The Philippine Department of Energy (DOE) and the Ministry of Energy of the Kingdom of Saudi Arabia (KSA) are set to hold a series of bilateral meetings to develop a roadmap for implementing the Memorandum of Understanding (MOU) on energy cooperation, signed on 14 October 2024 by Philippine Energy Secretary Raphael P.M. Lotilla and Saudi Energy Minister Prince Abdulaziz bin Salman Al Saud in Saudi Arabia.
The roadmap is expected to be finalized in three months and will be presented to Minister Al Saud and Secretary Lotilla. For the Philippines, Undersecretary Alessandro O. Sales has been tasked to lead the bilateral meetings.
“I welcome the joint efforts by both countries to implement the provisions of the MOU, which is a direct follow-through of the discussions held during President Ferdinand Marcos Jr.’s visit to Saudi Arabia in October last year. During that visit, Saudi state-owned companies expressed strong interest in investing in the Philippine energy sector,” Secretary Lotilla said.
The MOU outlines key areas of collaboration, including petroleum derivatives, native hydrogen exploration, sustainable aviation fuel (SAF), digital technology for electrical systems management, and energy efficiency.
“Prince Abdulaziz and his team expressed interest in our native or naturally occurring hydrogen resources. Given Saudi Arabia’s extensive expertise in the exploration and development of upstream sectors, this cooperation holds promising benefits for both countries,” Secretary Lotilla noted.
Naturally occurring hydrogen forms primarily in two major geological settings: Precambrian crystalline shields and serpentinized ultramafic rocks, which are abundant in the Philippines. Earlier this year, two prospect areas in the Zambales Ophiolite Complex, roughly 150 kilometers northwest of Manila, were offered for hydrogen exploration, with awards to winning bidders forthcoming.
On SAF, an environmentally friendly alternative to fossil-based jet fuel, the International Civil Aviation Organization (ICAO) has set global targets for SAF usage in commercial and civilian aviation. One approved pathway for SAF production is the use of cracked coconuts as a feedstock. As the world’s second-largest coconut producer at nearly 15 million metric tons annually, the Philippines could leverage these coconuts, typically unsuitable for food or oil production, to support SAF production.
“We will also jointly explore the application of digital technology and artificial intelligence (AI) to enhance the management of our electrical systems and broader energy infrastructure,” Secretary Lotilla added. Digital technology and AI have the potential to revolutionize the energy sector by enabling real-time monitoring, predictive maintenance, and energy forecasting. This collaboration aims to strengthen the country’s energy network by enabling smarter grids, automated control systems, and data-driven decision-making that can reduce waste, enhance resource utilization, and bolster energy security.
The MOU further emphasizes cooperation on energy efficiency and conservation. Saudi Arabia, traditionally known for its vast oil reserves, has advanced its energy efficiency goals through the Saudi Energy Efficiency Program (SEEP), which focuses on regulations, standards, and incentives. By partnering with Saudi Arabia, the Philippines seeks to adopt cutting-edge energy efficiency technologies and best practices that could lower energy consumption, reduce costs, and contribute to sustainability.
This cooperation, through a well-defined roadmap, underscores the Philippines’ commitment to energy security, economic growth, and sustainable development, as it benefits from Saudi Arabia’s extensive experience and technological expertise. ###