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Agriculture is one of the most important sectors in Nepal, contributing 23.95 percent to the nation’s GDP and providing jobs to more than 60 percent of the population. However, the sector faces several problems, mainly food security, attributed to the high usage of imported fertilizers, most of which are urea. In fiscal year 2024-25, Nepal plans to import around 550,000 tons of chemical fertilizers, with urea constituting a bulk. Moreover, the Nepal government has allocated a budget Rs 27.95bn as subsidy to ensure a steady supply of fertilizers to the farmers. Hence, the government bears nearly two-thirds of the fertilizer price to help alleviate the pressure on farmers. However, constant supply breaks and bad distribution channels threaten food production in Nepal, necessitating the construction of a urea manufacturing plant to boost food security.

JICA study report 1984

Nepal’s attempt at local production of fertilizer began in 1984, when Japan International Cooperation Agency (JICA) conducted a feasibility study on the production of 275 TPD green urea plants in Nepal. The primary focus was to produce green hydrogen via water electrolysis, one of the percussors for urea. However, Nepal’s hydropower capacity was only 156 MW at that time, making electricity per unit price very high. The study concluded that the water electrolysis method was only feasible if the electricity price was reduced by 40 percent, and hence the idea was abandoned.

IBN report 2015

The Infrastructure Development Corporation, Karnataka (IDeCK) and the Institution of Agricultural Technologists (IAT), along with Shah Consultant International Limited, Nepal, under the Office of Investment Board Nepal (OIBN) conducted the 2015 feasibility study on 700 kT/year urea plant, which became the second major attempt to develop a urea fertilizer plant in Nepal since the 1984 JICA study. The study evaluated Nepal’s escalating fertilizer import situation as price instabilities and supply chain breakdowns endangered national food security. The analysis assessed three production methods: electrolysis, coal gasification and natural gas steam reforming for hydrogen production. The study concluded that using natural gas as feedstock made the urea plant feasible. The research team recommended that Nepal should import natural gas from Jagdishpur (India) through pipelines followed by plant construction on a 400-acre site in Dhalkebar Dhanusha as the country lacks natural gas extraction capabilities. The evaluation showed that a natural gas-based plant costs $665m, coal gasification totalled $953m and electrolysis reached $1,305m. The research base considered that the government of Nepal would import natural gas at a fixed price from India for smooth operations of the urea plant. 

IBN comparative report 2021

The Investment Board Nepal (IBN) has prepared a report that examines two urea production methods, including natural gas-based and water electrolysis-based (green hydrogen) systems. The analysis for 701,250 T/year urea demonstrates that natural gas-based manufacturing meets financial criteria through cost-effective capital investments totaling $665m and production expenses amounting to $278 per ton. However, this process requires a 108-km gas pipeline from India. The risks associated with Indian natural gas imports become substantial due to two factors: India will deplete its gas reserves by 2040, and gas produced in the country will increase in price to double its current levels until then. This creates long-term supply uncertainty coupled with high costs. The water electrolysis process is environmentally friendly yet remains uncommercial because it comes with billion-dollar capital expenses ($1.3bn) and produces hydrogen at $656 per ton, requiring 450 MW of daily electrical power and CO₂ capture from cement facilities. According to the report, Dhalkebar stands out as the optimal location because of its existing infrastructure, and the authors endorse establishing a public-private funding partnership. The future development of green ammonia through water electrolysis requires subsidized electricity costs to become viable. The research demonstrates that local fertilizer production would decrease Nepal’s dependence on imported materials and subsidy programs, yet essential infrastructure development and supportive policies need implementation.

KU feasibility report 2022

The Green Hydrogen Lab at Kathmandu University evaluated the possibility of generating 200 kT/year of green urea in 2022 and submitted its findings to the Ministry of Agriculture and Livestock Development. The feasibility study primarily focused on the surplus hydroelectricity in Nepal, which serves as the key benefit for local green hydrogen production through water electrolysis, thus ensuring the proposed urea plant operates independently from Indian natural gas imports. The study promoted domestic renewable-based solutions for urea production as it recognized the risks and price instability of importing natural gas along with the difficulties of managing border pipelines. The use of green hydrogen instead of fossil fuels in plant operations would make Nepal a pioneer in sustainable industrial development through substantial carbon emission reduction. The research demonstrated how green urea production qualifies as carbon credit material suitable for international offset programs. The new income source generated from green hydrogen operations would increase project profitability, thus attracting foreign investment. The report advocates for government incentives, policy backing, and public-private partnership (PPP) to realize the successful deployment of the green urea plant that will strengthen Nepal’s food security, energy independence and climate commitments.

