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DEPARTMENT CIRCULAR NO. 0C€2024-ol-000! a

PROVIDING A NATIONAL POLICY AND GENERAL FRAMEWORK, ROADMAP,
AND GUIDELINES FOR HYDROGEN IN THE ENERGY SECTOR

WHEREAS, Section 2 of Republic Act (RA) No. 7638, as amended, or the
“Department of Energy (DOE) Act of 1992” declares it the policy of the State, among
others, to ensure a continuous, adequate, and economic supply of energy with the end
in view of ultimately achieving self-reliance in the country’s energy requirements
through the integrated and intensive exploration, production, management, and
development of the country’s indigenous energy sources;

WHEREAS, Section 4 of RA 7638, as amended, mandates the DOE to prepare,
integrate, coordinate, supervise and control plans, programs, projects and activities of
the Government related to energy exploration, development, utilization, distribution,
and conservation;

WHEREAS, Section 5 of RA 7638, as amended by RA 9136 or the “Electric Power
Industry Reform Act of 2001”, provides that the DOE shall have the power to, among
others, “(e)stablish and administer programs for the exploration, transportation,
marketing, distribution, utilization, conservation, stockpiling and storage of energy
resources of all forms, whether conventional or nonconventional’; and “(a)ssess the
requirements of, determine priorities for, provide direction to, and disseminate
information resulting from energy research and development programs for the optimal
development of various forms of energy production and utilization technologies”;

WHEREAS, Section 5 of RA 7638, as amended by RA 9136, further authorizes the
DOE to formulate and implement programs, including a system of providing incentives
and penalties, for the judicious and efficient use of energy in all energy consuming
sectors of the economy;

WHEREAS, Section 2 of Presidential Decree (PD) No. 87, s. 1972, or the “Oil
Exploration and Development Act of 1972”, as amended, declares it to be the policy
of the State “to hasten the discovery and production of indigenous petroleum through
the utilization of government and/or private resources, local and foreign, under the
arrangements embodied in this Act which are calculated to yield the maximum benefit
to the Filipino people and the revenues to the Philippine Government for use in
furtherance of national economic development, and to assure just returns to
participating private enterprises, particularly those that will provide the necessary
services, financing, and technology and fully assume all exploration risks”;

WHEREAS, Section 37 of RA 9136 provides that the DOE, in addition to its existing
powers, shail among others, “formulate policies for the planning and implementation
of a comprehensive program for the efficient supply and economical use of energy
consistent with the approved national economic plan and with policies on
environmental protection and conservation and maintenance of ecological balance,
and provide a mechanism for the integration, rationalization, and coordination of the

Energy Center, Rizal Drive cor. 34th Street, Bonifacio Global civ prasuig City, Philippines 1632
Tel. No. (Trunkline) (632) 8479-2
Website: http://www.doe.gov.ph; Email: i infor@doe. gov.ph

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various energy programs of the Government and ensure the reliability, quality, and
security of supply of electric power’;

WHEREAS, RA 9513 or the “Renewable Energy (RE) Act of 2008” declares it the
policy of the State to ‘increase the utilization of RE by institutionalizing the
development of national and local capabilities in the use of RE systems, and promoting
its efficient and cost-effective commercial application by providing fiscal and non-fiscal
incentives’;

WHEREAS, Section 15 of RA 9513 grants the incentives enumerated therein to RE
developers of RE facilities including Hybrid Systems, in proportion to and to the extent
of the RE component, for both power and non-power applications, after securing a
Certificate of Endorsement from the DOE and registration with the Board of
Investments (BO));

WHEREAS, RA 11234 or the “Energy Virtual One Stop Shop (EVOSS) Act” provides
for the streamlining of the permitting process of power generation, transmission and
distribution projects;

WHEREAS, Section 3 of RA 11285 or the “Energy Efficiency and Conservation (EEC)
Act” provides for the establishment of a framework for introducing and institutionalizing
fundamental policies on energy efficiency and conservation, including the promotion
of efficient and judicious utilization of energy, increase in the utilization of energy
efficiency and RE technologies, and the delineation of responsibilities among various
government agencies and private entities;

WHEREAS, Section 3 of RA 11572 or the “Philippine Energy Research and Policy
Institute (PERPI) Act” provides for the establishment of the PERPI for the
enhancement of the couniry’s capability for energy research and policy development;

WHEREAS, Section 2 of RA 11697 or the “Electric Vehicle Industry Development Act
(EVIDA)” declares it the policy of the State to “promote and support innovation in clean,
sustainable, and efficient energy to accelerate social progress and human
development by encouraging public and private use of low emission and other
alternative energy technologies”;

WHEREAS, the Philippine Energy Plan 2022-2040 considers the role of Hydrogen as
another viable alternative and cleaner source of energy for the Philippines, as it has
been globally recognized to provide a diverse range of energy applications, including

distributed power, backup power, portable power, auxiliary power for passenger and
freight vehicles, among others;

WHEREAS, on 25 November 2020, the DOE issued Special Order No. SO2020-11-
0041 which created the Hydrogen and Fusion Energy Committee (HFEC) that was
tasked to conduct a study on the impact of Hydrogen to the country's energy mix as
well as the possibility of Hydrogen as an option for power and transport fuel supply;

WHEREAS, on 20 April 2023, the DOE issued Department Circular No. DC2023-04-
0008, “Prescribing the Policy for Energy Storage System in the Electric Power
Industry”, in recognition of the applications and the benefits of Energy Storage System
(ESS) as an emerging technology in the improvement of the electric power system;

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WHEREAS, on 09 November 2023, the DOE issued Department Circular No.
DC2023-11-0031 or the “Guidelines on the Awarding of Service Contracts for the
Exploration, Development, and Production of Native Hydrogen” which recognizes that
the exploration, development, and production of Native Hydrogen is governed. by PD
87, as amended, and shall be implemented under the rules, regulations, issuances
and procedures issued by the DOE relevant to the conduct of petroleum exploration,
development and production; |
WHEREAS, the potential of utilizing Hydrogen resources, if optimally developed, will
play a major role in improving the country’s energy security by reducing dependence
on imported fossil fuels and in achieving the country’s goal for a low-carbon future;

WHEREAS, there is a need to consolidate and harmonize all existing issuances to
ensure and accelerate investments in safe, effective, and efficient Hydrogen
development, production and utilization; and
WHEREAS, the draft Department Circular was presented to, and comments solicited
from stakeholders on 13 October 2023 and 30 November 2023 in the National Capital
Region and other parts of Luzon, Visayas and Mindanao. |

NOW, THEREFORE, in consideration of all the foregoing premises, the DOE:hereby

issues, adopts and promulgates the following policy framework and roadmap for the

development, production and utilization of Hydrogen in the energy sector: i
1. GENERAL PROVISIONS

Section 1. Title. This Department Circular shall be known as the “Hydrogen ‘Energy
Guidelines”.
i

Section 2. Guiding Principles. As part of the country’s efforts to achieve ia more

sustainable and low-carbon future in the energy sector and the reduction of

greenhouse gas (GHG) emissions, the DOE recognizes the role of Hydrogen in the

energy transition as an innovation capable of meeting future energy demand with

various applications in the power, transportation, commercial, and industrial sectors.
The national policy framework is centered on four cornerstones:
1

2.1 Energy Security. Diversify energy sources and increase utilization of

indigenous energy resources through the production of Hydrogen and its

derivatives thereby reducing dependence on imported oil mitigating the

country’s vulnerability to energy supply disruptions and fluctuations in the
global energy market.

2.2 Environmental! Sustainability. Promote the acceleration of RE, alternative
fuels and emerging technologies and intensify EEC measures that:support
initiatives to mitigate GHG emissions and the country’s commitment in its
Nationally Determined Contribution under the 2015 Paris Agreement.

2.3 Research and Technological Development. Drive innovation in the

industry through collaboration with science and technology institutions in
undertaking research and studies, implement technology demonstration
t

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and pilot projects, encourage technology transfer and adoption, and
strengthen capacity-building programs.

2.4 Access to Financing and Investments. Accelerate the development of
the industry through the formulation of sustainable financing program and
investment roadmap, including the establishment of fiscal and non-fiscal
incentives and institution of government financial support mechanisms.

