Koloma Targets Fourth Philippine Hydrogen Block in Offshore Palawan Push

Fourth Contract Bid

Koloma Inc., the Denver-based native hydrogen explorer, has nominated a 712,000-hectare offshore block in the East Palawan Basin for exploration, marking its fourth service contract application in the Philippines. The Department of Energy opened the area to competitive bidding on 4 September, with rival applications due by 14 October and a PHP 1 million application fee required.

The firm already holds three service contracts for native hydrogen in the Philippines. In July 2026, Manila awarded Koloma Service Contract 92, covering western Zambales. That followed two earlier agreements, SC 83 and SC 84, both in Central Luzon, granted in 2025. The Palawan nomination would extend the company's footprint into offshore waters for the first time.

Ground Work Underway

Koloma has begun exploration in Pangasinan with a 2D seismic survey designed to map subsurface geology and pinpoint hydrogen-bearing rock formations. Initial geological sampling returned results that warranted the expanded programme, according to the Department of Energy. Drilling is expected to start in late 2026 or the first quarter of 2027, depending on permitting and equipment mobilisation.

Native hydrogen, also called geologic or white hydrogen, accumulates naturally in underground reservoirs through geological processes, distinct from the steam methane reforming or electrolysis routes that produce grey, blue or green hydrogen. The Philippines is among a small group of jurisdictions, including Australia, Oman and parts of the United States, actively licensing native hydrogen exploration.

Energy Mix Context

Energy Secretary Sharon Garin framed the hydrogen contracts as part of a broader strategy to diversify the country's generation portfolio. Coal currently accounts for roughly 60 per cent of the Philippine power mix, with renewables at approximately 25 per cent, according to department data. Native hydrogen, if proven commercially viable, would add a domestic zero-carbon fuel source that requires no imported feedstock or renewable electricity input.

The Philippines imports the bulk of its fossil fuels and has set a target of 35 per cent renewable energy in the generation mix by 2030 and 50 per cent by 2040. Geothermal, hydro and solar make up most of the current renewable capacity, with wind and biomass contributing smaller shares.

Regional Race

Koloma's expansion in the Philippines mirrors a broader Asia-Pacific scramble for native hydrogen acreage. In Australia, several exploration permits have been granted in South Australia and Queensland, while South Korea's state-owned Korea National Oil Corporation signed a memorandum of understanding with Oman's Ministry of Energy and Minerals in early 2026 to study hydrogen potential in the Dhofar region. Japan's JOGMEC is funding desktop studies in multiple countries.

The Philippines' regulatory framework for native hydrogen remains under development. The service contracts granted to Koloma follow the same basic structure as conventional oil and gas production-sharing agreements, with exploration, appraisal and development phases, though fiscal terms and royalty rates have not been disclosed publicly.

Commercial Uncertainty

No native hydrogen project anywhere in the world has yet reached commercial production, and technical questions remain around flow rates, reservoir pressure and the economics of purification and transport. A handful of wells in Mali and the United States have demonstrated sustained hydrogen flow, but none has been connected to industrial off-takers or power plants.

If Koloma's drilling programme confirms reserves at scale and acceptable purity, the company would need to secure off-take agreements, build compression and pipeline infrastructure, and navigate safety and storage regulations for a fuel with very different handling characteristics from natural gas. The Department of Energy has not published cost or volume projections.

The October bidding deadline will determine whether Koloma faces competition for the East Palawan block or proceeds as the sole applicant. Under Philippine law, if no challenger submits a conforming bid, the original applicant may negotiate a service contract directly with the government.