GGGI report 2024

In 2024, the Global Green Growth Institute (GGGI) Nepal performed extensive research on green fertilizer production in Nepal by creating Di-Ammonium Phosphate (DAP) and Urea from green hydrogen. Researchers analyzed renewable energy integration into hydrogen production by obtaining 100 MW from the Nepal Electricity Authority (NEA). The study focused on the production of 103,950 T/year green urea and 264,000 T/year DAP. WindPower Nepal and Hydrovert Services led the project forward by performing a Pre-FEED study to evaluate the technical aspects, economic viability and infrastructural requirements for building a green hydrogen-based fertilizer plant. The study assessed the Bhalu Chira site’s characteristics by examining its ability to accommodate the proposed facility through assessments of land resources and logistical and accessibility factors. The total capital cost of the green urea plant was calculated to be $284.88m, and the capital cost of DAP was around $268.26m. Green hydrogen utilization within the project will improve Nepal's food production independence alongside carbon footprint reduction initiatives. The research findings will create a base for upcoming green fertilizer industry policy decisions and investment decisions in Nepal.

Hariharpurgadhi pre-feasibility study 2024

In 2024, Hariharpurgadhi rural municipality (Sindhuli district) signed a Memorandum of Understanding (MoU) with Kathmandu University to conduct a pre-feasibility assessment of a 200 kT/year green urea production facility. The project's central point involved extracting carbon dioxide from cement factories in Hetauda before transporting it through a constructed pipeline to the urea production facility. The research demonstrated pipeline transport of CO₂ was not economical because of substantial construction expenses and complex transportation requirements. The pre-feasibility study recommended the construction of a cement industry along with the green urea plant at Hariharpurgadhi as the solution to maintain a continuous carbon dioxide supply for urea synthesis. The project could develop a sustainable industrial cycle through this combined strategy to convert cement-based CO₂ emissions into synthesized ammonia using green hydrogen. The research demonstrated that the proposed solution could help Nepal decrease its dependence on imported fertilizers and advance carbon capture and utilization (CCU) practices that support a sustainable agricultural sector.

Conclusion

A green urea plant establishment in Nepal will produce lasting advantages since the government has to allocate billions of rupees for agricultural sector fertilizer subsidies every year. The domestic production of urea from green hydrogen combined with local carbon dioxide supplies enables Nepal to decrease expensive import costs while establishing independent fertilizer availability. The stable fertilizer prices, along with prompt distribution, will help farmers decrease expenses while improving their productivity levels. National food security will be enhanced through this project because it delivers dependable fertilizer supplies that produce elevated crop harvests and safeguard against worldwide supply chain interruptions. The initiative allows Nepal to develop carbon credits from green hydrogen and industrial emission capture activities, supporting domestic climate goals and accessing international carbon financing. Further, Nepal could generate carbon credits that can be traded internationally, creating an additional revenue stream. Establishing a green urea plant will lead to employment opportunities at various stages, including construction, plant operation and maintenance, stimulating economic growth in the region. Moreover, a circular economy practice in Nepal can develop when setting up a cement sector alongside the urea plant to convert its CO₂ emissions into valuable products instead of atmospheric release. These strategic developments will empower Nepal’s agricultural activities while decreasing government financial burdens and realizing sustainable growth through new industrial development alongside environmental management.

The race to decarbonize the transportation sector has brought two primary contenders to the forefront for heavy-duty applications: hydrogen-powered vehicles (HPVs) and battery electric vehicles (BEVs). Road transport, especially that of commercial vehicles such as trucks and buses, and other large vehicles is pivotal to the global supply chain and public transportation but at the same time contributes highly to emissions of greenhouse gases. Both technologies promise reduced emissions, but their viability for heavy-duty transport varies based on energy density, infrastructure, operational range and cost.

Energy density

Energy density is a critical factor for heavy-duty vehicles since large vehicles have very high energy requirements. Hydrogen fuel cells utilize both compressed hydrogen gas and liquid hydrogen, which possess energy densities of approximately 120 MJ/kg and 141 MJ/kg, respectively. This in turn gives hydrogen vehicles high energy densities allowing for large ranges without compromising payload capacity. In contrast, lithium-ion batteries used in BEVs have an energy density of approximately 0.2 MJ/kg. The lower energy density implies that very large and heavy batteries are needed for long ranges, which may decrease the payload. Advances in battery technology such as solid-state batteries are an example of working on the mentioned gap but are yet to be developed fully.

Capital and maintenance costs

In the acquisition and maintenance cost comparison for heavy-duty transport, hydrogen trucks, which cost approximately $350,000 for a 40 kg fuel tank capacity, are much costlier than electric trucks that, on average, cost $150,000 for a 150-kWh battery pack, because of the immaturity of fuel cell technology. But in the long run, hydrogen trucks are more cost-effective in terms of total cost of ownership (TCO) because the fuel cell has a much longer lifespan than batteries and has lower maintenance costs than electric trucks. Although electric trucks are more economical at purchase, they have higher maintenance costs over time, primarily due to battery degradation and eventual replacement.

