French company pushes green hydrogen power in Mindanao

DAVAO CITY—Green hydrogen, a clean source of energy derived using a process that is powered by renewable sources like wind or sunlight, may soon gain more than just foothold but a transformative presence in the lives of Mindanaoans.

The French company Hydrogene de France (HDF) Energy is taking big steps to spread the technology to the region, starting in Olutanga Island in Zamboanga Sibugay and later in the provinces of Surigao del Norte and Agusan del Sur and Zamboanga City.

The long-term goal is to set up to 10 power plants in these areas and accelerate Mindanao’s shift to renewables and make them account for 50 percent of its energy mix by 2030.

Hydrogen power is produced through electrolysis, wherein electrical current is applied to split water molecules and separate the hydrogen from the oxygen components, with the former stored in tanks.

To produce green hydrogen, the apparatus used—called the electrolyser—is powered by renewable energy sources. (In contrast, black, grey or brown hydrogen is produced using energy derived from fossil fuels like coal or natural gas)

Mathieu Geze, president and director of HDF Energy Philippines, said the company would put up either solar or wind power farms on-site both to power the electrolysers and directly supply power to the local grid.

On July 19, Geze and local government representatives of Zamboanga Sibugay, Surigao de Norte, Agusan del Sur and Zamboanga City signed a memorandum of cooperation (MOC) to facilitate coordination, information-sharing and technical studies leading to the setup of hydrogen power plants in the target areas.

Also present as witnesses to the signing were Mindanao Development Authority (MinDA) Secretary Leo Tereso Magno and France’s ambassador to the Philippines, Marie Fontanel.

According to Geze, these initial projects are part of the 10 hydrogen power plants that HDF plans to put up in Mindanao in the coming years at an aggregate investment cost of roughly $1 billion.

Off-grid communities

Most of these projects would be located in hard-to-reach, off-grid communities or in towns and provinces with unstable power supply, he said in a media briefing after the signing.

Local officials welcomed the HDF Energy projects, expecting them to reduce electricity costs and address intermittent brownouts and unstable power supply in their areas.

In Surigao del Norte, for instance, people have endured unstable power supply for the longest time, which also resulted in high power rates, according to Rise Faith Recabo, the provincial administrator.

It is imperative to improve the power situation especially in the Siargao islands, the province’s primary tourist destination, Recabo said. “That’s why we welcome the project because once operational, it might help bring down power rates in our province.”

Trisha Goloran, head of the planning and development office of Agusan del Sur, said having a stable power supply was just as urgent in her province.

Raul Regondola, chair and administrator of the Zamboanga Economic Zone Authority, also said having a hydrogen power plant in Zamboanga City would also address the intermittent brownouts that occur “four to five times a day” even inside its 16,000-hectare special economic zone, which currently has 114 locators.

Once the plants are operational, HDF Energy will produce about 10 megawatts of hydrogen power for each site.

Where the need is real

Also at the MOC signing, Ambassador Fontanel said addressing climate change and boosting the transition to a green and sustainable future had been high on the French government’s diplomatic agenda for international partners like the Philippines. France relies on expert companies like HDF Energy to fulfill this commitment, she said.

She said she was most impressed by HDF’s commitment to reach areas in Mindanao where the power situation must be addressed.

“So far, because not that many foreign companies do look at Mindanao [for] many reasons, security among them… HDF has decided precisely to look at those territories where there is a real need… I’m really impressed by the works already been done by HDF,” Fontanel added.

MinDA Secretary Magno hailed the agreement as an achievement for the entire region.

Assistant Secretary Romeo Montenegro, who is also deputy executive director of MinDA, said the additional power supply coming from HDF helped the regional government body’s target to achieve a 50-50 renewable-to-fossil fuel energy ratio by 2030.

LGU cooperation crucial

Geze said HDF was currently in the process of securing the necessary government permits and negotiating with local cooperatives for eventual power distribution in the three provinces.

He said key to the project’s success would be the willingness of stakeholders, including the local government units, to provide the necessary support, such as in the identification and clearing of the land where the plants may be built.

In February this year, the Department of Energy issued guidelines for hydrogen investment incentives in the country to promote sustainable energy solutions and reduce dependence on traditional fossil fuels.

According to its Department Circular No. 2024-01-0001, stakeholders involved in hydrogen production, distribution, research and development, infrastructure establishment, and hydrogen fueling stations for transportation sectors will enjoy various perks and incentives provided by the government, such as certain tax exemptions.