Section 3. Scope and Coverage. This Department Circular covers all activities
related to the establishment, construction, operation, maintenance, decommissioning,
and disposal of Hydrogen projects or facilities which involve research, development,
production, storage, transmission, distribution, and utilization of Hydrogen Energy
resource: Provided That, all activities in relation to the exploration, development and
production of Native Hydrogen and Native Hydrogen Derivatives shall be governed by
Department Circular No. DC2023-11-0031 and the applicable provisions implementing
PD 87.

Section 4. Definition of Terms. For purposes of this Department Circular, the
definition of terms shall be as follows:

a. “Co-firing” refers to the combustion of two (2) or more kinds of fuels in the
same combustion system;

b. “Decommissioning” refers to the permanent retirement of a Hydrogen
Energy facility or unit from operation upon reaching its maximum economic
life or discontinued operation in the facility;

c. “Disposal” refers to the physical removal of equipment or material used that
are no longer needed including management and handling of waste
generated in the operation of the Hydrogen Energy facility;

d. “Energy Storage System or “ESS” refers to a facility capable of absorbing
energy directly from the Grid or Distribution System, from an RE Plant, or
from a Conventional Plant connected to the Grid or Distribution System,
storing it for a period of time, and injecting stored energy when prompted in
order to ensure a reliable and balanced power system; ESS technologies
shall include, but not be limited to Battery Energy Storage System (BESS),
Compressed Air Energy Storage (CAES), Flywheel Energy Storage (FES),
and Pumped-Storage Hydropower;

e. “Energy Virtual One-Stop Shop or “EVOSS" refers to an online system that
allows the coordinated submission and synchronous processing of all
required data and information, and provides a single decision-making portal
for actions on applications for permits or certifications necessary for, or
related to, an application of a proponent for new power generation,
transmission, or distribution projects;

f. “EUMB?’ refers to the Energy Utilization Management Bureau of the DOE;

g. “Fossil Fuel” refers to the non-RE sources such as coal, coal products,
natural gas, derived gas, crude oil, and petroleum products;

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h. “Fuel Cell” refers to the electrochemical device that directly produces
electricity from the conversion of fuel (e.g., Hydrogen) with an oxidant
without any physical or chemical consumption of the electrodes or
electrolyte;

i. “Green Hydrogen” refers to the Hydrogen produced through electrolysis by
RE resources/facilities or through the reforming of biogas or biochemical
conversion of biomass;

j. “Green Hydrogen Derivatives” refers to the Hydrogen Derivatives produced
using RE; ;

k. “Grid Electricity” refers to the electricity sourced from high voltage backbone
system of interconnected transmission lines, substations and related
facilities;

|. “Hybrid System” refers to any power or energy generation facility which
makes use of Hydrogen Energy together with other types of energy system
(e.g., utilizing both conventional fossil fuels or RE and Hydrogen Energy
technologies) with a minimum of ten (10) megawatts or ten percent (10%)
of the annual energy output provided by the RE component and, Provided
Further That, Hydrogen is sourced from RE in accordance with the
provisions of the RE Act of 2008;

m. “Hydrogen” refers to clean alternative fuel with chemical formula He that can
be used as an energy carrier to store, move, and deliver energy from other
sources; it is also considered as the simplest and most abundant element
and naturally exists in gas form and has a boiling point of -253 °C;

n. “Hydrogen Derivative” refers to compounds or substances that contain
Hydrogen atoms and/or are produced through reactions involving Hydrogen
such as but not limited to ammonia (NHs) and liquid organic Hydrogen
carriers, and may be considered as suitable Hydrogen transport medium or
Hydrogen carrier;

o. “Hydrogen Energy” refers to the generated energy from the use of
Hydrogen and/or Hydrogen Derivatives supplied to all practical uses
needed with environmental, social, and economic benefits;

p. “Hydrogen Energy Industry Activity” refers to activities related to the pre-
development, establishment, construction, operation, maintenance,
Decommissioning, and Disposal of Hydrogen facilities for production,
storage, transmission, distribution, and utilization of hydrogen energy
resource for power or non-power applications;

q. “Hydrogen Energy Industry Committee or “HEIC” refers to a committee
established to spearhead the activities related to the development of the
hydrogen energy industry; |

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r. “Hydrogen Energy Industry Participant” refers to any person or entity,
natural or juridical, engaged or intending to engage in any Hydrogen Energy
Industry Activity, pursuant to this Department Circular;

s. "Hydrogen Energy Project” refers to facility undertaking any Hydrogen
Energy Industry Activity;

t. “Hydrogen Fueling Station or “HFS” refers to a facility with fuel dispenser
equipment for the delivery of Hydrogen as fuel for vehicles that run on
Hydrogen fuel;

u. “Hydrogen Multigeneration Plant” refers to a facility which simultaneously
produces Hydrogen and/or its derivatives with other forms of energy;

v. “Native Hydrogen or Natural Hydrogen’ refers to Hydrogen gas that occurs
naturally in.geological formations, and can be associated with methane and
other hydrocarbon gases and can be considered as mineral gas;

w. “LGU/LGUs” refers to the Local Government Unit or Local Government
Units;

x. “Nuclear Energy” refers to the form of energy released from the nucleus,
the core of atoms which is made up of protons and neutrons;

y. “RE” refers to the energy obtained from natural resources that can be
replenished over an indefinite period of time. This includes, among others,
biomass, geothermal, solar, hydro, ocean, wind, and other emerging RE
technologies; and

z. “RE Trust Fund or “RETF” refers to the trust fund established to enhance
the development and greater utilization of RE.

tl. ROLE OF HYDROGEN IN THE ENERGY SECTOR

Section 5. Exploration, Development, and Production of Native Hydrogen.
Guidelines for the exploration, development, and production of Native Hydrogen shall
be administered by the DOE, through its Energy Resource Development Bureau
(ERDB), in accordance with provisions of PD 87, as well as the rules and regulations
issued implementing the same.

Section 6. Hydrogen Energy Value Chain. The Hydrogen value chain (Annex A)
involves facilities and activities in the fields of production, transportation, distribution
and storage, utilization, import, and export of Hydrogen in the energy sector as
outlined in this Department Circular.

6.1 Production. Hydrogen production shall be classified according to its
energy resource such as, but not limited to, RE, nuclear energy, fossil fuels,
and electricity from the grid, chemical reactions, among others.

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6.2

6.3

6.4

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In recognition of its role in the energy transition, production of hydrogen and
its derivatives from RE (Green Hydrogen and Green Hydrogen Derivatives)
shall be preferred and shall be considered as RE projects.

Production of Hydrogen and its derivatives using nuclear energy may be
recognized as an energy efficiency project, in accordance with the EEC Act,
provided that the project shall be qualified under the Strategic Investment
Priorities Plan (SIPP) of the BOI.

Transportation, Distribution, and Storage. From point of production,
Hydrogen can be transported, distributed, and stored in compressed form
or by conversion to Hydrogen Derivatives, such as ammonia, liquid organic
Hydrogen carriers, solid carriers, among others. Storage systems refer to
specialized storage tanks and underground storage systems, among
others. Transportation and distribution of Hydrogen and its derivatives can
be done through dedicated pipelines, chemical carriers, rail, or maritime
distribution systems, and fueling stations.

Utilization. Prospective uses of Hydrogen in the energy sector shall be
divided into power generation and electricity storage applications and non-
power applications. Power generation and electricity storage shall include
use of electricity produced from Hydrogen Energy supplied to the grid or as
backup and off grid power supply, industrial scale energy storage, Co-firing
with Hydrogen Derivatives in existing fossil fuel power plants, and Hydrogen
and its derivatives multigeneration systems.

For purposes of this Department Circular, a Hydrogen storage facility shall
be considered as an ESS and shall be referred to as a Hydrogen Energy
Storage System (HESS). HESS is a technology that utilizes Hydrogen gas
to store energy for later use in power generation and shall observe the
requirements outlined in Department Circular No. DC2023-04-0008:
Provided Thai, the documentary requirements previously submitted shall
no longer be submitted for this Department Circular: Provided Further That,
the said HESS facility shall notify EUMB in writing of its previous registration
under the RE law, the EPIRA, or under other rules and regulations of the
DOE: Provided Finally That, this excludes facilities that produce Hydrogen
and directly convert it to electricity for power generation in a linear process.

Meanwhile, non-power applications shall include the use of Hydrogen as
an alternative fuel for industrial, commercial, and transportation sectors.