Refueling and charging infra

Refueling time is a major operational consideration, and since hydrogen vehicles can be refueled in 5-15 minutes, they outperform electric vehicles. For example, the Shell refueling station in Long Beach, California, has a capacity of about 1 MW at 700 bar high-pressure and can refuel 50 hydrogen-powered vehicles with 30-40 kg tank capacity per day. But charging of BEVs takes much longer compared to refueling of HEVs. High output fast chargers—DC chargers over 350 kW like in Tesla’s V4 supercharging station for its semi trucks with massive ~900 kWh packs—can charge a battery to 80 percent within half an hour and limit vehicle throughput to 10-15 per station per day. Standard charging mechanisms include AC chargers, which usually take many hours and therefore are not efficient for heavy-duty transport with tight schedules. Hydrogen refueling stations are currently expensive to establish, costing $1-2m per station with a capacity of 500 kW to 1 MW. EV charging infrastructure is more modular, with Level 2 stations i.e. AC fast charging stations (6 kW to 20 kW) costing $2,000-$5,000 and fast-charging stations (25 kW to 350 kW) costing $50,000-$100,000.

Operational range and cost

Current hydrogen-based heavy-duty vehicles need to be refueled between 500-800 km, although prototypes such as the Toyota Kenworth T680 fuel cell truck have been produced with the capability of covering more than 1000 km. Hydrogen vehicles contain fuel tanks of 30-40 kg of hydrogen and are built to work under a pressure of up to 700 bar. The cost of hydrogen fuel is between $6- $10 per kg, meaning that the operating cost per kilometer is between $0.12 and $0.20 for a conventional heavy-duty truck. Medium and heavy-duty BEVs, like the Tesla Semi, based on battery capacity can drive 500-800 km using a battery with a maximum capacity of 1 MWh. In other countries, it costs $0.10 to $0.20 per kWh to charge the electricity, hence the operation cost of $0.10-$0.15 per km is comparatively higher than that of Nepal. According to a study by the NEA, the cost of operating electric vehicles in Nepal is 15-20 times lower than petrol vehicles: for electric cars, it is Re 0.7 paisa per kilometer, Re 0.8 for SUVs or jeeps, Re 0.9 for microbuses and Rs 1.2 for large buses.

The green aspect

Environmental aspects shape the complex relations between hydrogen and battery-electric vehicles. Hydrogen’s environmental impact hinges on its production method: green hydrogen, produced through the electrolysis of water using electricity from renewable sources, is a cleaner but comparatively expensive solution, while gray hydrogen produced from natural gas has a high CO2 output. Technologies like carbon capture and storage (CCS) have improved the blue hydrogen to fill this gap. A notable environmental advantage of hydrogen-powered vehicles is that their byproduct is just water vapor, and thus doesn’t emit any carbon into the atmosphere. Even though electricity used by BEVs can be from renewable sources, the two main environmental issues are associated with batteries. The exploitation of such strategic minerals such as lithium, cobalt and nickel brings with it questions on resource depletion as well as the impact on the environment. However, recycling or disposal of the batteries becomes a concern when the BEV batteries degrade over time—typically after about 10 years.

Hybrid model

Hybrid models combining hydrogen and battery technologies are emerging as a promising solution. These vehicles are driven by hydrogen fuel cells as the main power source and batteries that will be used for auxiliary/peak load. This approach enhances the efficiency of the features inherent in both technologies, including the range of operation and regenerative braking. For instance, the Honda CR-V e: FCEV incorporates hybrid systems to balance performance and efficiency that provide 29 miles of range via battery, adding to the 241 miles from the fuel cell. The hybrid model is more appropriate for developing countries like Nepal, where establishing extensive hydrogen refueling infrastructure is expensive and not feasible in all locations. Thus, by incorporating a battery as an extra power source, the hybrid model allows vehicles to cover the necessary range to reach refueling stations. Current trends are to further invest in R&D of lighter fuel cell systems and higher capacity batteries to cut costs and ease integration.

Conclusion

The heavy-duty vehicle registration in Nepal was about 18,500 units in 2023 and is projected to reach around 20,400 units by 2026. This highlights the potential for hydrogen and electric technologies to play a pivotal role in the decarbonization of the transportation industry. Heavy-duty transport may benefit from hydrogen or electric technologies but each has its strengths and weaknesses. Hydrogen has the highest energy density, fast refueling time, and longest-range satisfaction compared to battery electric vehicles, making it suitable for long-distance use. Nevertheless, hydrogen remains an immature technology, with the problem of expensive hydrogen production and the lack of refueling stations persisting.  These issues can be solved through strategic solutions such as government subsidies, incentives for green hydrogen production and policies to encourage private sector investment. BEVs are cheaper with regard to energy, require less maintenance and have a more extensive charging network. However, they have relatively less energy density, longer charging time and limited traveling distance, which are not suitable for commercial purposes for heavy-duty applications. That is why hybrid models are considered to be intermediate solutions that combine the possible benefits of both technologies. The choice ultimately depends on specific use cases, availability of infrastructure and regional energy policies. As the world continues to look for sustainable production of heavy-duty vehicles, both hydrogen and electric technologies are likely to coexist in the coming years as well.

