Philippines Could Become the World's First Geologic Hydrogen Hub
- The Philippines reportedly holds the largest natural hydrogen seeps on Earth, putting it at the center of a new global hunt for cheap, clean hydrogen.
- Koloma, backed by Bill Gates and Amazon, says geologic hydrogen could cost less than $1 per kilogram, undercutting both green and gray hydrogen production.
- Commercial-scale extraction is still years away, with Koloma's CEO cautioning against rushing the science before the technology is proven.
The Philippines is shaping up to be ground zero for the global geologic hydrogen revolution. The Southeast Asian nation reportedly has the largest natural hydrogen seeps anywhere on Earth, indicating that huge volumes of hydrogen could be stored under the ground, waiting to be exploited. If the Philippines is able to become the world’s first test case for a commercially viable geologic hydrogen operation, it would be groundbreaking for the country’s economy and energy security, not to mention enormously disruptive for global energy markets and the decarbonization movement writ large.
Hydrogen has long been touted as a potential silver bullet solution to decarbonizing hard-to-abate sectors like steelmaking and shipping, as hydrogen can be combusted at high temperatures like thermal coal or heavy fuel oil, but leaves behind nothing but water vapor when burned. The problem is that hydrogen is only as green as the methods used to make it, and green hydrogen – produced using clean energies – simply can’t compete economically with gray hydrogen, which is made using fossil fuels. Moreover, the use of clean energies to produce hydrogen is often worse for climate goals than just using that clean energy directly.
Geologic hydrogen could sidestep these issues by sourcing natural hydrogen directly from the Earth. The technology is in its infancy, but experts believe that not only is it feasible, it could be done very, very cheaply. The United States Department of Energy estimates that geologic hydrogen could potentially be produced for less than $1 per kilogram. That represents an enormous savings compared to the current green hydrogen cost of approximately $3.50–$6.00 per kilogram. In fact, that would make it even cheaper than hydrogen made using fossil fuels, flipping the equation on the current economics of green and gray hydrogen production, possibly opening up new feasible pathways to reaching net-zero carbon emissions.
While the hype around green hydrogen had all but fizzled out in recent years, the current energy crisis emanating out of the Strait of Hormuz has reignited global interest in the clean hydrogen industry to generate new and alternative energy supply chains. Leaders in China, Europe, and the United States have all announced provisions to breathe new life into the research and development of clean hydrogen in recent months.
A number of startups have popped up in the wake of this Department of Energy report and have been searching for promising locations to start testing the theory. The leading firm Koloma, backed by heavy hitters including Bill Gates and Amazon, has zeroed in on the Philippines as the best choice for exploration. “The Philippines has the largest natural hydrogen seeps anywhere on the planet,” Koloma CEO Pete Johnson recently told Forbes. “We have reason to believe that these seeps are connected to very large accumulations.”
If the project pans out, it would be a game-changer for the clean energy industry on a global scale, and for the economy of the Philippines at a pivotal point in that country’s development. Not only is the Philippines one of the countries hit hardest by oil price volatility driven by the war in Iran, it’s also “the fastest-growing country in Asia, with an economy that's growing really fast and modernizing really fast,” Johnson went on to say. “And their incremental unit of power is made by burning diesel. If your alternative is importing diesel or expensive LNG and you've got hydrogen that competes head-to-head against LNG costs, that's going to make sense.”
However, that kind of development is still years away. The science behind achieving the desired chemical reactions to extract viable hydrogen from natural deposits like those found so abundantly in the Philippines is nowhere near ready for commercial application. Just confirming just how much hydrogen can be produced in the Philippines will take another several years, according to reps from Koloma.
“If we get antsy and just start poking holes in the ground and kind of praying for success and not doing the right things in the middle, that's not going to be good for me, not going to be good for shareholders, and it would be terrible for the industry,” Johnson said. “I would love to have a bunch of big gushers in my portfolio right now. We have brought 90% plus hydrogen gas to the surface. We've tested it. We've verified it. We've found large accumulations. We're not sitting on something that's big and commercial yet.”
