Hydrogen developers may be required to disclose full project life cycle cost

Hydrogen developers may be required to disclose full project life cycle cost

THE Department of Energy (DoE) said it may require hydrogen developers to estimate decommissioning and disposal costs when proposing projects.

“This broader coverage ensures a comprehensive approach in managing the entire cycle of facilities involved in the production, storage, transmission, distribution, and utilization of hydrogen energy resources for various applications, be it power or non-power related,” Patrick T. Aquino, director of the DoE-Energy Utilization Management Bureau, said in a public consultation last week.

According to a revised draft circular, decommissioning is “the permanent retirement of a hydrogen energy facility or unit from operation upon reaching its maximum economic life or discontinued operation in the facility.”

Disposal is defined as the “physical removal of equipment or material used that are no longer needed.”

Mr. Aquino said the DoE will have the authority to oversee decommissioning and disposal.

“The DoE, in collaboration with the DENR-EMB (Department of Environment and Natural Resources-Environmental Management Bureau) and other pertinent government agencies, (will) develop a separate guideline detailing the proper management of decommissioning and disposal activities specifically related to the hydrogen energy industry,” he said.

Mr. Aquino also said the revised draft expanded the classification of hydrogen production methods by adding chemical reactions, among others, to the list of energy resources.

“The revision broadens this classification by incorporating additional methods like chemical reactions without limiting the potential resources used for energy production,” he said.

The DoE seeks to introduce a national policy framework, roadmap, and guidelines for hydrogen in the energy sector. It recognizes hydrogen as “an innovative solution” for energy transition. — Sheldeen Joy Talavera