Korean company G-Philos has submitted a proposal to the Investment Board of Nepal (IBN) to establish a green hydrogen production plant and fuel cell plant in the country.

The proposal includes setting up a pilot plant with a capacity of up to 20 megawatts for producing green hydrogen, alongside a fuel cell plant. G-Philos had submitted a pre-feasibility study report to the Investment Board on Baisakh 15, 2082 (April 27, 2025). Subsequently, the 63rd board meeting of the Investment Board granted the company permission to carry out a detailed feasibility study.

According to IBN spokesperson Pradyumna Prasad Upadhyaya, the board has approved G-Philos to conduct a detailed study regarding the pilot hydrogen project and the fuel cell plant.

The detailed study will assess whether Nepal’s hydropower resources are sufficient for large-scale green hydrogen production. It will also explore domestic demand in sectors such as transportation, industry, and energy storage, along with export potential in regional markets, investment and operational costs, environmental and social impacts, legal and policy frameworks, implementation of the pilot project, and expansion possibilities.

Upon completion of the feasibility study, a committee under the coordination of the Board’s Joint Secretary (Technical) has been formed to assess whether the project should proceed through a Swiss Challenge process. If deemed appropriate, the Board will call for competitive bidding to move the project forward.

The company aims to use electrolysis technology, powered by Nepal’s abundant hydroelectric energy, to produce green hydrogen. This involves splitting water molecules (H₂O) into hydrogen (H₂) and oxygen (O₂) using an electrolyzer. The electricity required for the process will be supplied from existing and under-construction hydropower plants.

The project is designed to be scalable in phases. Initially, hydrogen production will begin with a 20 MW capacity, with the potential for expansion depending on market demand and government policies, as per Upadhyaya.

As per the proposal, the produced green hydrogen is intended to be used in industries such as fertilizer and steel manufacturing, ammonium nitrate production, and energy storage systems. It also aims to export green hydrogen to neighboring countries like India and China.

Nepal’s Potential in Green Hydrogen

Hydrogen is being considered the fuel of the future, and recent technological advancements have given new momentum to its production and application worldwide.

Nepal's commitment to achieving net-zero carbon emissions can be supported significantly through the production and use of green hydrogen. Globally, the transition from fossil fuels to green hydrogen is accelerating, with major investments being made in hydrogen by developed countries.

With no need for a Power Purchase Agreement (PPA) and no wheeling charges, commercial production of hydrogen is becoming more feasible in Nepal.

According to Dr. Biraj Singh Thapa, head of Kathmandu University's Green Hydrogen Lab, global demand for green hydrogen is expected to surge over the next decade. “There is increasing interest globally in identifying the most cost-effective locations for green hydrogen production, and Nepal is among the top contenders due to its cheap electricity from hydropower,” he said in an earlier conversation with ICT Samachar.

Kathmandu University had already successfully tested a hydrogen car and refilling station — the first of its kind in Nepal.

With ample hydropower resources, Nepal can produce green hydrogen and use it for ammonia-based chemical fertilizer production, as well as export the by-products, contributing to foreign exchange earnings. This could also help reduce Nepal’s heavy dependence on chemical fertilizer imports, which currently leads to significant outflows of foreign currency.

(Originally published in Nepali, This is the English translation. Click here for Nepali content. Parts of this text have been translated with the assistance of AI-powered tools.)