Asia has been one of the world’s fastest-growing regions, and energy requirement is expected to increase by more than 50 percent until 2040, mainly driven by factors such as industrialization, urbanization and population growth. The general electricity generation dependency upon coal and thermal power in the region is 70 percent for India, over 80 percent for Bangladesh and 58 percent for Pakistan. Despite being a technologically advanced nation, 70 percent of Japan’s energy demand is fulfilled by fossil fuels whereas the numbers for South Korea and China are 80 percent and 60 percent, respectively. The Asian countries use about 0.5bn metric tons of coal annually, of which more than 1.5bn metric tons of CO2 are emitted from the power sector. This heavy reliance on fossil energy resources bears the social cost of extreme air pollution and greenhouse gas pollution. As industries like steel, cement, ammonia and others that release high levels of CO2 are expected to expand during the current decades, it is imperative to develop nontraditional energy sources in the region.

Green hydrogen is a clean, versatile energy carrier generated through water electrolysis using renewable electricity. In contrast to grey or blue hydrogen, which are derivatives of fossil fuels and their production emits greenhouse gases, green hydrogen is carbon-free. Its applications are manifold: from powering industry and transport to energy storage and a clean fuel source for power generation. For Asia whose energy mix is dominated by coal and natural gas, green hydrogen offers a pathway to decarbonize hard-to-abate sectors like steel, cement and heavy transport. It also aligns with the region’s commitments under the Paris Agreement to limit global warming.

The present energy scenario of Nepal shows a comfortable position with an installed hydropower potential of about 3,157 MW, while the total domestic demand is about 1,870 MW. Nepal’s estimated peak electricity demand looks much less at 10,500 MW by 2040 with an installed capacity of 40,000 MW. This excess renewable energy is a perfect opportunity for Nepal to focus on green hydrogen production since water electrolysis can be powered with surplus electricity. Green hydrogen can act as a carbon-neutral and exportable energy vector for meeting the energy transition needs of neighboring Asian countries. Since coal and thermal energy predominate in the countries within the region, exporting green hydrogen from Nepal could be helpful to countries like China, South Korea, Japan, India, Bangladesh and Pakistan to progress toward less carbon-intensive energy sources and, at the same time, spur regional cooperation and growth of the energy sector. 

India's rising demand for green hydrogen is a perfect opportunity for Nepal to become a major exporter of green hydrogen. Nepal, being a country abundant in hydroelectric power, could use the excess clean energy to generate green hydrogen to aid India in its decarbonization drive. Moreover, Nepal has the potential to export green hydrogen and its derivatives, such as ammonia, to India via pipelines, enabling further export to East Asian and South Asian markets. While green hydrogen may not currently be the most economically viable energy source, it stands out as one of the most environmentally-sustainable options, aligning with global decarbonization goals. Besides, the geographical location of Nepal, which is adjacent to India, and the ongoing prospects of energy exchange make the country an ideal supplier of green hydrogen. At the same time, this business may lead to the generation of thousands of employment opportunities in Nepal’s energy transportation and logistics sectors and contribute to diversification. Green hydrogen holds the promise of becoming the foundation of Nepal's new export economy in energy and, therefore, could become a long-term substitute for the two most volatile industries in Nepal—remittances and tourism.

A 2023 report by the World Bank estimated that if Nepal utilized 10 percent of its technically feasible hydropower for hydrogen production, it could produce 1.2m metric tons of green hydrogen annually, worth approximately $6bn at current market rates. Exporting hydrogen to India, Bangladesh and potentially China would create thousands of jobs throughout the supply chain of hydrogen production, storage, transport and logistics. For Nepal’s economy, which relies heavily on remittances and tourism, hydrogen could diversify revenue streams and reduce trade deficits.

The proximity of Nepal to the two significant energy consumers, India and China, places it at a logistical advantage in terms of green hydrogen exports. India’s National Hydrogen Energy Mission has targeted bringing down the price of green hydrogen to $1 per kilogram by 2030, creating massive demand for cheaper imports. And Nepal could be a key supplier. Also, hydrogen trade could be added to existing bilateral agreements such as the India-Nepal Power Trade Agreement (2014). Developing regional hydrogen corridors with shared infrastructure, such as pipelines and storage facilities, would reduce costs.

The government’s support is critical to making Nepal a green hydrogen hub. The Nepal Hydrogen Hub plan foresees the utilization of excess hydropower in the production of green hydrogen that can be utilized in Nepal’s economy in green cement and green steel industries, and the excess hydrogen can be exported as green ammonia or transported through pipelines to the Asian market. Setting up a green hydrogen plant for every hydropower project being developed in Nepal would be very costly. In response, the Nepal government should propose a plan to establish four strategic hydrogen hubs to centralize resources for cost efficiency based on the approximate area of hydropower stations. These hydrogen hubs, depending on their distances from either India or Bangladesh, could be used to export green hydrogen, hence providing Nepal with perfect regional markets. 