Import and Export. Contributing to the global strategy towards
decarbonization and exploration of energy solutions, importation and
exportation of Hydrogen and its derivatives shall be considered in the value
chain acknowledging its significance in supplementing domestic demand
and utilizing surplus RE.

Section 7. Hydrogen Energy Industry Committee (HEIC). For the implementation
of this Department Circular, the DOE hereby organizes the Hydrogen Energy industry
Committee (HEIC).

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7.1

7.2

Page 8 of 17

Composition. The HEIC shall be composed of DOE Technical Bureaus
and Services led by the Undersecretary and Assistant Secretary. The HEIC
shall be assisted by the Technical Secretariat which is hereby designated
to the EUMB. Likewise, designated members of the HEIC shall be of
Director level who shall then appoint their respective alternates, preferably
Division Chief and/or Supervisor, to ensure appropriate representation and
continuity in the performance of their respective functions.

Chairperson: Undersecretary
Vice Chairperson: Assistant Secretary
Technical Secretariat! _EUMB - Alternative Fuels and Energy
Technology Division (EUMB-AFETD)
Members:
Electric Power Industry Management Bureau (EPIMB)
Energy Policy and Planning Bureau (EPPB)
Energy Resource Development Bureau (ERDB)
Energy Research and Testing Laboratory Services (ERTLS)
Energy Utilization Management Bureau (EUMB)
Financial Services (FS)
Oil Industry Management Bureau (OIMB)
Renewable Energy Management Bureau (REMB)
Legal Services (LS)

Mandate and Functions. The HEIC shail oversee the implementation of
this Department Circular and shall perform the following functions:

7.2.1 Develop, implement, supervise, monitor, and update the roadmap
for Hydrogen Energy industry in the country;

7.2.2 Study the needed infrastructure for Hydrogen Energy industry
adoption in the Philippines;

7.2.3 Establish Hydrogen technical working group who will develop,
review, adopt, and update applicable safety codes, environment,

facility, and product quality standards for Hydrogen Energy Industry
Activity;

7.2.4 Represent DOE in Memoranda of Understanding (MOUs),
Memoranda of Agreement (MOAs), legislative initiatives, and other
engagements related to the development of Hydrogen Energy
industry;

7.2.5 Coordinate and seek assistance from relevant government
agencies, international bodies or entities, and other experts on the
subject matter, if necessary;

7.2.6 Collaborate with local and international organizations for the
conduct of research and development (R&D) related to Hydrogen
Energy Industry Activities;

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7.3

7.4

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7.2.7. Review and consolidate all studies and proposals related to
Hydrogen Energy industry development;

7.2.8 Provide information and technical assistance to stakeholders
involved in Hydrogen Energy industry development;

7.2.9 Prepare the budgetary requirements needed to support the plans
and programs for the implementation of this Department Circular;

7.2.10 Select Team Members and Designated Team Leader for purposes
of conducting an investigation relative to violations of prohibited
acts under Section 23 of this Department Circular and recommend
action for HEIC.

7.2.11 Impose fines and penalties upon persons or entities found violating
Section 23 of this Department Circular; and

7.2.12 Exercise such other functions as may be necessary and incidental
to attain the mandates under this Department Circular.

Capacity Building. The DOE, through HEIC, shall develop a capacity
building and research plan for Hydrogen development in the energy sector
in collaboration with international counterparts, relevant Government
Agencies, universities and colleges, research institutions, and private
experts for the effective implementation of this Department Circular.

Members of the HEIC shall undergo a series of capacity building activities
that will equip and train them particularly in the analysis and evaluation of
Hydrogen Energy industry data.

Conduct of HEIC Meetings. The HEIC shall meet every quarter or as often
as may be necessary. The mode of meeting shall primarily be conducted
physically at the DOE office but may also be conducted virtually.

In order to conduct official business for every meeting, a quorum must be
established which shall be defined as at least half of the Members of the
HEIC. The quorum shall be determined at the beginning of each meeting
or session. In the absence of a quorum, no official actions or decisions shall
take place.

Section 8. Hydrogen Technical Working Groups (TWGs). The HEIC, in
collaboration with other relevant government agencies and concerned industry
stakeholders, shall lead and establish respective TWG for the development, adoption,
and updating of the following:

8.1

8.2

Facility Standards

Safety Codes

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'

8.3 Product Quality

8.4 Environmental Standards

8.5 Waste Disposal Management

8.6 Hydrogen Energy Certification Mechanisms

The HEIC may establish other TWGs as may be deemed necessary. Furthermore, the
DOE may issue further guidelines on the approved and issued standards by the TWG
for compliance by Hydrogen Energy Industry Participants.

The TWG shall be composed of technical! experts and representatives from relevant
government agencies, industry, professional associations, research institutions, and
academe. A separate guideline shall be issued on the composition and responsibilities
of the TWG.

Section 9. Strategic Roadmap for Hydrogen. The utilization of Hydrogen Energy is
a crucial measure of the Philippine government toward the long-term path of
decarbonization. The DOE hereby adopts the activities for the development of
Hydrogen and its derivatives as an alternative fuel, outlined in Annex C, which
primarily focuses on pursuing policy and research development, establishing a
national policy framework, institutionalizing development partnerships, and developing
support infrastructure. Further, to provide direction for the industry, the DOE, through
the HEIC, shall develop a comprehensive roadmap defining the overall vision and
strategy, industry's milestone targets, and its needed support systems and resources.

Section 10. Research and Development (R&D). To monitor the innovation and
development of the Hydrogen Energy industry, any person or entity engaged in or
desiring to engage in the research, studies, experiments or other similar
projects/activities involving Hydrogen Energy shall notify the DOE through the EUMB
Director of such engagement, including therewith a copy of the Profile of R&D Activity
on Hydrogen Energy (Annex D hereof). The HEIC shall cooperate with the PERPI in
the consolidation of energy research and policy development activities on Hydrogen
Energy. Likewise, the person or entity conducting R&D activities on Hydrogen Energy
shall provide the DOE with a copy of the results of the aforementioned R&D activities
for consolidation, in accordance with Section 25 of this Department Circular.

Further, if it shall be determined that the proposed research activity, study, or
experiment addresses the challenges and opportunities in the energy sector, and
eventually lead to the promotion and transfer of technologies and services that seeks
solution to energy security, efficiency, and conservation, the proponent may be
awarded grants or financial assistance in accordance with applicable DOE guidelines
and subject to the HEIC'’s evaluation and approval. Financial grants for Green
Hydrogen and Green Hydrogen Derivatives shall be sourced from the RETF;
otherwise, it shall be charged against DOE’s appropriations. Thereafter, the amount
necessary for the continued support for qualified research and development activities
shall be included in the annual General Appropriations Act.

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ll. HYDROGEN ENERGY INDUSTRY ACTIVITY

Section 11. Notice Prior to Engagement in Hydrogen Energy Industry Activity.
Any person or entity, natural or juridical, who intends to engage in any Hydrogen
Energy industry Activity shall file a notice with the EUMB prior to any such activity. A
Notice Prior to Engagement shall be filed for every Hydrogen Energy project that is to
be conducted.

All notices shall be accomplished under oath in writing and shall contain the following
information:

11.1 Letter of Intent addressed to EUMB Director on the Hydrogen Energy
Project (Annex E);

11.2 Undertaking to Abide by the Terms and Conditions as Hydrogen Energy
Industry Participant (Annex F);

11.3 Profile of Hydrogen Energy Project (Annex G); and

11.4 Copies of Certificate of Business Registration (DTI/SEC), Financial
Statement for the last two (2) years, Partnership Agreements/Joint-Venture
Agreements, BIR Registration, and/or LGU permits/licenses, as may be
applicable.

The DOE, through the EUMB, shall have the authority to verify, validate, and inspect
all information/documents pertaining to the technical, financial, and legal capacity of
the Hydrogen Energy Industry Participant. Also, all information and other supporting
documents may be requested to further verify the submission of the Hydrogen Energy
Industry Participant.

Recognizing that the production of Green Hydrogen and Green Hydrogen Derivatives
is an RE project, such project shall also comply with the provisions of the RE Act of
2008 and Department Circular No. DC2019-10-0013 and the amendments thereto.

