The Philippines Govt. introduces incentives to push use of hydrogen for power generation
Source：https://malaya.com.ph/news_business/govt-introduces-incentives-to-push-use-of-hydrogen-for-power-generation-in-ph/
From：Taiwan Trade Center, Manila
Update Time：2024/03/22
The Department of Energy (DOE) has issued a circular to promote investments in utilizing hydrogen for energy production.
Under DOE Circular No. 2024-01-0001 signed by Energy Secretary Raphael Lotilla on January 12, incentives will be introduced to push the technology.
Hydrogen energy projects with the primary purpose of producing, importing and exporting green hydrogen and green hydrogen derivatives for power generation and other applications may avail income tax holiday and exemption from duties on renewable energy machinery, equipment and materials, the circular said.
They are also qualified for special realty tax rates on equipment and machinery; net operating loss carry-over; corporate tax rate; accelerated depreciation; zero percent value added tax rate; tax exemption of carbon credits; and tax credit on domestic capital equipment and services related to the installation of equipment and machinery.
The DOE said activities related to the application of hydrogen energy in the transport sector using fuel cells as well as projects that involve hydrogen and its derivatives from nuclear energy and even enterprises engaged in research and development, establishment of support infrastructure, production and manufacture of machinery, equipment, materials and components using hydrogen may also avail several different incentives.
The circular is also meant to govern the extraction of hydrogen fuel to accelerate the exploration, development and utilization of native hydrogen to contribute to the country’s energy security, create jobs and generate wealth.
The DOE defines native hydrogen as the natural occurrence of hydrogen gas in geologic formations that can be associated with methane and other hydrocarbon gases and can also be considered as mineral gas that may be governed by the government.
At present, hydrogen is being eyed for its potential to be co-fired with natural gas to make the latter’s combustion cleaner.
Last year, the National Power Corp. signed an agreement with the German-Philippine Chamber of Commerce and Industry to conduct feasibility studies on the use of green hydrogen and fuel cell technologies in off-grid areas of the Philippines.
The parties had said the collaboration aims to promote knowledge transfer, modernization opportunities and the economic achievement of clean and affordable energy.
The joint project will produce a comprehensive feasibility study that is expected to support the modernization of power generating assets in off-grid areas, by exploring the potential replacement of diesel-powered systems with green hydrogen and fuel cell technologies.
Source: https://malaya.com.ph/news_business/govt-introduces-incentives-to-push-use-of-hydrogen-for-power-generation-in-ph/