The National Power Corporation (Napocor) is seeking to go green with its energy production by looking to replace its diesel-powered generators in off-grid locations with hydrogen technology, doubling down on plans to shift to clean energy at small power utilities group (SPUG) plants.
The government-owned and government-controlled corporation has been a key provider of energy to areas not linked to the main grid, which, by Monday, saw it signed a memorandum of understanding with the German-Philippine Chamber of Commerce and Industry (GPCCI) for a three-phase study involving green energy and fuel in SPUG areas.
Green hydrogen, per the World Bank, is made when water molecules are split into oxygen and hydrogen using renewable electricity.
Napocor President and CEO Fernando Martin Roxas said that the partnership between their company and GPCCI allows for “an opportunity to modernize power systems and reduce emissions.”
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Highlighting Napocor’s annual consumption of over 100 million liters of diesel in its energy production, the move to hydrogen technology is said to substantially reduce that number.
As of writing, Napocor has 281 SPUG plants across the country, all of which are largely dependent on diesel to operate.
However, it has been Napocor’s objective to make a total shift to renewable energy (RE) by 2028.
With funding from the German Federal Ministry for Environment, Nature Conservation and Nuclear Safety, the broad study will kickstart with the choosing of appropriate sites—one for green energy and another for fuel cell technologies, per GPCCI.
The criteria for the selection include renewable resource accessibility, availability, and community support.