For that, the policymakers need to formulate a National Hydrogen Roadmap outlining the production target, export strategy and incentive for investment. Offering subsidies or tax breaks for producing green hydrogen and related infrastructures can attract domestic and foreign investments. Incentivizing public-private partnerships is critical for mobilizing large-scale capital and technical expertise. Green hydrogen aligns with Nepal’s commitments under the Paris Agreement to achieve net-zero emissions by 2045. Hydrogen can reduce air pollution, improve public health, and contribute to global climate goals by replacing fossil fuels. 

Developing robust export infrastructure, such as pipelines, storage systems and transportation networks, will ensure seamless movement to regional and international markets via shipments. This will not only strengthen the Nepali economy but also make it more self-reliant, rather than being dependent on remittances and taxes, which are unsustainable long-term economic solutions. Becoming a green hydrogen export hub will not only position Nepal as a leader in sustainable energy but also create massive employment opportunities and drive the development of green infrastructure to pave the way for long-term economic growth and environmental resilience. Besides, the export of green hydrogen will lower Nepal’s trade deficit by decreasing reliance on imports while creating new revenue streams. This transformation aligns with global efforts to decarbonize energy systems and presents Nepal with an opportunity to lead the region in renewable energy innovation and sustainability.

Space exploration has always been a boundary of human imagination, pushing the boundaries of technology and expanding our understanding of the universe. NASA and many other organizations have already carried out remarkable missions of landing on the Moon and exploring Mars with spacecraft. These efforts have significantly contributed to our knowledge of space but still, the concept of interplanetary travel and colonization remains a grand ambition. Elon Musk has taken a bold step toward realizing this dream through his company SpaceX. Musk is working on a new idea of transportation that envisions human travel from one planet to another. Starship is the latest development in this journey, designed to transport humans and cargo to Mars, the Moon and beyond.

Musk founded SpaceX in 2002 and from that date, it has already achieved several space milestones including the development of reusable rockets like the Falcon 9 and the first private spacecraft to deliver cargo to the International Space Station (ISS). These successes have paved the way for the development of the most powerful and advanced spacecraft ever built—Starship. SpaceX has launched several different versions of spacecraft before the development of Starship. The Dragon was the company’s first major spacecraft designed to transport cargo and crew to the ISS. With the development of Dragon 2, SpaceX solidified its position as a leader in the space industry as it was allowed for human spaceflight. With the development of Falco 9, a reusable rocket, the company marked a significant turning point in space exploration by drastically reducing the cost of launch. Starship is the result of all these earlier projects, which marked a major leap in terms of technology and scale. Unlike previous spacecraft, Starship is designed with interplanetary travel in mind, making it a key component of Musk’s vision for colonizing Mars.

The most advanced spacecraft SpaceX has developed to date, the Starship is designed to carry up to 100 passengers or 100 tons of cargo to various destinations in space. The spacecraft is made of stainless steel and carbon fiber.  The use of stainless steel is a significant shift from the lightweight aluminum-lithium alloys used in many traditional spacecraft, as it provides a better balance of strength, temperature resistance and cost-effectiveness and it can withstand the extreme conditions of space travel. The Starship consists of two stages: Stage 1 and Stage 2. The lower part responsible for providing the necessary thrust to launch the spacecraft into orbit is Stage 1, which is also known as Super Heavy booster. It measures 71 meters in height with 9 meters in diameter and is powered by 33 Raptor engines, which generate a total thrust of around 17m pounds (7,700 tons). In the past, boosters were expendable; after launch, they would fall into the sea and be destroyed. However, the Super Heavy booster is designed for reusability. It can return to the launch pad after separating from the spacecraft, allowing for rapid turnaround times and significantly lowering the cost of space travel. 

The upper part of the spacecraft responsible for carrying crew and cargo to their destination is Stage 2, which is the Starship itself. It is 50.3 meters tall with nine meters in diameter and has a payload capacity of 100 metric tons. It is equipped with six Raptor engines, which use liquid methane and liquid oxygen as propellants. This combination is chosen not only for its high performance but also because it can potentially be produced on Mars using the planet's natural resources. This capability is essential for long-term sustainability and the possibility of return missions.

The Starship program has undergone several test flights to date. The first test flight was a suborbital ‘hop’ in which the spacecraft ascended a few kilometers before landing back on Earth. Subsequent Starship flights reached higher altitudes and performed more intricate maneuvers, ultimately culminating in Flight 5. Executed on 13 Oct 2024, Starship Flight 5 marked a significant advancement in SpaceX’s mission to create a fully reusable rocket system, demonstrating major upgrades from its predecessors, such as a redesigned heat shield and enhanced landing mechanisms. The mission involved launching the Starship upper stage toward space, followed by a controlled return of the Super Heavy booster to the launch site. The booster executed a precise landing using ‘chopstick’ arms on the launch tower after separating at an altitude of approximately 74 km, showcasing a novel recovery technique that aims to significantly reduce the time and costs associated with rocket reuse. Starship is designed to achieve re-flight of its rocket booster ultimately within an hour after liftoff. The booster returns within ~5 minutes, so the remaining time is reloading propellant and placing a ship on top of the booster. 

