Internal — Project Team
Energy Strategy Brief

Powering the Tarlac Data Center on Renewables

A three-layer renewable energy stack combining waste-to-energy, solar, and green hydrogen — positioned to make Tarlac one of Southeast Asia's cleanest data center environments.

Location: New Clark City, Capas, Tarlac
Target Load: 100–300 MW
RE Target: 50–70% at launch
Prepared by: MAKR / Tether AI
01 — The Challenge

Data Centers Need Clean, Always-On Power. Tarlac Doesn't Have a Single Source That Does Both.

Hyperscale and large colocation data centers require 100–300 MW of uninterrupted power at Tier III/IV uptime (99.999%). No single renewable source in Tarlac can deliver that today. The solution is a coordinated stack.

☀️

Solar — Abundant but Intermittent

~304 MW installed/planned in Tarlac. Excellent irradiance (4.5–5.5 kWh/m²/day) but only produces during daylight hours. Needs storage or backup to serve 24/7 loads.

🔥

WtE — Baseload but Small Scale

The New Clark City WtE plant (12 MW) will be the first large-scale waste-to-energy facility in the Philippines — right in Capas, Tarlac. Baseload capable but far below data center requirements alone.

Grid — Reliable but Dirty and Expensive

Philippines has 2nd highest power costs in SE Asia (~PHP 9.15/kWh). Grid is coal-heavy and prone to brownouts during peak season (March–May). Cannot be primary source for an ESG-positioned facility.

02 — The Strategy

A Three-Layer Renewable Stack

Stack these sources in sequence — each layer compensating for the limitations of the one above it. Together they can achieve 50–70% renewable energy mix at commercial data center scale.

01

Solar PV — Primary Electricity Source

Bilateral PPA with regional solar generators. ~304 MW available in Tarlac. Target: cover 50–60% of annual energy needs at lowest cost-per-kWh.

~304 MW Regional
Cost: PHP 4.5–6.0/kWh via PPA — cheapest clean energy option. DOE-mandated battery storage for RE plants over 10 MW applies. Capacity factor ~20% — storage is non-negotiable.
02

Waste-to-Energy — Baseload Anchor

New Clark City WtE plant (Capas, Tarlac). 600 metric tons/day MSW. 12 MW of continuous electricity — 24/7 baseload, 85–90% capacity factor. Classified as renewable energy under RA 9513.

12 MW Baseload
German technology (MARTIN GmbH). Filipino-Indian consortium (ATD + Uttamenergy). Lease signed November 2025. Build timeline TBD. Engage BCDA now for power offtake agreement before commissioning.
03

Green Hydrogen (Drift Energy) — Long-Duration Storage & Backup

Autonomous sailing vessels produce green hydrogen at sea using underwater turbines + AEM electrolyzers. Delivered to nearest port (Subic Bay, ~80km), trucked to facility. Powers hydrogen fuel cells — replaces diesel backup generators entirely.

150K kg H₂/vessel/yr
Drift Energy: UK startup, Octopus Ventures-backed. IRENA SIDS partner (Philippines is SIDS-relevant as island nation). First vessel deployment 2027. Pre-commercial but 30+ vessels on order book. Ideal for eliminating diesel dependency for critical backup power.
04

Battery Storage + Grid — Short-Duration Buffer & Redundancy

Battery storage handles the solar gap (clouds, overnight). Grid connection maintained as final backstop for Tier III/IV SLA compliance — but minimized in normal operation.

99.999 % Uptime SLA
DOE now mandates energy storage for RE plants over 10 MW (February 2026). Grid serves as Tier IV redundancy only — not primary source. Brownout risk (March–May) is absorbed by H2 fuel cells.
03 — Drift Energy

Why Drift Energy Belongs in This Strategy

Drift is not a waste-to-energy company. They are a green hydrogen producer. But they solve the exact problem WtE and solar cannot: long-duration, dispatchable clean energy storage that eliminates diesel dependency.

What They Build

Autonomous Sailing Vessels That Make Green Hydrogen at Sea

High-performance hydrofoil catamarans with collapsible aerofoil rigs sail global tradewind corridors. Underwater turbines generate electricity as the vessel moves at up to 25 knots. Onboard AEM electrolyzers (partnership with Enapter, announced Feb 2026) split seawater to produce green hydrogen stored in standard 40ft ISO containers.

An AI routing algorithm ("Goldilocks Algorithm", built with Faculty AI) optimizes routes for wind conditions and times port returns when tanks are full.

Output per vessel: ~150,000 kg of green hydrogen per year. Equivalent to powering 800–1,000 homes, or in a data center context: clean fuel for hydrogen fuel cells that replace diesel backup generators.

Ocean Wind Sailing Vessel Turbines H₂ Production at Sea Port Delivery (Subic Bay) Truck to Tarlac Fuel Cell Backup Power
🏝️

Philippines Qualifies

Drift joined IRENA's SIDS Lighthouses Initiative (Jan 2025) supporting Small Island Developing States. The Philippines is SIDS-relevant as a 7,600-island archipelago nation. CEO attended SIDS4 conference (UN, Antigua 2024).

🚢

Port Logistics Are Viable

Subic Bay Freeport (~80km from Tarlac) is a natural hydrogen delivery point. Established truck routes Subic–Tarlac. ISO container-format H₂ storage integrates with standard logistics.

🔋

The Diesel Problem Solved

Every major data center runs diesel backup generators. Fuel cells powered by green hydrogen deliver identical function (dispatchable, instant-on backup) with zero emissions and no fuel supply chain risk from diesel.

