Philippines Advances Hydrogen Exploration with Native Hydrogen Survey

Historical Pivot

It wasn’t until 2023 that hydrogen really entered the Philippines’ energy conversation—when the Department of Energy (DOE) rolled out its Hydrogen and Fusion Energy Roadmap. Then, late 2023 into early 2024, engineers couldn’t believe their luck: natural hydrogen seeps were confirmed in the Nagsasa field. That discovery put things into overdrive, and by October 2025 the DOE had approved seven fresh petroleum and hydrogen service contracts—that’s the biggest upstream uptick in decades. Among them, Service Contracts 83 and 84 stole the spotlight as the planet’s very first competitive bids for native hydrogen rights—definitely a bold pivot for the nation’s exploration strategy.

Exploration Takeoff

Fast-forward to this month, the DOE launched a major aerial geophysical survey across two western provinces under its native hydrogen initiative. U.S.-based Koloma is operating under those landmark service contracts, scouring over 230,000 hectares in Zambales (PDA-PH-1) and Pangasinan (PDA-PH-2). Since the final week of February, planes equipped with high-precision gravimeters and magnetometers have been painting a three-dimensional picture of what’s buried below—and they won’t wrap up until May.

This isn’t just a one-off flyover. The data they collect helps zero in on potential hydrogen exploration hotspots, targeting anomalies down to several kilometers deep. It’s a classic case of “measure twice, drill once,” setting the stage for cheaper, more efficient downstream work.

Why Pangasinan and Zambales

You might be wondering why those two provinces made the cut. Both sit on impressive ophiolite sequences—chunks of ancient ocean crust and upper mantle that got shoved ashore millions of years ago. In Zambales, the Nagsasa seeps were the smoking gun for commercial prospects. In Pangasinan, bubbling hot springs at Manleluag point to active water-rock reactions in olivine-rich ultramafic layers—nature’s own hydrogen factory in action.

Mechanism of Native Hydrogen Formation

Here’s the cool part: unlike industrial setups that need hefty power for electrolysis, native hydrogen comes from a slow-motion chemical show underground. When groundwater infiltrates ultramafic rocks loaded with olivine and pyroxene, oxidation reactions kick off over geological timescales, steadily releasing H₂. That gas can pool in porous traps, offering a zero-emission fuel without the usual electricity draw that green hydrogen demands—a win for sustainable energy.

Survey Techniques

Koloma’s survey aircraft are tricked out with gravimeters and magnetometers to sniff out minute shifts in gravity and magnetic fields. The raw readings feed into three-dimensional inversion models, revealing detailed ophiolite maps. Then, on the ground, teams chase down those anomalies with soil gas sampling (think portable sniffers), seismic profiling, and downhole tools to confirm whether we’re really sitting on hydrogen reservoirs.

Over at Ohio State University’s lab, geochemists are busy calibrating these models against real samples—rocks, fluids, even trace minerals. By matching model predictions with lab results, they refine forecasts for hydrogen saturation and reservoir quality, making sure future drilling isn’t shot in the dark.

Strategic Rationale

Why go through all this trouble? For the Philippines, tapping native hydrogen is a strategic jackpot. The Philippine Energy Plan stresses lowering fuel imports—a perennial drain on our balance of payments. Plus, it dovetails neatly with our decarbonization goals: 35% renewables by 2030, 50% by 2040. To put numbers on it, by the end of 2023 renewables made up roughly 30% of installed capacity and 22% of actual generation, and we tacked on about 0.7 GW in 2024 alone.

And it’s official: Department Order No. DO2024-04-0004 entrenched policy support for hydrogen. It sets out green hydrogen production standards and rolls out perks like corporate tax holidays, duty-free import of key equipment, accelerated depreciation, and tax credits for local investments. Even though native hydrogen skirts the electrolysis step, these incentives show the DOE’s serious about building a full-blown hydrogen economy.

Synergy with Green Hydrogen

That’s not to say green hydrogen is out of the picture. Electrolysers powered by renewable energy will still be crucial for certified zero-emission demand and grid balancing. The DOE’s roadmap envisions a hybrid supply chain where natural and green hydrogen back each other up—so when one source dips, the other picks up the slack, keeping energy flows smooth year-round.

Policy Incentives in Detail

Under DO2024-04-0004, developers get a buffet of benefits: corporate income tax holidays, duty-free access to plant components, accelerated depreciation schedules, and tax credits for domestically produced assets. The idea is to knock down financial barriers and lure both native hydrogen and green hydrogen projects to our shores.

Partnership and Capacity Building

A standout benefit of handing out SC 83 and SC 84 to Koloma is the partnership with its Ohio State University research arm. It’s not just about exploration—it’s also about upskilling local teams. Koloma’s experts are running workshops on advanced geochemical analysis, reservoir simulation, and best-in-class drilling practices. That kind of knowledge transfer is gold for building homegrown expertise in subsurface resource assessment.

Economic and Market Outlook

Sure, we’re still in the exploratory phase, but investors are already sniffing around Asia’s emerging hydrogen markets. If drilling confirms sizeable hydrogen reservoirs, the Philippines could become a competitive supplier of low-carbon hydrogen to steelmakers, chemical plants, and heavy-duty transport fleets across the region. The DOE’s Renewable Portfolio Standard and DO2024-04-0004 incentives are designed to spark public-private partnerships and unlock investment channels.

Financial players are eyeing multiple revenue streams—from direct hydrogen sales to carbon credit trading and long-term offtake agreements. And since natural hydrogen extraction generally costs less to operate than the electrolysis route, we might see a price advantage for a good chunk of time.

Potential Impacts

• Energy Security: Leveraging domestic hydrogen sources could cut our fuel import bill and shield us from volatile global markets.
• Climate Mitigation: Injecting hydrogen into our power and transport mix bolsters the Philippines’ industrial decarbonization efforts under the Paris Agreement.
• Regional Leadership: Securing the first competitive native hydrogen contracts sets the Philippines up as a Southeast Asian hydrogen trailblazer.
• Technology Advancement: Collaborating with Koloma and Ohio State accelerates local know-how in geoscience, drilling ops, and reservoir engineering.
• Job Creation: Exploration and potential commercial development will open doors for geologists, engineers, analysts, and more.
• Community Engagement: Any full-scale extraction will hinge on thorough environmental impact assessments and inclusive talks with local and indigenous communities.
• Infrastructure Needs: Bringing a confirmed field online means new pipelines, compression stations, storage terminals, and grid interconnections.
• Industrial Decarbonization: A steady supply of low-carbon hydrogen could catalyze ventures in ammonia, specialty chemicals, and fuel cell R&D.
• Policy Continuity: Investors will stick around only if regulations stay clear, consistent, and supportive of both native hydrogen and green hydrogen ventures.

Looking Ahead

That aerial survey is just the kickoff in a multi-phase exploration campaign. If subsequent drilling confirms hydrogen-rich reservoirs, the DOE will greenlight pilot extraction under enhanced oversight. And while we’re not yet churning out electrolysers or compressors locally, the roadmap flags plans to build up these manufacturing capabilities on home soil.

Charting the Hydrogen Frontier

As the world shifts toward sustainable energy, the Philippines’ bold foray into hydrogen exploration could redefine its clean energy narrative. From airborne sensors scanning ophiolite ridges to drill rigs lining up future test wells, this initiative shows how a strategic pivot can unlock a naturally occurring, zero-emission fuel. The next few months will be telling—if we can tap into this hidden reservoir, we’ll stake our claim in the global hydrogen economy.