PH's First Hydrogen Facility to Rise in Pilipinas Shell’s Refinery

Pilipinas Shell Petroleum Corporation (Pilipinas Shell), in partnership with Air Liquide Philippines, Inc. (Air Liquide), held its groundbreaking ceremony for its Integrated Hydrogen Manufacturing Facility at the Shell Refinery in Batangas City last August 29.

The facility will be the first of its kind in the country and is targeted to improve the efficiency and competitiveness of the refinery.

"We've embarked on a partnership that will capitalize on the strength and expertise of both parties--Pilipinas Shell's 105 years of experience in the oil industry and Air Liquide's 117 years in the industrial gas space. This partnership will develop the capability to produce hydrogen which enables Pilipinas Shell to process more crude oil varieties into more quality fuels. We expect to complete the project by end-2020 and reap the benefits from this venture starting 2021," said Paolo Barredo, Pilipinas Shell's Business Opportunity and Business Development manager.

Under the partnership, a hydrogen manufacturing unit (HMU) will be built on-site to supply the additional hydrogen requirements that will enable Pilipinas Shell to extract more diesel fuel compared to its current product slate. A dedicated facility will also be set up that will capture and liquify carbon dioxide for other uses, a first of its kind, according to Boon Hai Ng, Air Liquide Southeast Asia Region vice president.

"This undertaking is proof of our commitment to invest in projects that will enhance the competitiveness of our refinery to support the country's energy needs. The carbon dioxide produced from the HMU will be recovered for further industrial use," said Cesar Romero, Shell companies in the Philippines country chairman.

"We recognize that by leveraging on each other's expertise, we will be able to bring more benefits not just to the company but to the country as well," added Jan-Peter Groot Wassink, Shell Tabangao Refinery general manager.

Batangas City Mayor Beverley Rose Dimacuha lauded efforts to create the hydrogen manufacturing facility, which she sees "will carve a better future for Batangas and the entire country."

Also in attendance at the groundbreaking were Batangas 5th District Representative Marvey Mariño and Philippine Board of Investments Governor Angelica Mapua-Cayas.