Section 12. Procedure for Issuance of Acknowledgement Letter and Certificate
of BOI Endorsement. Prior to commencement of any Hydrogen Energy project, an
acknowledgement letter must be secured. The procedure for the issuance of
acknowledgement letter and Certificate of BO] Endorsement shall be as follows:

12.1 Procedure for Issuance of Acknowledgement Letter:

Upon submission of notice of engagement in Hydrogen Energy Industry
Activity by the Hydrogen Energy Industry Participant, the EUMB shall,
within three (3) working days, evaluate the submitted documents based,
among others, on the following:

12.1.1 Completeness of the submitted required documents (refer to Annex
H for the checklist of requirements); and

12.1.2 Legitimacy of the operation of the Hydrogen Energy Industry
Participant.

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An acknowledgement letter shall be issued to Hydrogen Energy Industry
Participants within seven (7) days upon receipt of all required documents.
Alternatively, incomplete documents shall be returned to the Hydrogen
Energy Industry Participant with corresponding assessment from the DOE.

Likewise, all submissions shall be endorsed to and be acted upon by the
appropriate DOE Bureau, as specified in Annex |. EUMB shall notify the
Hydrogen Energy Industry Participant of the endorsement. Upon
endorsement, the Hydrogen Energy project shall be subjected to applicable
DOE guidelines and their corresponding processing fees.

12.2 Procedure for Issuance of Certificate of BO! Endorsement:

For Hydrogen Energy projects soliciting incentives under RA 11534, the
Hydrogen Energy Industry Participant shall signify their intention to apply
for endorsement through an “Application Letter for BOI Endorsement”,
herewith referred to as Annex J. EUMB shall then issue a non-refundable
processing fee to the Hydrogen Energy Industry Participant in the amount
of Twenty Thousand Pesos (PHP20,000.00). Upon receipt of the proof of
payment, EUMB shall evaluate the financial, legal, and technical capacity
of the project. The issuance of the Certificate of Endorsement to BOI shall
be done within twenty (20) days upon receipt of complete documents from
the Hydrogen Energy Industry Participant.

Within a reasonable timeframe upon approval of this Department Circular, the
processing of submissions shall be fully integrated in the EVOSS System pursuant to
RA 11234 or the EVOSS Act and its IRR. A Separate guideline shall be issued outlining
the processes and requirements for compliance of Hydrogen Energy Industry
Participants. During the period of integration, the processing of submissions shall be
acted upon by the EUMB according to the procedures specified above. Upon
integration, all Hydrogen Energy Industry Participants shail lodge their notice of
engagement, requests, and payment of applicable fees pertaining to Hydrogen Energy
development in the EVOSS System.

Section 13. Requirements for Existing Hydrogen Energy Project. Any person or
entity already engaged in any Hydrogen Energy Industry Activity, upon the effectivity
of this Department Circular, shall be given one hundred eighty (180) calendar days to
comply with the requirement stated in Section 11 of this Department Circular.

Section 14. Reportorial Requirement. A report (Annex K) on the status of the
development, operation, and maintenance of the Hydrogen Energy project shall be

submitted by any Hydrogen Energy Industry Participant duly acknowledged by EUMB,
as follows:

14.1 For Hydrogen Energy projects on predevelopment, development, and
construction stages, a semi-annual report on the project status every 30%
day of January and July;

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14.2 For Hydrogen Energy projects in commercial operation, a monthly report
every 30 day of next month and a semi-annual report every 30" day of
January and July.

Section 15. Safe Operation in the Hydrogen Energy Industry Activity. All
Hydrogen Energy Industry Participants shall comply with facility standards, safety
codes, and product quality requirements developed/adopted by the DOE.

Moreover, all Hydrogen Energy Industry Participants including those utilizing
nonrenewable energy sources shall comply with the requirements listed in Department
Circular No. DC2012-11-0009 or the RE Safety, Health, and Environment Rules and
Regulations (RESHERR) until a separate regulation on safety, health, and
environment on Hydrogen Energy is issued by the DOE.

Section 16. Decommissioning of Facility and Disposal of Equipment. A Hydrogen
Energy Industry Participant, which intends to decommission a Hydrogen Energy
facility and dispose of its equipment, machinery, and materials, must notify the DOE
prior to the conduct of such activity. Further, the DOE, in cooperation with Department
of Environment and Natural Resources — Environmental Management Bureau (DENR-
EMB) and other relevant government agencies, shall issue a separate guideline on
the proper management of Decommissioning and Disposal activities related to the
Hydrogen Energy industry.

Section 17. Measurement of Hydrogen Energy. For uniformity in the industry and
for the purpose of this Department Circular, energy produced from Hydrogen shall be
specified in the unit of kilojoule per kilogram of Hydrogen (kJ/kgHz).

Section 18. Responsibilities of the Hydrogen Energy Industry Participant. All
Hydrogen Energy industry Participants shall be responsible for the following:

18.1 Comply with the rules and requirements set forth in this Department Circular
and permits and licenses of other government agencies and LGUs;

18.2 Comply with all relevant health, safety, and environmental laws, rules, and
regulations in the Philippines;

18.3 Cooperate fully with the DOE during the conduct of enforcement,
monitoring, and verification activities; and

18.4 Designate responsible personnel who shall represent the company/entity
for coordination on matters related to their Hydrogen Energy Industry
Activity.

Section 19. Enforcement, Monitoring, and Verification. The DOE shall conduct
enforcement, monitoring, and verification on the compliance of Hydrogen Energy

Industry Participants with the rules and requirements set forth in this Department
Circular.

=== dc2024-01-0001-pages-14.ppm ===
DC on Providing a National Policy and General Framework, Roadmap, and Guidelines for Hydrogen in the Energy

Sector

Page 14 of 17

IV. INCENTIVES IN SUPPORT OF HYDROGEN IN THE ENERGY SECTOR

Section 20. Incentives. Any qualified Hydrogen Energy project may avail of the
following fiscal and nonfiscal incentives:

20.1 Hydrogen Energy projects with the primary purpose of producing,
importing, and exporting Green Hydrogen and Green Hydrogen Derivatives
for power generation and other applications may avail of the following
incentives under RE Act of 2008 and its IRR:

20.1.1

20.1.2

20.1.3
20.1.4
20.1.5
20.1.6
20.1.7
20.1.8
20.1.9

Income Tax Holiday (ITH)

Exemption from Duties on RE Machinery, Equipment, and
Materials

Special Realty Tax Rates on Equipment and Machinery
Net Operating Loss Carry-Over (NOLCO)

Corporate Tax Rate

Accelerated Depreciation

Zero Percent Value Added Tax (VAT) Rate

Tax Exemption.of Carbon Credits

Tax Credit on Domestic Capital Equipment and Services Related
to the Installation of Equipment and Machinery

20.2 Activities related to the application of Hydrogen Energy in the transport
sector using Fuel Cells may be entitled to the incentives under the EVIDA
and its IRR.

20.2.1

20.2.2

20.2.3

Manufacture and assembly of HFS, parts, and components and
establishment and operation of HFS and related support
infrastructures shall undergo an evaluation process and may be
entitled to the incentives provided by the CREATE Act.

The importation of completely built HFS shall be exempted from the
payment of duties for eight (8) years from the effectivity of EVIDA.

The importation of capital equipment and components used in the
manufacture, assembly, construction, or installation of HFS shall
undergo an evaluation process and may be entitled to the
incentives provided by CREATE Act.

20.3 Projects that involve Hydrogen and its derivatives production from nuclear
energy shall be considered as an energy efficiency project and shall
undergo an evaluation process for the availment of incentives under the
EEC Act.
=== dc2024-01-0001-pages-15.ppm ===
DC on Providing a National Policy and General Framework, Roadmap, and Guidelines for Hydrogen in the Energy
Sector
Page 15 of 17

20.3.1 ITH;

20.3.2 Customs Duty Exemption on Importation of Capital Equipment,
Raw Materials, Spare Parts, or Accessories;

20.3.3 VAT Zero-Rating and Exemption; and
20.3.4 Such other incentives under the CREATE Act.

20.4 Enterprises engaged in R&D, establishment of support infrastructure,
production/manufacture of machinery, equipment, materials, and
components using Hydrogen and its derivatives, excluding Green
Hydrogen, and Hydrogen Energy projects that are under the SIPP may
benefit from the following incentives under the CREATE Act:

20.4.1 ITH for four (4) to seven (7) years;

20.4.2 Special Corporate Income Tax (SCIT) equivalent to a tax rate of
five percent (5%) based on the gross income earned (GIE), in lieu
of all national and local taxes — for export enterprise;

20.4.3 Enhanced Deductions;

20.4.4 Customs duty exemptions on imports of capital equipment, raw
materials, spare parts, and accessories; and

20.4.5 VAT zero rating and exemption.

The foregoing incentives may be availed provided that the applicant
complies with provisions of Sections 294, 295, 296, 300, 301 and 304 of
the CREATE Act.

