Hydrogen is expected to play a crucial role in driving the green energy transition in the Philippines, although it will take some time before it becomes cost-effective, as analysts have noted.
Sam Reynolds, an analyst at the Institute for Energy Economics and Financial Analysis, said that hydrogen for power generation has a “long road ahead before it becomes a viable, affordable energy source.”
He said that green hydrogen, which is produced from renewables, costs up to $8 per kilogram, equivalent to $60 per million British thermal units, which is about six times of the price of LNG in Asia.
“Although the price of green hydrogen is expected to fall over the next several decades, this will depend on the Philippines’ ability to build out enough renewable energy capacity to both meet electricity demand and potential demand for hydrogen production,” he said.
However, the promised benefits of hydrogen remain enticing. Jephraim C. Manansala, the CDC for the Institute for Climate and Sustainable Cities, stated, “Hydrogen, whether explored from indigenous sources or produced from renewable energy, offers an opportunity to enhance our energy security and contribute to the energy transition.”