📅

Timeline Reality Check

Drift's first commercial vessel targets 2027. Pre-commercial today. This is a 2028–2030 play for data center backup — build the relationship and offtake structure now, not the infrastructure.

04 — Medical Waste

Medical Waste: Keep It Separate from WtE

The question of medical/clinical waste feeding the WtE plant is a valid instinct — but current Philippine law does not permit it.

⚠️ Current Legal Position

Republic Act 8749 (Clean Air Act) bans incineration of biomedical waste. The New Clark City WtE plant is licensed for municipal solid waste only. Medical waste cannot legally be co-processed with MSW in any Philippine WtE facility today. Legislation to amend this is pending in Congress but is not yet law.

Waste Type WtE Eligible? Treatment Path Tarlac Option
Municipal Solid Waste Yes Direct to WtE plant (New Clark City) ATD/Uttamenergy plant
Medical / Clinical Waste No Autoclave/sterilize first → landfill residual Joechem Environmental, Clean Leaf International (both Capas)
Hazardous Industrial Waste No DENR-accredited TSD facility Joechem Environmental (DENR-accredited, ISO 14001)
Biomass (rice husk, bagasse) Separate Biomass cogeneration 2M+ tons/year available in Central Luzon

Monitor pending congressional bills. If Clean Air Act amendment passes, medical waste WtE integration becomes viable and Tarlac's existing TSD infrastructure (Joechem, Clean Leaf) positions the facility perfectly to expand.

05 — Policy Landscape

The Policy Stars Are Aligned — Act Now

Multiple government programs are converging in Tarlac's favor in 2026. First-mover advantage is real.

DOE Data Center Energization Policy — March 2026

Dedicated policy being issued this month to assure investors of stable, clean power supply for data centers. Supports 35% RE by 2030 target.

This Month

WtE Green Energy Auction — Q2 2026 (Nationwide)

DOE's 2nd WtE/biomass auction opens nationwide — Tarlac-based projects eligible. ERC ceiling proposed at PHP 8.02/kWh. Government-backed offtake mechanism.

Q2 2026

RA 9513 — WtE Classified as Renewable Energy

7-year income tax holiday from commercial operations. Duty-free equipment import. Priority grid dispatch. WtE qualifies today under existing law.

Active

CREATE MORE Act — Tarlac Incentive Stack

Additional 7-year ITH for Tarlac location + 100% power expense deduction. Stacked on RA 9513 = potentially 14 years combined tax benefits.

Active

DOE Battery Storage Mandate — February 2026

All RE plants over 10 MW must now include energy storage. Aligns with hybrid stack strategy — mandatory compliance, not optional add-on.

Active

Clean Air Act Amendment — Medical Waste WtE

Bills in Congress to permit thermal treatment of medical waste under modern WtE standards. Not yet law. Monitor closely.

Pending
06 — Action Plan

Recommended Next Steps for the Project Team

These actions are sequenced by urgency. The WtE plant and DOE policy timeline create a narrow window for first-mover positioning.

01

Engage BCDA Directly — Power Offtake Agreement

BCDA is simultaneously the landlord, WtE champion, and data center champion in New Clark City. Request a meeting to explore: (a) data center site co-location adjacent to WtE plant; (b) preferential power offtake agreement from the 12 MW WtE facility before commissioning. No other developer is having this conversation yet.

02

Negotiate Solar PPA with AboitizPower or PetroSolar

Two established solar operators in Tarlac with combined 115+ MW capacity. Issue RFP for 10–50 MW long-term PPA. Under EPIRA, facilities with 1 MW+ peak demand can source directly from any supplier. This is the cheapest clean energy at PHP 4.5–6.0/kWh.

03

Open Commercial Dialogue with Drift Energy

Contact: ben@drift.energy (CEO Ben Medland). Frame as an offtake partnership for green hydrogen supply to Tarlac data center (via Subic Bay port). 2027–2028 delivery horizon. Drift is actively seeking SIDS/island nation partnerships — Philippines is a fit. Establish the relationship now; structure the contract when their commercial vessel timeline is confirmed.

04

Participate in DOE Q2 2026 WtE/Biomass Auction

If the project team wants to develop proprietary WtE capacity beyond the BCDA plant, the nationwide Q2 2026 auction provides a government-backed offtake mechanism. Consider biomass (rice husk) as a co-generation component given Central Luzon's 2M+ ton/year surplus.

05

Procure DENR-Accredited Medical Waste Partners

Joechem Environmental Corp. and Clean Leaf International Corp. (both Capas, Tarlac) are already DENR-accredited for hazardous/medical waste treatment. Engage both for service agreements covering the data center's clinical waste stream. Do not attempt to route medical waste through WtE under current law.

06

Commission a Hydrogen Fuel Cell Feasibility Study

Commission an engineering study on hydrogen fuel cell backup systems as a direct replacement for diesel generators. Study should model: fuel cell capex vs diesel capex, H₂ storage requirements, Subic–Tarlac logistics cost, and break-even timeline. This is the missing technical piece before committing to Drift Energy as a supplier.

07 — Summary

Energy Stack at a Glance

Layer Source Output Role Status
01 Solar PV
AboitizPower / PetroSolar
~304 MW regional Primary electricity Available Now
02 Waste-to-Energy
New Clark City (BCDA)
12 MW baseload 24/7 baseload anchor Lease Signed, Building
03 Green Hydrogen
Drift Energy → Subic Bay
H₂ fuel for fuel cells Diesel replacement, backup 2027 Target
04 Battery Storage
On-site BESS
Short-duration buffer Solar gap bridging Mandated by DOE
05 Grid Connection
Meralco / NGCP
Full capacity Tier IV redundancy only Available Now