Section 21. Conditions for Availment of the Incentives. The Hydrogen Energy
Industry Participant must select one (1) incentive regime to the exclusion of others
whenever the project qualifies for fiscal and non-fiscal incentives in two or more of the
incentives laws as enumerated in Section 20 of this Department Circular. Uniess
otherwise provided by law, registration/accreditation of a Hydrogen Energy project to
avail of incentives under one incentive regime shall disqualify the same project from
availing of incentives under all other incentive regimes.

V. FINAL PROVISIONS

Section 22. Administrative Procedure. The DOE shall conduct investigations upon
its own initiative or upon receiving a complaint in writing and under oath of any
allegation of violation under Section 23 of this Department Circular in accordance with
Department Circular No. 2002-07-004 otherwise known as the "Rules of Practice and
Procedures before the DOE” or any further amendments.

=== dc2024-01-0001-pages-16.ppm ===
DC on Providing a National Policy and General Framework, Roadmap, and Guidelines for Hydrogen in the Energy
Sector Page 16 of 17
After due investigation and finding that the complaint against any person or entity to
be true and valid, the HEIC shall impose the penalties specified under Section 24 of
this Department Circular.

Section 23. Prohibited Acts. Any person or entity, natural and juridical, shall be
subject to the imposition of penalties which may include the revocation of the
Certificate of BO] Endorsement issued under this Department Circular for violation of
the following:

23.1 Engagement of any Hydrogen Energy Industry Activity without prior notice
to the DOE;

23.2 Noncompliance of existing Hydrogen Energy project with Section 13 of this
Department Circular;

23.3 Failure to provide accurate information or provision of false or misleading
information as required;

23.4Violations of any of the responsibilities stated in Section 18 of this
Department Circular;

23.5 Refusal to submit to on-site inspections and monitoring; and
23.6 Non-submission of reportorial requirements.

Section 24. Penalties. Upon determination that a reasonable ground exists that a
violation of any of the prohibited acts under Section 23 of this Department Circular has
been committed, when warranted, a fine ranging from a minimum of One Hundred
Thousand Pesos (PHP100,000.00) to a maximum of Five Hundred Thousand Pesos
(PHP500,000.00) specified in Annex L of this Department Circular, shall be imposed
upon the Hydrogen Energy project and may include revocation of endorsement issued
if applicable. When warranted, the revocation of endorsement shall be communicated
to the BO! and to the Hydrogen Energy Industry Participant.

The imposition of the fines is without prejudice to the applicable penalties provided
under existing laws, rules, and regulations prescribed by other concerned agencies.

Section 25. Confidential Information. The DOE shall not use confidential information
or commercially sensitive information for purposes other than those provided herein
and shall comply with the provisions of the Data Privacy Act of 2012 and protect and
limit the disclosure of confidential or commercially sensitive information unless allowed
by the concerned party or when required by law, rules, and regulations.

Section 26. Information, Education and Communication Activities. The DOE shall
develop and undertake a national awareness and advocacy program covering
Hydrogen Energy programs and initiatives and pursue partnerships with relevant
stakeholders to promote the appreciation of this Department Circular.

Section 27. Transitory Clause. All Hydrogen Energy Industry Activities in operation
prior to the effectivity of this Department Circular shall comply with the additional
requirements, when applicable, under this Department Circular.
=== dc2024-01-0001-pages-17.ppm ===
DC on Providing a National Policy and General Framework, Roadmap, and Guidelines for Hydrogen in the Energy
Sector

Page 17 of 17
Section 28. Review Clause. In light of the dynamic nature of the industry, the DOE
shall review, update, and issue the rules/guidelines relative to hydrogen in the energy
sector, as necessary.

Section 29. Repealing Clause. The provisions of other circulars, orders, issuances,
rules, and regulations, which are inconsistent with the provisions of this DC, are hereby
repealed, amended, modified, or superseded accordingly.

Section 28. Separability Clause. If, for any reason, any section or provision of this
DC is declared unconstitutional or invalid, such parts not affected shall remain in full
force and effect.

Section 30. Effectivity. This DC shall take effect fifteen (15) days following its
publication in at least two (2) national newspapers of general circulation. A copy of this
DC shall be filed with the University of the Philippines Law Center - Office of the
National Administrative Register.

Issued this JAN 1 2 2024 at the DOE, Energy Center, Rizal Drive cor. 34th
Street, Bonifacio Global City Taguig City, Metro Manila.

RAPHABL P.M. LOTILLA
ecretary

=== dc2024-01-0001-pages-18.ppm ===
Annex A: Hydrogen Energy Value Chain

fe eee Se caer L cad "Me BORE, Ati ty 4 fase a to Whee “Sea pF asthe,
Re OE + . Se, Boa te Fag ee 5G a 38,

ap

SUPPLY SYSTEM UTILIZATION

nit
*
z
a]
* v
’
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#.
oe
t
Z
.
a,
®
4

: Tanks,
* Underground
Storage System

Pipelines

c ay . - =

Eg 2 “x ee | : G oY
Energy Resource * Hydrogen and Fueling Stations, Transportation, | Hydrogen and
(Renewable Energy, Hydrogen derivatives Hauler Trucks, Power Generation, Hydrogen derivatives
Nuclear Energy, Rail Transit Heating Application
Fossil Fuels, Maritime
Grid Electricity)

DC on Providing a National Policy and General Framework, Roadmap, and Annex A: Hydrogen Energy Value Chain

Guidelines for Hydrogen in the Energy Sector
=== dc2024-01-0001-pages-19.ppm ===
Annex B:
Summary of Hydrogen Colors

For the purposes of this Department Circular, hydrogen colors corresponding to its feedstock
or electricity source and technology pathway shall be as follows:

Hydrogen Colors Technology

White Hydrogen Native Hydrogen (naturally occurring)

a Renewable energy (e.g.,
Electrolysis wind, solar, hydropower,
geothermal
Biochemical Conversion
Pink Hydrogen Electrolysis | Nuclear |
H Electrolysis Mixed-origin grid energy

Natural gas reforming +
Blue Hydrogen CCUS? gasification + CCUS Natural gas, coal
' Turquoise Hydrogen Pyrolysis
a SE 7; Natural gas
As: mae! §=§=©6 Natural gas reforming

Brown Hydrogen Brown coal (lignite)
Gasification -

Black Hydrogen Black coal

* CCUS — Carbon Capture, Utilization, and Storage

Feedstock/Electricity
Source

DC on Providing a National Policy and General Framework, Annex B: Summary of Hydrogen Colors
Page 1 of 7

Roadmap, and Guidelines for Hydrogen in the Energy Sector

=== dc2024-01-0001-pages-20.ppm ===
-.

me

Pursue Policy and Research

Development

Establish a Steering Committee for =
Hydrogen, Hydrogen derivatives, and
other Emerging Fuels and
Technologies

Conduct Cost-Benefit-Analysis (CBA)
and Feasibility Studies on hydrogen =
and hydrogen derivatives

Pursue. further research study on the
viability of hydrogen and hydrogen
derivatives in collaboration with the
Department of Science and
Technology

Establish a pilot project for hydrogen
and hydrogen derivatives specific for
power generation .

i ea TTEFT TTT]

En

DC on Providing a National Policy and General Framework, Roadmap,
Guidelines for Hydrogen in the Energy Sector

Policy Framework

Establish the necessary policy, legal,
and regulatory framework for the
development of hydrogen and
hydrogen derivatives technology and
fuel

Create standards for qualify and
performance, public safety and
operations, and infrastructure and
facility for hydrogen and hydrogen
derivatives

Develop and implement safety
practices and procedures in
operating and handling hydrogen

and hydrogen derivatives

Develop a Hydrogen and Hydrogen

Derivatives Masterplan
’ re

‘scientific and technological researches

Institutionalize Develop Support
Development Partnership infrastructures

Engage in development partnerships ,
with counties that utilize Advance Encourage private.sector investment

Research and Development (R&D) ie, Facilitate the establishment of

necessary Infrastructure facilities for
Hydrogen and Hydrogen Derivatives:

and demonstration or pilot projects for
Hydrogen and Hydrogen Derivatives as
an energy source

o Production./ Importation
Conduct capacity building activities and o Storage

technology transfers with countries © Transportation/ Distribution
uliiizing Hydrogen and Hydrogen o Filling / Fueling stations
Derivatives

Establish Public-Private Partnerships
(PPP) and Government-to-Govemment

(G2G) arrangements to further leverage rt
the potential of Hydrogen and ,.py> <
Hydrogen Derivatives Sm. i x

v7 OR
wo F

‘

ava Oa
,

@

A ake’

ves Macias tt oo 28 NRPS ALOR,

and Annex C: Activities for the Development of Hydrogen and its Derivatives

Page 7 of 1

=== dc2024-01-0001-pages-21.ppm ===
Annex D: Profile of Research and Development (R&D) Activity on Hydrogen Energy

Organization Logo/Letterhead
Date

Mr./Ms.