SpaceX refined the design and improved the reliability of the spacecraft with the valuable data from each test. Starship's capabilities are not limited to Mars missions as it is intended for a variety of other roles, such as deploying satellites, transporting cargo to the Moon and even conducting intercontinental travel on Earth.  

As per Elon Musk, the cost of launching a rocket is around $60m. If the rocket is used only once, the entire capital investment is consumed in a single flight. However, if the rocket can be reused 1,000 times, the cost drops to just $60,000 per launch. This dramatically reduces the cost of spaceflight and can bring it closer to the cost of air travel in the near future.

Starship is another important step forward in human space exploration because Mars colonization becomes more realistic with it. The payload of the spacecraft is rather generous and, in addition, it can be refueled in orbit, which makes it possible to deliver everything necessary for the construction of a Martian settlement. Musk envisions a city on Mars with a population of one million people by the 2050s. This ambitious goal involves sending thousands of Starships to the Red Planet, transporting equipment, habitats and settlers in phases. The potential benefits of interplanetary colonization extend beyond survival. Mars could serve as a hub for scientific research, resource mining and even a launch point for future missions to the outer solar system. The Moon, too, could be a valuable destination. NASA’s Artemis program, which aims to return humans to the Moon, may use Starship as a lunar lander to transport astronauts and cargo to the lunar surface. With Earth estimated to be about 4.5bn years old and potentially facing environmental challenges that could threaten its habitability, finding an alternative home for humanity is becoming increasingly important. SpaceX’s vision for Starship is not just about exploration but about ensuring the continuation of human civilization.

Starship represents a monumental step forward in human spaceflight and interplanetary travel. Its advanced design, reusability and cost-effectiveness make it a game-changer in the space industry. SpaceX is advancing scientific knowledge and ensuring a future where humanity can thrive beyond Earth as it aims to establish a human presence on Mars and explore the Moon and other celestial bodies. As countries around the world look to space for new opportunities, the launch of NepaliSat-1 in 2019 stood as a symbolic moment, showcasing the country’s aspirations. Thus, considering Earth’s 4.5bn-year history and the potential environmental threats to its future, SpaceX’s Starship symbolizes a crucial step toward safeguarding the future of humanity beyond our planet.

Green hydrogen has turned out to be one of the primary solutions to global warming and climate change as it helps in the process of decarbonization and attaining carbon neutrality. Since green hydrogen can be produced using renewable energy sources, it is an opportunity to gradually decrease the dependence on fossil fuels, which will improve energy independence and energy security. To summarize, green hydrogen is a promising, clean fuel of the future in a world that is slowly moving toward cleaner energy systems. Thus, with the vision of shifting the energy sector to cleaner and sustainable sources, the idea of hydrogen production in Nepal was initially discussed in an academic research paper completed by Prof Bhakta Bahadur Ale of Tribhuvan University and Prof SO Bade Shrestha of Western Michigan University in 2008. They suggested that hydrogen should be produced through the use of electricity from hydroelectric plants when they are generating power during off-peak hours. During that time, Nepal was struggling with acute energy crises and frequent load-shedding, which, coupled with technological constraints, made it next to impossible to turn the concept into reality. 

When the Covid-19 pandemic started, the industrial sector contracted, leading to a significant drop in energy consumption, but fossil fuel imports remained high. This led to an overproduction of electricity particularly from the hydropower plants in Nepal. This excess electricity led to wastage and an imbalance between supply and demand; hence, it was crucial to look for methods to utilize this electricity in domestic sectors. This scenario was ideal for producing green hydrogen using the surplus electricity through the process of electrolysis. That is when the shift from a fossil fuel-dependent economy to a green economy began to take shape. Recognizing this potential, Kathmandu University decided to channel the excess energy into producing hydrogen by splitting water through electrolysis. With this goal in mind, the Green Hydrogen Lab (GHL) at Kathmandu University was established in 2020 under Prof Bhola Thapa and Biraj Singh Thapa, marking a major step forward in Nepal’s pursuit of renewable energy solutions.

