Philippines targets first native hydrogen drilling by year-end

MANILA, Philippines — US-based Koloma Inc. has kicked off native hydrogen exploration activities in Pangasinan, with the Department of Energy (DOE) expecting drilling to commence later this year.

“We are very hopeful that things will proceed as planned and we will be lucky enough to be the first country in the world to produce from contract naturally occurring hydrogen,” Energy Undersecretary Alessandro Sales told a press briefing yesterday.

Koloma, the operator of Service Contracts 83 and 84, launched its 2D seismic survey last week to map underground geological structures and identify promising areas for native hydrogen exploration.

The survey follows earlier geological sampling, which yielded initial findings that warranted further studies and exploration.

Koloma also completed an aero-gravity and magnetics survey covering nearly 28,000 line kilometers from March to early June to better understand the geology beneath the exploration area.

“Given the intense interest of Koloma, they are really advanced in the execution of their committed work program. So after the seismic, their next commitment is to drill the well,” Sales said.

He said drilling could begin by the end of this year or in the first quarter of 2027, but noted that it remains uncertain whether the exploration would confirm a large deposit to support commercial production.

“So it needs to be drilled, and we need to measure how much can be extracted from the ground,” Sales said.

Native hydrogen is a naturally occurring resource found beneath the Earth’s surface, unlike conventional hydrogen, which is produced through industrial processes.

If commercially viable reserves are confirmed, native hydrogen can emerge as an additional indigenous energy source to support the country’s clean energy transition.

According to Sales, Koloma has committed around $8 million to $9 million to carry out its seven-year work program covering its two native hydrogen contracts. Based on current foreign exchange rates, this is equivalent to around P492.9 million to P554.5 million.

The company is also gearing up to explore the western Zambales area under a new government service contract.

To provide investors with a clear regulatory framework, the DOE has integrated native hydrogen exploration into the country’s existing petroleum service contract system.

Under this framework, service contractors assume all technical, operational and financial risks associated with exploration.

This means no government funds are used for the exploration, development or production of native hydrogen resources.