nominated area in southern Zambales, with four more in the pipeline.

In an invitation published on its website, the DoE said that interested companies can submit a challenge for a nominated area spanning 436,000 hectares to secure a contract under the Philippine Conventional Energy Contracting Program.

Applicants may submit their counter offers until Dec. 9, 11 a.m.

Edgar Benedict C. Cutiongco, president of the Philippine Petroleum Association, said that the newly nominated area application for native hydrogen exploration marks “a strategic expansion of the Philippines’ hydrogen frontier.”

Southern Zambales — part of the geologically significant Zambales mountain range — contains ultramafic rocks capable of producing native hydrogen through a natural geochemical process called serpentinization, he said.

“This nomination signals growing momentum in the search for naturally occurring hydrogen, also known as white hydrogen, which is gaining global traction as a clean energy investment,” Mr. Cutiongco told BusinessWorld.

Demujin F. Antiporda, DoE director for the Energy Resource Development Bureau, told BusinessWorld that there are four more nominated areas that will be up for challenge. These include two hydrogen contracts, and two development and production petroleum service contracts.

Mr. Antiporda said that foreign firms submitted these nominated areas.

“We are the first one who offered a bid round in the world for hydrogen,” he said, adding that hydrogen development is still at an early stage globally.

The Philippine government recently awarded eight new petroleum service contracts, representing a potential investment of around $207 million over a seven-year exploration period.

The awarding of service contracts provides an opportunity to explore potential petroleum and hydrogen resources in key areas across the Sulu Sea, Cagayan, Cebu, Northwest Palawan, East Palawan, and Central Luzon.

Several local and foreign companies secured petroleum service contracts, including Pangilinan-led PXP Energy Corp., Australia’s Triangle Energy (Global) Limited and Gas 2 Grid Pte. Ltd, United Kingdom’s Sunda Energy Plc., Israel’s Ratio Petroleum Ltd, and US-based Koloma, Inc.

With contracts in place, the companies can start their respective work programs, which include geological and geophysical studies, seismic surveys, and drilling activities, as appropriate, to assess the potential of the contract areas.

While seeking to increase the utilization of indigenous petroleum resources, the Philippines is also exploring the potential of hydrogen as an alternative fuel to reduce dependence on imported oil.

The Philippines sees the potential of the development and domestic production of hydrogen and its derivatives as a “promising, innovative, and eco-friendly” energy solution that can substantially support the ongoing energy transition efforts.

“With multiple ultramafic-rich zones across the archipelago, the country is uniquely positioned to lead in this emerging field,” Mr. Cutiongco said.

“The combination of favorable geology and a progressive fiscal regime makes native hydrogen exploration a compelling next step beyond traditional hydrocarbon development.”

Mr. Cutiongco said that this would not only strengthen the Philippines’ energy roadmap but also open new avenues for investment, research and regional collaborations with its Association of Southeast Asian Nations peers.