Hydrogen tech eyed for small power utilities

The National Power Corp. (Napocor) will study the viability of replacing its diesel-fired generators in off-grid areas with green hydrogen technology to accelerate its clean energy transition plans at small power utilities group (SPUG) plants.

Napocor, a government-owned and -controlled corporation that provides power generation to areas not connected to the main grid, on Monday signed a memorandum of understanding with the German-Philippine Chamber of Commerce and Industry (GPCCI) to conduct a three-phase feasibility study for green hydrogen and fuel technology in SPUG areas.

According to the World Bank, green hydrogen is produced through the use of renewably generated electricity that splits water molecules into hydrogen and oxygen.

“With our mandate to provide electricity to rural areas and our commitment to optimizing power generation assets, this collaboration presents an opportunity to modernize power systems and reduce emissions,” said Napocor president and chief executive officer Fernando Martin Roxas.

Reducing use of diesel

He added that Napocor’s partnership with GPCCI could help in significantly reducing the amount of diesel burned at SPUG plants, noting that Napocor was burning more than 100 million liters of diesel annually.

Napocor currently operates 281 mostly diesel-fired SPUG plants across the Philippines.

It is aiming to hybridize these plants to achieve the agency’s goal of operating on 100-percent renewable energy (RE) by 2028.

The comprehensive study, which will be funded by the German Federal Ministry for Environment, Nature Conservation and Nuclear Safety, will begin with the selection of two suitable sites for green hydrogen and fuel cell technologies, according to GPCCI.

Site selection

These sites will be selected depending on renewable resource availability, accessibility and community support.

The second phase, meanwhile, will involve two to three months of modeling of the selected sites and the presentation of results by German research firm Reiner Lemoine Institut.

The third and final phase will focus on evaluating the project results and public relations work, including an information campaign that will disseminate the results.

GPCCI president Stefan Schmitz said they have yet to select the two initial sites for the study, but clarified that they would prioritize SPUG areas in Visayas and Mindanao for the proposed replacement of diesel generators with green hydrogen fuel.

“The Philippines is experiencing rapid growth in energy demand and the existing fossil fuel generation capacity is unable to keep up with this growth in an environmentally friendly manner,” Schmitz said.

At present, the Philippines remains highly dependent on coal-fired power plants to meet consumers’ electricity needs. This is despite the government’s goal of increasing the share of RE in the country’s energy mix from the current 21 percent to 35 percent by 2030.

For its part, Napocor has pledged to halt its importation of diesel generating sets to help meet the country’s RE targets. INQ