A fortnight ago, Nepal added a feather to the energy cap: The production of green hydrogen began at the Jhimruk Hydropower Station in Pyuthan with the installation of a 50 kW green hydrogen plant. The project was initiated with technical assistance from the World Bank and financial assistance from the UK International Development.
Green hydrogen is produced through the electrolysis of water using the renewable energy generated by hydropower stations. Wind or solar power may also be used, as they are also renewable sources of energy. The major hallmark of green hydrogen is zero emissions. So, its use is aimed at reducing dependence on fossil fuels that contribute to greenhouse gas emissions, which have brought about a climate crisis. There are also other types of hydrogen gas. Grey hydrogen is the most common with wide use. Hydrogen is extracted from natural gas with the emission of a lot of carbon dioxide but with no carbon capture. Likewise, blue hydrogen is produced using fossil fuels with carbon capture and storage (CCS) technology to trap emissions, but it is not completely carbon-free.
Low-carbon energy
Green hydrogen is considered a key source of energy when it comes to transitioning to low-carbon energy. It is a highly versatile gas. Excess green hydrogen can be stored for future use. Green hydrogen has applications in several fields such as heavy industry, shipping and long-haul transport. It can be used in steel, cement, glass and chemicals factories. It also has applications in the shipping and aviation industries. Green hydrogen is used in the form of synthetic fuel such as ammonia and methanol using fuel cell technology. However, it is far behind other alternative fuels such as electricity used in transport.
The production of green hydrogen is a costly proposition vis-à-vis all other methods of hydrogen production. With expanding technology and mass production, the cost is expected to come down by 2030. Green hydrogen is also pushed as an alternative to batteries for short-duration energy storage as it has features of grid-energy storage and long-duration seasonal energy storage.
The global production of green hydrogen is rising with policy incentives and large-scale projects in operation. Green hydrogen has a pivotal role to play in fighting global warming and climate change. Experts suggest that there is a vast scope for the production of green hydrogen in Nepal. In recent years, the generation of hydropower has increased remarkably. So, an opportune time has come for Nepal to convert its vast hydropower into green hydrogen for domestic, industrial, transport and other uses. Green hydrogen is also a stepping stone towards decarbonisation, as the power source that is obtained from hydropower, solar farms or wind turbines is completely renewable. At a time when Nepal has to spend billions of rupees on the imports of fossil fuels from India, the increased use of green hydrogen could be a boon, contributing to saving a lot of hard-earned money and representing a milestone in the energy sector.
Nepal has adopted the Green Hydrogen Policy 2080. The policy aims at converting huge water resources into green hydrogen and transitioning to decarbonising such sectors as industry, transport and agriculture. The policy has core strategies such as a legal and regulatory framework, investment incentives, carbon trading, the production of chemical fertilisers, research and development, and international collaboration. Under the legal and regulatory framework, safety standards and legal mechanisms regarding production, storage and transport are in place. Under the investment incentives, there is a provision of attractive incentives such as concessional electricity tariffs, tax incentives and VAT exemptions designed to woo the private sector. Under carbon trading, active participation in global carbon markets is accentuated so as to take advantage of emission reductions.
Similarly, the production of chemical fertilisers such as green ammonia and urea is prioritised. This will obviate the need for importing a large quantity of chemical fertilisers from abroad every year. The scarcity of chemical fertilisers in the peak planting season will also be eliminated. The policy intends to build technical capacity and support academic-industrial collaboration. It may be noted that the Green Hydrogen Laboratory at Kathmandu University, in collaboration with the Nepal Oil Corporation, has successfully launched Nepal’s first on-site hydrogen production and refueling station. The policy stresses partnerships with countries and organisations for knowledge sharing, innovation, and best practices.
National roadmap
The government has set a long-term target. The national roadmap formulated for this very purpose aims at replacing 25 per cent of coal, 20 per cent of diesel oil and 15 per cent of liquefied petroleum gas (LPG) with green hydrogen-based alternatives by 2050. The roadmap also envisions a 60 per cent reduction in chemical fertiliser imports by the same deadline. Nepal aims at establishing itself as a clean energy exporter.
Nepal has bright prospects of revolutionising the energy sector with green hydrogen technology. However, the country needs to upgrade technology and produce skilled human resources. With the commercial-scale production of green hydrogen, it can enjoy multi-pronged benefits: Dependence on fossil fuels can be reduced, saving billions of rupees; a cleaner environment can be created with the reduced use of fossil fuels; and extra money can be earned through carbon trading. So, the government needs to promote the production and use of green hydrogen in collaboration with the private sector.
(Maharjan has been regularly writing on contemporary issues for this daily since 2000.)
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