'White gold' beneath Zambales? Philippines expands natural hydrogen hunt in high-stakes clean energy drive

New Zambales exploration tests promise of underground hydrogen as clean fuel

Last updated:
Jay Hilotin, Senior Assistant Editor
A view of the Subic Bay Freeport Zone (SBFZ) north of Manila, Philippines is a special economic and tourism hub in the Philippines, located across Olongapo City, Zambales, and Bataan. Built on a former American naval base, it is now a bustling economic zone managed by the Subic Bay Metropolitan Authority (SBMA) offering duty-free shopping, lush rainforests, and safe business environments.
A view of the Subic Bay Freeport Zone (SBFZ) north of Manila, Philippines is a special economic and tourism hub in the Philippines, located across Olongapo City, Zambales, and Bataan. Built on a former American naval base, it is now a bustling economic zone managed by the Subic Bay Metropolitan Authority (SBMA) offering duty-free shopping, lush rainforests, and safe business environments.
SBMA

Manila: The Philippine government is accelerating its search for naturally occurring hydrogen, expanding exploration efforts in Zambales after President Ferdinand Marcos Jr. approved a new service contract granting Colorado-based energy company Koloma Inc. additional rights to study the country's underground hydrogen potential.

The agreement allows the US-based firm to conduct further geological studies in Zambales, a province increasingly viewed by scientists as one of Southeast Asia's most promising locations for naturally occurring — or "white" — hydrogen.

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The latest contract marks another step in the government's strategy to determine whether naturally produced hydrogen could become a future domestic source of clean energy alongside geothermal, solar, wind, and natural gas.

The Department of Energy (DOE) announced that Philippine President Ferdinand Marcos Jr signed Service Contract (SC) No. 92, giving Koloma its third natural hydrogen exploration contract in the Philippines.

Why this matters

Unlike conventional hydrogen — which must be manufactured using electricity or fossil fuels — natural hydrogen is generated underground through geological processes over millions of years.

If commercially recoverable deposits exist, they could significantly lower the cost of producing hydrogen fuel because extraction would resemble natural gas production rather than energy-intensive industrial manufacturing.

Supporters say successful discoveries could:

  • reduce Philippine dependence on imported fossil fuels;

  • support long-term energy security;

  • create a new export industry;

  • help decarbonize heavy industries and transportation.

However, experts caution that commercial production remains uncertain, as only a handful of countries have identified economically viable natural hydrogen resources.

Why Zambales?

Scientists have long been interested in western Luzon because of its ophiolite formations — large sections of Earth's mantle that were pushed to the surface millions of years ago.

These ultramafic rocks can undergo serpentinisation, a natural chemical reaction between water and iron-rich minerals that releases hydrogen gas.

The same geological conditions have attracted research projects in:

  • Mali

  • Albania

  • Oman

  • Australia

  • parts of the United States

Koloma believes similar conditions in Zambales could hold significant natural hydrogen resources.

What Koloma is doing

Koloma, a Denver-area startup backed by major technology and climate investors, specialises exclusively in exploring naturally occurring hydrogen.

Rather than drilling immediately for production, the company first conducts:

  • geological mapping

  • geochemical sampling

  • seismic surveys

  • subsurface modeling

  • exploratory drilling

Only after sufficient evidence would commercial extraction become possible.

The new Philippine contract expands these exploration activities.

Not the first contract

The latest agreement is Koloma's third service contract in the Philippines, signaling increasing confidence by both the company and the DOE in the country's geological potential.

The government has gradually opened exploration areas as part of its broader push to diversify future energy sources.

Officials say exploration remains in its early stages and no commercial reserves have yet been confirmed.

Global race for "white hydrogen"

Natural hydrogen has become one of the fastest-growing frontiers in clean-energy exploration.

Until recently, hydrogen strategies focused on:

Type How it's produced

  • Gray hydrogen --> Natural gas with high carbon emissions

  • Blue hydrogen --> Natural gas with carbon capture

  • Green hydrogen --> Water electrolysis using renewable electricity

  • White (natural) hydrogen --> Naturally occurring underground deposits

The discovery of commercial natural hydrogen fields could reshape the economics of hydrogen because production costs may be substantially lower than manufactured hydrogen.

Major energy companies, venture capital firms, and governments have begun investing heavily in exploration.

Potential benefits for the Philippines

If commercially viable deposits are discovered, the Philippines could eventually:

  • strengthen energy independence;

  • reduce oil and LNG imports;

  • develop a new clean-energy industry;

  • attract additional foreign investment;

  • support future hydrogen-powered transport and manufacturing.

However, industry experts stress that exploration success does not guarantee commercial production, which depends on reservoir size, flow rates, extraction costs, environmental safeguards, and market demand.

Challenges ahead

Several hurdles remain before natural hydrogen can become a commercial industry in the Philippines:

  • confirming sufficient underground hydrogen volumes;

  • developing extraction technologies;

  • building transportation and storage infrastructure;

  • establishing environmental regulations;

  • proving long-term economic viability.

Many natural hydrogen projects worldwide remain in the exploration stage.

What's next?

Koloma is expected to continue geological surveys and exploratory work under Service Contract No. 92.

If promising hydrogen concentrations are identified, the project could move into exploratory drilling and resource evaluation before any production decisions are made.

For the DOE, the expansion reflects a broader effort to position the Philippines as an emerging player in next-generation clean energy.

Whether Zambales ultimately becomes a commercial source of "white hydrogen" remains uncertain, but the latest contract underscores growing international interest in the country's unique geology — and in a resource that some scientists believe could transform the global hydrogen economy.

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