Philippines Energy Hydrogen-Ammonia Roadmap

The Philippine Government has developed the country’s “Hydrogen and Fusion Energy Roadmap” to contribute to carbon neutrality and energy transition harnessing the potential of hydrogen and ammonia as fuels for energy applications. Given their zero-emission properties, hydrogen and ammonia offer opportunities for decarbonizing power generation and transportation. Due to the high costs associated with hydrogen production, the roadmap and policy support in promoting hydrogen power will play a vital role in harnessing this emerging technology.

The Philippine Department of Energy (DOE) has started the harmonization and coordination of efforts to conduct the required assessment of sustainable and alternative low- to zero-carbon new and with hydrogen and ammonia’s inclusion in the country’s energy mix. In 2022, coal energy accounted for 59.6% of all power generation within the Philippines. Renewable energy sources comprised 24.3% of the market, with geothermal energy holding the largest stake at 9.3%. Hydrogen and ammonia energy production are high-efficiency with zero or near-zero emissions with applications in the transportation, commercial, and industrial sectors among others.

The DOE envisions the use of:

(1) Blue hydrogen (H2) replacing a certain portion of natural gas power plants with clean energy scenarios albeit dependent on the percentage of replacement of 10%, 20%, and 30% in 2040; 

(2) application of same Blue H2 penetration rates in coal plants that for every 10% replacement, system cost increases by 2.7%; and 

(3) replacing coal plants with either Blue or Grey Hydrogen would be advantageous as it further reduces cost.

Philippine energy companies have taken several initiatives in hydrogen and ammonia fuel project development.  These include exploration of ammonia co-firing on coal power plants and to evaluate the potential of hydrogen fuel applications in the power generation, decarbonization strategies that will assess the option of converting natural gas-fired power plants to repower with clean hydrogen, and various pilot studies to investigate the potential of green hydrogen and fuel cell technology in the Philippines.

U.S. companies seeking to enter the market should focus on pilot projects to prove the validity of the technology, identify challenges, and strengthen public awareness of the hydrogen and ammonia industry.  Such projects can increase technological advancement and pave the way for wider adoption of hydrogen fuel throughout the country. Furthermore, the establishment of the hydrogen industry within the Philippines is contingent on stakeholders, investors, and finances. To secure the necessary capital for research, development, and infrastructure, companies should look to establish local supply chains for these hydrogen sources to encourage investors to capitalize on the industry. Both fiscal and non-fiscal incentives for investors are crucial to compete with more established energy sources. Finally, companies should seek to gain funding from a variety of sources such as grants from the Philippine Government and private investors.  

U.S. suppliers in this sector should consider connect with your local U.S. Commercial Service office in the United States to schedule an appointment for a consultation.

For more information contact the U.S. Commercial Service in the Philippines: Thess Sula, Commercial Specialist, Thess.Sula@trade.gov.