President Ferdinand Marcos Jr. has awarded a third service contract to Koloma Inc. for the exploration of naturally occurring hydrogen in western Zambales, expanding the Philippines’ efforts to develop indigenous energy resources as the government seeks to strengthen long-term energy security and reduce dependence on imported fuels.
Service Contract (SC) No. 92 grants the U.S.-based company exclusive rights to explore for natural, or geologic, hydrogen in western Zambales under the Department of Energy’s (DOE) indigenous energy exploration program.
The latest award follows two service contracts granted to Koloma in October 2025 after the Philippines conducted what the DOE described as the world’s first competitive bid round dedicated to natural hydrogen exploration.
The three contracts now cover more than 4,100 square kilometers across Central Luzon and western Zambales, reinforcing the government’s strategy of evaluating emerging indigenous energy resources that could complement the country’s growing renewable energy capacity.
“Expanding our indigenous energy resources remains central to our pursuit of a secure, reliable, and sustainable energy future,” Energy Secretary Sharon S. Garin said.
“The award of Service Contract No. 92 builds on the ongoing exploration activities in Central Luzon and reflects our commitment to responsibly evaluating the country’s natural hydrogen potential. Should commercially viable deposits be confirmed, natural hydrogen could become an important addition to the Philippines’ future energy mix, strengthening energy security, attracting investments, creating new economic opportunities, and providing a zero-emission fuel source for the power sector,” she added.
Natural hydrogen—also known as white or geologic hydrogen—is generated naturally beneath the Earth’s surface, unlike conventional hydrogen that is produced through industrial processes.
Because it does not require energy-intensive manufacturing, it is being studied globally as a potentially low-carbon and cost-competitive fuel if commercially recoverable deposits are discovered.
The DOE said geological studies have identified parts of Central Luzon and western Luzon as among the world’s most promising areas for naturally occurring hydrogen, positioning the Philippines among the countries exploring the emerging energy resource.
Koloma Chief Executive Officer Pete Johnson welcomed the award, saying the company remains committed to advancing exploration activities in partnership with the Philippine government.
“We are honored to deepen our partnership with the Government of the Philippines to pursue what could be a transformative opportunity for the country in terms of energy security and economic growth. We are grateful for the government’s vision and leadership in advancing natural hydrogen exploration,” Johnson said.
Koloma has begun two-dimensional seismic surveys under its first two Philippine service contracts and is deploying advanced geoscience techniques, proprietary data and exploration technologies to assess the country’s natural hydrogen potential.
The latest contract comes as the Marcos administration continues to accelerate the development of domestic energy resources to improve energy security while supporting the country’s energy transition.
Alongside record investments in solar, wind, battery energy storage systems and geothermal projects, the DOE has been pursuing frontier energy resources that could diversify the Philippines’ future energy mix.
The agency has identified indigenous energy development as a key pillar of its strategy to lessen the country’s reliance on imported fossil fuels, which continue to expose consumers to volatile global fuel prices.
Officials have said commercially viable natural hydrogen resources, if confirmed, could provide a new source of zero-emission fuel for power generation and industrial applications.
The award also builds on the government’s earlier decision to open the country’s first natural hydrogen exploration areas through a competitive bidding process, making the Philippines one of the first countries globally to establish a regulatory framework for exploring the emerging resource.
The DOE said it will continue promoting responsible exploration and encouraging investments in innovative energy technologies as it works toward a more secure, reliable, affordable and sustainable energy future for the Philippines.