Even though the strategy of generating hydrogen by utilizing the excess electricity from hydropower was discussed in 2008, it was only in 2020 that R&D on hydrogen production was initiated. In particular, the GHL has contributed to developing this vision. GHL started the Nepal Hydrogen Initiative (NHI), a consolidated program for establishing a policy foundation, hydrogen energy value chain, and developing action plans. Some of the ongoing projects at GHL are Nepal’s first hydrogen refueling station and the green urea production plant in Nepal. GHL has a 5-kW electrolyzer that can produce 2 kg of hydrogen per day, which is used to refuel a car with a 6 kg hydrogen capacity, providing a driving range of 600 km. GHL is also involved in different projects: green hydrogen for the production of ammonia, industrial heat, zero-emission transportation, re-electrification and making green steel. MIT Group Foundation and Global NRN Foundation, KU being a knowledge partner, organized the Nepal Green Hydrogen Summit in October 2022 with the main aim of prioritizing the delivery of climate-friendly green hydrogen projects that help achieve the Sustainable Development Goals (SDGs). Since 2023, the Global Green Growth Institute’s (GGGI) NP15 Green Hydrogen Value Chain and Green Ammonia Plant project has been exploring the potential of green hydrogen in Nepal's energy mix. Asian Development Bank (ADB) studied the prospects of Hydropower to Hydrogen in Nepal in 2020. The first hydrogen internal combustion engine conversion technology was demonstrated on 16 September 2024 at Pulchowk Engineering College, which embarked on another big step in the development of green hydrogen in Nepal. With the adoption of the Nepal Green Hydrogen Policy-2024, the country has set a more tangible framework for future study, innovation and funding of green hydrogen. This policy lays the groundwork for realizing Nepal’s immense opportunity in green hydrogen generation, mainly based on Nepal’s hydropower potential. 

Nepal’s roadmap for green hydrogen production can be significantly boosted by studying the policies, pilot projects, and commitments of global leaders in the hydrogen economy. Countries like Japan, India, China and the United States are driving the green hydrogen agenda, making substantial investments in technology, infrastructure, and research. These nations provide important lessons for Nepal in terms of policy formulation, industrial applications and the scaling of green hydrogen.

The Indian government approved the National Green Hydrogen Mission in 2023 to develop a green hydrogen production capacity of at least 5 MMT per annum. By 2050, it aims to replace 50m metric tonnes of gray hydrogen with green hydrogen, which could cut 50m tonnes of CO2 emissions annually. India is focusing on reducing the cost of hydrogen production to $1.5 per kg by 2030 through large-scale projects. 

The US National Clean Hydrogen Strategy and Roadmap-2023 align with the administration’s goals, including the aim to develop green hydrogen production capacity of 10 MMT by 2030, 20 MMT by 2040, and 50 MMT by 2050; 100 percent carbon pollution-free electricity by 2035 and net zero GHG emissions by no later than 2050. At the same time, the United States’ Department of Energy (DOE) has launched the “Hydrogen Shot” initiative to reduce the cost of clean hydrogen to $1 per kg within a decade. In March 2022, China’s Medium and Long-Term Strategy referred to as “the National Plan” was released for the development of the hydrogen energy industry after which there has been significant development in the country’s hydrogen space. Among these targets, the deployment of 50,000 fuel cell vehicles and the production of 0.1 to 0.2 MT of renewable hydrogen toward a broader goal of reducing annual CO2 emissions by 1m to 2m tons by 2025 was most important. China is focusing on reducing the cost of hydrogen production to $2.18/kg with advancements in technology and a reduction in electricity prices. Japan, another hydrogen pioneer, is equally ambitious. Japan was an early proponent of making hydrogen for decarbonization, publishing its first hydrogen strategy in 2017, and the substance continues to be a critical part of Japan’s strategy to decarbonize its economy and achieve carbon neutrality. Japan’s hydrogen strategy is central to its goal of becoming carbon-neutral by 2050, reducing CO2 emissions across power generation, transportation and industry. Japan aims to bring down the cost of hydrogen to $2.77 per kg by 2030 from the current cost of $9.24 per kg, largely through technological advancements and scaled up production. Japan also plans to produce 1.08 MMT of hydrogen annually by 2040, a target that Nepal can aspire to as it has the potential to develop its green hydrogen capabilities.

Green hydrogen, which is generated from electrolysis, is a huge opportunity for Nepal. The government is formulating directives to generate 28,500 MW of electricity by 2035, while the country’s internal electricity requirement is estimated to be around 7,000 MW. With a surplus power of approximately 20,000 MW, there is an opportunity to produce 400,000 kg of hydrogen (as 1 MWh of electricity generates 20 kg of H2). If this surplus electricity, costing Rs 6.70 per unit, is not utilized for either domestic consumption or export, the financial value would effectively be zero. The country could face an annual loss of Rs 1.173trn, but by using surplus electricity to produce green hydrogen and its derivatives, it can reduce fossil fuel imports, cutting down on import expenses and promoting clean energy use in industries. This excess capacity could be used to produce green hydrogen which will make hydrogen one of the cheapest and competitive fuels in the market. Thus, increasing the scale of economies and with the assistance of technology across the globe, the cost of producing green hydrogen is expected to be below $1 per kilogram by 2050, which will enhance the feasibility of green hydrogen production. For Nepal, this is a chance to completely change the energy paradigm from a fossil-based to a renewable hydrogen economy.