Director

Energy Utilization Management Bureau
Department of Energy

Energy Center, Rizal Drive, Bonifacio Global City
Taguig City

Dear Mr./Ms.

We would like to formally notify your office of our research and development (R&D) activity on hydrogen
energy. Details of the activity are as follows:

. Title of R&D Activity:
. Proponent:
. Address:

. Contact Number:
. E-mail Address:

eS ee ee

OABON =

We are also attaching the Profile of Research and Development on Hydrogen Energy and other
pertinent supporting documents for consideration.

For any queries regarding this notification, please do not hesitate to contact Mr./Ms.
at telephone no. 1234-5678 or email address at sample@sample.com.

Thank you.
Sincerely yours,

Signature over Printed Name
Position

DC on Providing a National Policy and General Annex D: Profile of R&D Activity on Hydrogen Energy
Framework, Roadmap, and Guidelines for

Hydrogen in the Energy Sector Page 1 of 2

=== dc2024-01-0001-pages-22.ppm ===
Organization Logo/Letterhead
Profile of Research and Development (R&D) Activity on Hydrogen Energy

I. R&D Title:

Il. Hydrogen Energy Industry Participant:

lll. Brief Description/Abstract:

(Project Schedule)

V. Summary of Results and Discussion, as applicable:

DC on Providing a National Policy and General Annex D: Profile of R&D Activity on Hydro 5
Framework, Roadmap, and Guidelines for ty on nydrogen Energy

Hydrogen in the Energy Sector Page 2 of 2

=== dc2024-01-0001-pages-23.ppm ===
Annex E: Letter of Intent on Hydrogen Energy Project.

Company Logo/Letterhead

Date

Mr./Ms.

Director

Energy Utilization Management Bureau
Department of Energy

Energy Center, Rizal Drive, Bonifacio Global City
Taguig City

Dear Mir./Ms.

We would like to formally notify your office of our intention to engage in a Hydrogen Energy Industry
Activity. Details of the activity are as follows:

. Name of Hydrogen Energy Industry Participant:
. Office Address:
. Office Contact Number:
. Office E-mail Address:
. Authorized Representative for the Hydrogen Energy Industry Activity:
5a. Name:
5b. Contact Number:
5c. E-mail Address:
. Hydrogen Energy Industry Activity:
. Hydrogen Energy Industry Project:
. Hydrogen Energy Industry Project Location:
. Capacity of Hydrogen Energy Industry Project (if applicable):
0.Overail Cost of Hydrogen Energy Industry Project/Capital Investment (in Php):

eo - Or

OaAbhwh 4

-_- OON OD

We are also attaching the Undertaking to Abide by the Terms and Conditions as Hydrogen Energy

Industry Participant (Annex F), Profile of Hydrogen Energy Project (Annex G) and other pertinent
supporting documents for consideration.

For any queries regarding this notification, please do not hesitate to contact Mr./Ms.
at our telephone no. 1234-5678 or email address at sample@sample.com.

Thank you.

Sincerely yours,

Signature over Printed Name
Position

Subscribed and sworn to before me this ___ day of , 20__ affiant exhibiting to me his/her
government-issued identification card no issued at on

Notary Public:

Doc No.

Page No.
Book No.
Series of

Note: If the applicant is a foreign entity, all documents submitted including this application shall be authenticated
by the Philippine Embassy that covers the applicant.

DC on Providing a National Policy and General Framework, Annex E: Letter of intent on
Roadmap, and Guidelines for Hydrogen in the Energy Sector Hydrogen Energy Project
Page 7 of 1
=== dc2024-01-0001-pages-24.ppm ===
Annex F:

Undertaking to Abide by the Terms and Conditions as
Hydrogen Energy Industry Participant

I, (Surname) __, (First Name, Ml) of (Name of Company/Organization) with

principal address at is duly
authorized by this company/organization and its Board of Directors/Partners through Board
Resolution No. dated , aS attached herein, to hereby abide by the following
terms and conditions as Hydrogen Energy Industry Participant.

1. Pursuant to Section 11.2 of Department Circular No. 2023-XX-XXXX, otherwise known :
as the “Hydrogen Energy Guidelines’, we hereby commit to observe and abide by the
provisions of the said Circular and its implementing rules and regulations and future
amendments and shall comply with any and all other directives and orders which the
DOE may issue in pursuance with its authority under the law.

2. We shall ensure that our Hydrogen Energy Project conform at all times to the
applicable quality, safety, and other relevant standards issued by the DOE and other
National Government Agencies (NGAs).

3. We shall give access to the DOE’s duly authorized representative(s) during working
hours to our company/organization premises where our operation is being carried out,
for the purpose of evaluating materials, operations, processes, quality system,
facilities, records and others.

4. We shall assure that no DOE personnel, his/her spouse, or his/her relative by
consanguinity or affinity within the fourth civil degree shall have ownership of or
financial interest in the company/organization.

5. We shall allow DOE assessor(s)/ representative(s) and others concerned to witness
the hydrogen energy industry activities of our company/organization.

6. We shall pay the applicable fees and charges as billed or stipulated by DOE (as
applicable).

7. That any infraction of these terms and conditions including falsification or misleading
information provided shall constitute sufficient grounds for the imposition of penalties
against our company/organization.

Witnesseth my hand this day of 20___ at

Signature over Printed Name

Position
Subscribed and sworn to before me this ____ day of ,20____affiant exhibiting
to me his/her government-issued identification card number issued at
on
Notary Public:

Doc No.

Page No.

Book No.

Series of

DC on Providing a National Policy and General Annex F: Undertaking to Abide by the Terms and
Framework, Roadmap, and Guidelines for Hydrogen Conditions as Hydrogen Energy Industry Participant
in the Energy Sector Page 1 of 7

=== dc2024-01-0001-pages-25.ppm ===
Annex G: Profile of Hydrogen Energy Project

Company Logo/Letterhead

I. Name of Hydrogen Energy Project:
H. Hydrogen Energy Industry Participant:

Ill. Hydrogen Energy Industry Activity, please check as applicable:
___ Pre-development
__ Establishment/Construction
__ Production
__ Storage
__ Transmission
___ Distribution
__ Importation
__ Exportation
__ Utilization
__ Others:

IV. Brief Description:
eee

— wm xr seeeeFeSsSSeSSSSSseFs

V. Location Map:

(Coordinates: xxx.xxxxx, yyy.yyyyy)

VI. Layout with Dimensions:

DC on Providing a National Policy and General Framework,

Wall é Annex G: Project Profile of Hydrogen
Roadmap, and Guidelines for Hydrogen in the Energy Sector

Energy Industry Activity
Page 1 of 2

=== dc2024-01-0001-pages-26.ppm ===
Vil. Technical Information and Key Output:

—_—_ oO eee
_ eee
TO ee eeeSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSMMee

Vill. Project Plan:

eee
_— eee
TT eS
———- qq ee

IX. Projected Energy Production (in kilojoule per kilogram of Hydrogen, MW or MWh for
power generation, etc.):
See
eee
$e

X. Project Timeline (Please attach Gantt Chart, if applicable):

(Project Schedule)

