Philippines sets out incentives for green H2

: Hydrogen
24/01/31

The Philippine department of energy has laid out a list of incentives for production and use of hydrogen and derivatives made from renewable power, biogas or biomass.

The government has defined green hydrogen as being produced through electrolysis powered by renewable energy or through the reforming of biogas or biochemical conversion of biomass. But unlike many other countries, it has not specified a carbon emissions threshold.

Incentives given to projects producing hydrogen via these pathways include tax breaks, duty exemptions from equipment and materials, tax exemption of carbon credits, tax credit on domestic capital equipment and services.

Projects targeting use of hydrogen fuel cells in transport as well as research and development of hydrogen technology and manufacturing of equipment also qualify for incentives such tax breaks and customs duty exemptions.

The document also paves the way for production of hydrogen from nuclear energy to benefit from certain incentives. The Philippines has one nuclear power plant in the Bataan province that was completed in the 1980s. But the plant was never commissioned because of earthquake safety concerns, especially in the aftermath of the 1986 Chernobyl disaster.

But the department of energy is actively considering a possible revival of the Bataan plant, according to the World Nuclear Association, as well as the construction of a new plant, possibly a small modular reactor.

The Philippines has so far not seen many hydrogen project announcements, although French firm HDF said it is planning a facility in the country

Last year, the Philippine government said it will be looking to facilitate the exploration of natural subsurface hydrogen.

By Pamela Machado

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