Investment Board Nepal (IBN) and South Korea’s G-Philos met in Kathmandu to seal a memorandum of understanding kicking off a feasibility study for a green hydrogen and fuel cell plant in Nepal. The signing—fronted by IBN CEO Sushil Gyewali, G-Philos CEO Gawoo Park, and Ambassador Park Tae-Young—signals a public-private push to tap Nepal’s vast hydropower for green hydrogen production. Over the coming months, teams will tackle engineering designs, investment models, regulatory frameworks, and social impacts, with plans to pilot 20 MW of electrolyzer capacity.
Historical background
Nepal’s energy story has always run on its rivers. Hydropower has electrified remote communities and even fueled exports to India and China, positioning Nepal as a net exporter of renewable electricity. Yet hydrogen stayed niche—small trials by Kathmandu University and government agencies in 2021 stalled amid high costs and murky regulations. This MoU is the first sizable foreign-backed push to weave green hydrogen into Nepal’s renewable-export strategy.
Main takeaways
- The MoU between IBN and G-Philos will scope out large-scale hydrogen production and fuel cell technology in Nepal.
- The study covers technical design, CAPEX/OPEX breakdown, market potential, legal & environmental checks, plus social impact.
- Pilot plans aim to deploy up to 20 MW of electrolyzer capacity, leveraging Nepal’s surplus hydropower.
- A Swiss Challenge procurement could follow, ensuring a competitive, transparent process.
- Potential perks: diversifying the energy mix, cutting fossil imports, creating jobs, and positioning Nepal as a regional green hydrogen exporter.
Technical snapshot
At the core is electrolysis: splitting water into hydrogen and oxygen with renewable power. Power conversion systems from G-Philos will manage voltage and current between the hydropower turbines and electrolyzers, smoothing grid fluctuations. The study will compare proton-exchange membrane (PEM) and alkaline electrolyzers for efficiency, lifespan, and cost. Produced hydrogen can be stored on-site, fed into fuel cells for power and heat, or compressed for transport, with water vapor as the only byproduct.
They’ll weigh storage options too: compressed gas at 700 bar, liquid hydrogen at cryogenic temps, or chemical carriers like ammonia or LOHCs, balancing cost, safety, and logistics.
Strategic alliance
IBN, chaired by the Prime Minister and led by CEO Sushil Gyewali, fast-tracks major energy projects. G-Philos, under CEO Gawoo Park, brings decades of expertise in renewables and fuel cell technology. With Ambassador Park Tae-Young’s diplomatic backing, this team blends regulatory muscle, local insight, and cutting-edge tech to map out Nepal’s hydrogen future.
About G-Philos
G-Philos is a South Korea–based clean energy firm specializing in fuel cell technology, power conversion, and green hydrogen systems. They’ve deployed distributed renewables and fuel cells across Asia, focusing on R&D, manufacturing, and tech transfer to accelerate sustainable energy adoption.
Road to investment
Funding figures are under wraps, though local reports hint at multi-million-dollar backing, potentially NPR 7 billion. The ten-month feasibility study will break down capex, opex, financing options—equity, debt, concessional loans—and incentives like tax breaks. It’ll chart hydrogen corridors to India, assess port handling for exports, and review domestic delivery via pipelines or tube trailers. Afterward, a Swiss Challenge may invite competitive bids.
Broader impacts
Despite exporting hydropower, Nepal still imports most oil and gas. Converting surplus electricity into green hydrogen could cut import bills, slash emissions, and kickstart new industries. Transport fleets, steel plants, and the power grid could all tap this locally produced, zero-emission fuel. Plus, building out the infrastructure will create construction, engineering, and operations jobs—and spark training programs to upskill Nepali technicians in hydrogen production.
Challenges ahead
There are hurdles. Commercial success hinges on locking in long-term off-take deals—domestic for buses, trucks, and industry, or exports to India and China. Regulators must sort out hydrogen pricing, safety standards, land use, and permits quickly. And water usage for electrolysis needs careful assessment to avoid harming irrigation and ecosystems. Earlier pilots in 2021 stumbled over policy gaps; this feasibility study aims to learn from those mistakes.
Looking ahead
This MoU is more than a formality—it’s Nepal’s green hydrogen starting pistol. Nail the study with a bankable plan, and detailed engineering, procurement, and financing could follow. Construction might kick off by 2027, with a working plant online three to four years later. For investors, policymakers, and energy enthusiasts, Kathmandu could soon become South Asia’s hydrogen innovation hub.