XI. Investment Cost (in Pesos):
eee
XII. Return on investment (ROI):
SSeS
Xill. Annual Displaced Fossil Fuels Used in Mtoe:
eee
XIV. Annual CO: Emission Avoided in MtCO,e:
eee
XV. Source of Hydrogen/ Hydrogen Derivatives (specify if from RE, fossil fuel, etc.):
eee
XVI. Job Generated:
eee
XVII. List of Facilities:

eee
Ss SSFSFSSFSSSeSSSSseeeeeSeSSSSSSSSSSSSSeS
eee

DC on Providing a National Policy and General Framework,

Annex G: Project Profile of Hydrogen
Roadmap, and Guidelines for Hydrogen in the Energy Sector

Energy industry Activity
Page 2 of 2

=== dc2024-01-0001-pages-27.ppm ===
Annex H: Checklist of Requirements

Research and Development (R&D) Activities:

Classification: . #6
‘ype of Transaction::
Who May. Avail 3 |

a

Any person or entity engaged in or desiring to engage in the
, | research, studies, experiments or other similar

_ “fatto “z| projects/activities involving hydrogen energ
“Checklist:of:Req Sit TA va : ~ |

1. Letter of Notification and Profile of R&D Activity (Annex D) Client

voy

oS
ee ‘

ry Ds a : °
yale! RST a
Oy SER awe a ig «s :

Pre-development Activities:

Classification:? “=. '; ¥ 3

Complex Transaction
- | Government-2-Business

"_.| Hydrogen Energy Industry Participants
Sis. ee ee oe “| Where to Secure: ’’.

1. Letter of Intent on Hydrogen Energy Project (Annex E) (Client |
2. Undertaking to Abide by the Terms and Conditions as Client
Hydrogen Energy Industry Participant (Annex F)

3. Profile of Hydrogen Energy Project (Annex G)

4. Legal Documentation, as applicable

a. Relevant documentary issuances from LGU;

b. Certified true copy of the Security and Exchange
Commission (SEC) Certification of Registration,
Articles of Incorporation and By-Laws;

c. Certified true copy of the Latest General! Information
Sheet (GIS) stamped-received by the SEC;

d. Original Copy of the Certificate of Authority from the
Board of Directors of the proponent authorizing
designated representative/s to apply and sign any
documents; and

e. Any interested party organized in a foreign country ©

shall submit legal and financial documents, or its
equivalent, issued by the appropriate governing

Client

Establishment/Construction, and Commercial Operation Activities:

Highly Technical Transaction
Government-2-Business

Participants

-Checklist.of:Requirements2).* 22 Ses * . oe * | Where to Secures +?
Client
2. Undertaking to Abide by the Terms and Conditions as Client
Hydrogen Energy Industry Participant (Annex F)

DC on Providing a National Policy and General Framework, Annex H: Checklist of Requirements
Roadmap, and Guidelines for Hydrogen in the Energy Sector

Page 7 of 3

=== dc2024-01-0001-pages-28.ppm ===
3. Profile of Hydrogen Energy Project (Annex G)

4. Legal Documentation, as applicable
a. Relevant documentary issuances from LGU; .
b. Certified true copy of the Security and Exchange

Commission (SEC) Certification of Registration,
Articles of Incorporation and By-Laws;

c. Certified true copy of the Latest General Information
Sheet (GIS) stamped-received by the SEC;

d. Original Copy of the Certificate of Authority from the
Board of Directors of the proponent authorizing
designated representative/s to apply and sign any
documents; and

e. Any interested party organized in a foreign country
shall submit legal and financial documents, or its
equivalent, issued by the appropriate governing

5. Financial Documentation, as applicable
a. For corporations existing for more than two (2) years
at the time of filing of application:

i. Copy of Annual Report or Audited Financial
Statements (FS) for the last two (2) years from -
filing date and copy of the latest unaudited FS
signed by responsible official if the Audited FS is
more than six (6) months old at the time of filing;

ii. Copy of Bank Certification to substantiate cash

balance as of the latest unaudited FS;
Copy of Projected Cash Flow Statement for two
(2) years, showing the sources and uses of funds
for the proposed Hydrogen Energy industry
Activity. If Credit Line is identified as one of the
sources of funds, there must be a clear
indication, showing that a certain amount to be
drawn is earmarked for the Hydrogen Energy
Project;
iv. Copy of latest income tax return filed with the
Bureau of Internal Revenue; and
v. List of existing and/or pending applications for
projects with the DOE, including the status and -
cost of work commitment per project per year.
b. For newly organized corporation existing for less
than two (2) years at the time of filing of application:
i. Copy of Audited FS or unaudited FS duly signed
by the responsible official;
ii. Copy of Bank Certification to substantiate cash
balance as of the latest unaudited FS; and
iti. Copy of Projected Cash Flow Statement for two
(2) years, showing the sources and uses of funds
for the proposed Hydrogen Energy Industry
Activity. lf Credit Line is identified as one of the
sources of funds, there must be a clear
indication, showing that a certain amount to be
drawn is earmarked for the Hydrogen Energy
Project.

Client

Client

DC on Providing a National Policy and General Framework, Annex H: Checklist of Requirements
Page 2 of 3

Roadmap, and Guidelines for Hydrogen in the Energy Sector

=== dc2024-01-0001-pages-29.ppm ===
For Parent Company that guarantees for Client
corporation with insufficient working capital:
i. Copy of Parent Company's financial documents
per 1.a and 1.b; and
ii Copy of duly notarized letter of Undertaking /
Support from the Parent Company to fund the
Work Program.
d. Applicants’ Financial Capability: Client
i. Minimum working capital (Liquid Asset less
Current Liabilities) is 100% of the financial
commitment for the first contract year of the
proposed work program and budget;
ii, Liquid Assets shall consist only of cash, trade
accounts receivables and short-term
investments/placements. Credit line is not
considered as a Liquid Asset; and
ii. The applicant's available working capital for each
project should be net of fund requirements from
existing and/or pending applications for
service/operating contracts with the DOE.

6. Proof of Payment, as applicable

DC on Providing a National Policy and General Framework, Annex H: Checklist of Requirements
Roadmap, and Guidelines for Hydrogen in the Energy Sector

Page 3 of 3

=== dc2024-01-0001-pages-30.ppm ===
Annex I: Process Flowchart

I.1 Notification on the Research and Development Activity

Who May Avail: Any person or entity engaged in or desiring to engage in the research,
studies, experiments or other similar projects/activities involving hydrogen energy

Submission of Letter of Notification and
Profile of Research and Development Activity
(Annex D)

Resubmission

Evaluation of Completeness of
Documents

yy
Pa
9]
Tw
Dd)
.—
=<
o
= Complete?
Notify Applicant
Issuance of
Acknowledgement Letter to
Research Proponent
Legend:

( - Applicant <> - Decision

DC on Providing a National Policy and General
Framework, Roadmap, and Guidelines for
Hydrogen in the Energy Sector

Annex |: Process Flowchart on Filing a Notice Prior to
Engagement in any Hydrogen Energy Industry Activity
and Issuance of Certificate of DTI-BO! Endorsement
Page 7 of 3

=== dc2024-01-0001-pages-31.ppm ===
ee

1.2. Filing a Notice Prior to Engagement in any Hydrogen Energy Industry Project

Who may avail: All hydrogen energy industry participants

Submission of Letter of Intent
with Supporting Documents of the Hydrogen
Energy Industry Participant

Evaluation of Completeness and
Correctness of Documents

Resubmission

3 working days

Complete?
Accurate?

Notify Applicant

Issuance of
Acknowledgement Letter to
Hydrogen Energy Industry
Participant

Endorsement of
Documents to appropriate
DOE Bureau *

7 working days

“For availment of incentives, processing of service contracts, etc.:

Applicable Law Bureau In-Charge
RA 9136: Electric Power Industry Reform Act Electric Power Industry Management Bureau
RA 9513: Renewable Energy Act Renewable Energy Management Bureau
RA 11285: Energy Efficiency and Conservation (EEG) Act Energy Utilization Management Bureau
RA 11534: Corporate Recovery and Tax Incentives for tgs
Enterprises CREATE Act y Energy Utilization Management Bureau

RA 11697: Electric Vehicle Indust Development Act (EVIDA Energy Utilization Management Bureau

DC2023-04-0008: Prescribing the Policy for Energy Storage .
System in the Electric Power Indust Electric Power industry Management Bureau

DC on Providing a National Policy and General
Framework, Roadmap, and Guidelines for
Hydrogen in the Energy Sector

Annex I: Process Flowchart on Filing a Notice Prior to
Engagement in any Hydrogen Energy Industry Activity
and Issuance of Certificate of DTI-BO! Endorsement
Page 2 of 3

=== dc2024-01-0001-pages-32.ppm ===
1.3 Issuance of Certificate of BOI Endorsement for Incentives under RA11534

Who may avail: Hydrogen Energy Industry Participants soliciting incentives under
RA11534

Submission of Application Letter for BO!

Endorsement with Supporting Documents including
DOE Acknowledgement Letter

Evaluation of Completeness and
i esubmission
1 working day Correctness of Documents

Complete?
Accurate?

No
Notify Applicant

Yes

Issuance of Order of Payment to
the Hydrogen Energy Industry
Participant

1 working day

Payment of Php20,000.00 for the
Processing of Endorsement and

Submission of Proof of Payment

16 working days Technical, Financial, and Legal
Evaluation of Documents

Resubmission

Complete?
Accurate?

Notify Applicant

Yes

Endorsement to BOI and Issuance of
Certificate of BOI Endorsement to Hydrogen
Energy Industry Participant

2 working days

DC on Providing a National Policy and General
Framework, Roadmap, and Guidelines for
Hydrogen in the Energy Sector

Annex |: Process Flowchart on Filing a Notice Prior to
Engagement in any Hydrogen Energy Industry Activity
and Issuance of Certificate of DTI-BOIl Endorsement
Page 3 of 3

=== dc2024-01-0001-pages-33.ppm ===
Annex J: Application Letter for BOI Endorsement

Company Logo/Letterhead

Date

Mr./Ms.

Director

Energy Utilization Management Bureau
Department of Energy

Energy Center, Rizal Drive, Bonifacio Global City
Taguig City

Dear Mr./Ms.

We would like to express our intent for our hydrogen energy project to be endorsed to the Board of
Investment (BOI) for fiscal incentives granted under RA11534 or the Corporate Recovery and Tax
Incentives for Enterprises (CREATE) Act.

The following are the details of our hydrogen energy project:

. Name of Hydrogen Energy Industry Participant:

Office Address:
. Office Contact Number:
Oifice E-mail Address:
Hydrogen Energy Industry Activity:
Hydrogen Energy Industry Project:

. Hydrogen Energy Industry Project Location:
. Capacity of Hydrogen Energy Industry Project (if applicable):
. Overall Cost of Hydrogen Energy Industry Project/Capital Investment (in Php):

OONDAARWNS

We are also attaching other pertinent supporting documents for consideration.

For any queries regarding this notification, please do not hesitate to contact Mr./Ms.
at our telephone no. 1234-5678 or email address at sample@sample.com.

Thank you.

Sincerely yours,

Signature over Printed Name
Position

DC on Providing a National Policy and General Annex J: Application Letter for BO] Endorsement
Framework, Roadmap, and Guidelines for Page 1 of 1
Hydrogen in the Energy Sector

=== dc2024-01-0001-pages-34.ppm ===
DC on Hydrogen Energy Guidelines
Annex K: Report on the Hydrogen Energy Industry Activity
K.1 Project Details

Company Logo/Header

Name of the Hydrogen Energy Project:

Hydrogen Energy Industry Activity, please check as applicable:

CO Pre-development OQ Distribution
1 Construction 0 Importation
O Production ( Exportation
O Storage O Utilization
O Transmission O Others:

a

Address:

Brief Description of the Project:

Period Covered:

insert pictures here with brief description of each picture. Minimum of four (4) pictures.

(Note: Pictures submitted will become property of the DOE.)

Submitted by: Date:

Signature over Printed Name
(Position)
Authorized Representative

DC on Providing a National Policy and General Annex K: Report on the Hydrogen
Framework, Roadmap, and Guidelines for Hydrogen Energy Industry Activity
in the Energy Sector

Page 1 of 3
=== dc2024-01-0001-pages-35.ppm ===
DC on Hydrogen Energy Guidelines
Annex K: Report on the Hydrogen Energy Industry Activity
K.2 Facility Details

Company Logo/Header

Name of the Hydrogen Energy Project:

Business Address:

Period Covered:

%Completion:
Date of Completion:

List of Equipment, add rows as may be necessary:

DC on Providing a National Policy and General Annex K: Report on the Hydrogen
Framework, Roadmap, and Guidelines for Hydrogen in the Energy Industry Activity
Energy Sector Page 2 of 3

=== dc2024-01-0001-pages-36.ppm ===
BC on Hydrogen Energy Guidelines
Annex K: Report on the Hydrogen Energy Industry Activity
K.3 Production, Storage, Transmission, Distribution, and Utilization

Company Logo/Header

‘Name of the Hydrogen Energy Project:
Business Address:
Period Covered:

‘ates Production; Storage epTrangsmissio onvang Dist
waa LUE NERS Peso fil BO! BS BO pICADIG

Rated Capacity, in MT, MWh, or MW:
Transmission Pipeline, in km:
Fleet Type: Number: Overall Capacity:
Oo Hauter Trucks
Qo Maritime Distribution
Total Capacity:
Ce

|__Monthé
source Totals REFFNEVGE JRE [Fr | Ne | Ge [total (Re [rr { Ne {Ge [toui |Re [Fr { Ne [Ge | otal | Re J FF [NE [Ge [Tein p Re | FF [ ne [ce [total Re | FF [Ne [Ge | Total
ini po ee ee eee
a es
jy (cyLocal Purchase Se a a a
[eh msoned ttt ttf tt
a ee ee a

9) Sold Locall
| (nyExported

DC on Providing a National Policy and General Framework, Annex K: Report on the Hydrogen Energy industry Activity
Roadmap, and Guidelines for Hydrogen in the Energy Sector . Page 3 of 3

=== dc2024-01-0001-pages-37.ppm ===
Annex L:
Schedule of Penalties

The following be imposed as stated in Section 23 of the Hydrogen Energy Guidelines with the

corresponding prohibited acts and violations:

‘Engagement {0 ; any hydrogen energy

industry activity, excluding research and
development, without prior notice to the DOE

Noncompliance of existing hydrogen energy
project to Section 13 of this Circular

Failure to provide accurate information or
provision of false or misleading information
as required

Violations of any responsibilities stated in
Section 18 of this Department Circular;

Refusal to submit to on-site inspections and
monitoring

1 Offense - Warning a and directive to
comply immediately

2"4 Offense — Fine of P100,000 with the
directive to comply immediately

3" Offense — Fine of P500,000

1st Offense — Warning and directive to
comply immediately

2.4 Offense — Fine of P100,000 and
revocation of Certificate

3 Offense — Fine of P500,000
1% Offense — Warning and directive to
comply immediately

2” Offense — Fine of P100,000 and
revocation of Certificate

3% Offense — Fine of P500,000 and
recommendation for revocation of
Certificate of DTI-BOI Endorsement

1% Offense — Warning and directive to
comply immediately

2 Offense — Fine of P7100,000 and
revocation of Certificate

39 Offense — Fine of P500,000 and
recommendation for revocation of
Certificate of DTI-BOI Endorsement

1% Offense — Warning and directive to
comply immediately

2.4 Offense — Fine of P100,000 and
revocation of Certificate

3% Offense -— Fine of P500,000 and
recommendation for revocation of
Certificate of DTI-BO! Endorsement

DC on Providing a National Policy and General Framework,

Annex L: Schedule of Penalties
Roadmap, and Guidelines for Hydrogen in the Energy Sector

Page 1 of 2

=== dc2024-01-0001-pages-38.ppm ===
Non-submission of reportoria!l requirements { 1% Offense — Warning and directive to
comply immediately

2 Offense — Fine of P100,000 with the
directive to comply immediately

3° Offense~ Fine of P500,000 and
recommendation for revocation of
Certificate of DTI-BO] Endorsement

The imposition of the administrative fines and penalties stated above shall be on a “per
violation” basis and without prejudice to the revocation of the Certificate of DTI-BOl
Endorsement.

DC on Providing a National Policy and General Framework, Annex L: Schedule of Penalties
Roadmap, and Guidelines for Hydrogen in the Energy Sector Page 2 of 2