Nepal faces several challenges in developing a green hydrogen economy, including gaps in policy, underdeveloped technology and low market readiness. Domestic demand for hydrogen applications, like Fuel Cell Electric Vehicles (FCEVs), remains limited, while high production costs and a lack of infrastructure complicate commercialization efforts. Additionally, attracting investment is challenging due to the market's early-stage conditions. To overcome these obstacles, Nepal needs to concentrate on the formulation of sound, sustainable energy policies that incorporate green hydrogen in the country’s strategic plan. The government should fund pilot projects to demonstrate the viability of green hydrogen technologies while encouraging Public-Private Partnerships (PPPs) to invest in scaling up commercial projects. 

In addition, successful pilot projects will also help to attract foreign direct investment (FDI). The government should also encourage private companies to invest in the technology by providing them with subsidies, tax exemptions and reasonable power tariffs for electrolysis. By leveraging its abundant hydropower, Nepal also has the potential to export green hydrogen to neighboring countries like India and China, with supportive export policies and infrastructure development key to realizing this opportunity. Moreover, investment in research and development (R&D) will contribute toward bringing down the costs of producing hydrogen and enable Nepal to remain competitive in the global hydrogen market. The creation of a separate hydrogen authority and simplification of the licensing of hydrogen projects will help stimulate further development and increase the share of commercial-scale projects after successful pilot projects.

To bridge the gap between academia and industry, Kathmandu University (KU) has established the Academia-Industry Cooperation (AICKU) under the leadership of Vice-Chancellor Prof. Dr. Bhola Thapa. Recognizing the immense potential of a synergistic partnership between academia and industry, Dr. Thapa envisioned AICKU to address shared challenges and meet the evolving needs of both sectors. KU firmly believes that fostering collaboration with industry is key to driving innovation and solving real-world problems. The university’s motto, “From Campus to Community,” reflects its commitment to tackling unemployment, reducing student outflow, and promoting knowledge and skill transfer. Currently, AICKU identifies potential industry partners and develops strategies for collaboration through partnerships.

AICKU operates with the vision to "bridge the gap between academia and industry, enhancing research and development, and contributing to economic growth and social impact." Its mission is "to create collaborations that promote skill development, knowledge transfer, and employment opportunities." AICKU follows the GRID model, which stands for Grants, Research, Industry, and Dissemination. By securing grants from government and private sectors, AICKU facilitates KU’s research projects, focusing on solving real-world problems through strategic partnerships. The results of these projects are shared through seminars, conferences, and workshops, opening new avenues for funding, innovation, and knowledge transfer to benefit all stakeholders.

AICKU’s initiatives go beyond research and knowledge transfer, focusing on creating direct pathways for student and graduate engagement with industry. This includes providing jobs, internships, collaborative workshops, research and development (R&D), promoting startups, and fostering international collaborations.

Jobs and internships

AICKU partners with private companies to offer paid internships and job placements, providing students with practical experience while meeting industry needs. KU’s Employment Promotion Program has already placed 30 recent graduates, with a target of offering opportunities to 80 graduates annually. A KU Employment Promotion Committee ensures adherence to employment guidelines, ensuring that top students receive job opportunities even in a challenging job market. This initiative not only benefits students but also enhances the overall societal progress by connecting academic knowledge with industry expertise.

Collaborative workshops

AICKU has been proactive in organizing collaborative workshops and events to bring together key stakeholders. The first Academia-Industry Meet 2023, held on December 29, brought leaders from academia, industry, and government together to discuss industrial development and economic progress in Nepal. Other successful events include the Academia-Industry Workshop in collaboration with Energize Nepal, held across all provinces to align R&D efforts with industry priorities. Additionally, the Brain Drain vs. Gain Symposium united experts to address the challenges of brain drain and youth retention, while Yuwa: A Talk Show inspired youth engagement through transformative discussions. A recent seminar titled Nepal-Japan Collaboration for Environmental Sustainability, Earthquake Resilience, and Youth Empowerment further showcased AICKU’s efforts to confront pressing challenges in collaboration with Japan's Tiger Mov, Inc.

Research and development

KU’s ultimate goal is to conduct groundbreaking research that leads to practical solutions, internships that shape future careers, and projects that bridge the gap between theory and application. AICKU serves as a common platform for KU’s schools, departments, and industries to collaborate on research and academic activities. Current initiatives include the Mental Health Research Centre, Hematology and Oncology Research Centre, and Multi-Disciplinary Diabetic Research Centre, all of which are contributing to advancements in health technology and medical research. These efforts highlight the potential for academia and industry collaboration to foster national development.

Startups and entrepreneurship promotion

KU’s Business Incubation Centre (KUBIC) has already supported over 20 companies producing innovative, community-focused products. KUBIC has also trained more than 179 individuals and supported 22 researchers. This initiative is part of KU’s broader strategy to promote startups and entrepreneurship, further strengthening academia-industry ties.

International collaboration

In addition to national partnerships, AICKU has established international collaborations. Notable partnerships include those with ASHA NPO Japan to develop a digital medical records app for Nepal’s healthcare system, and with Colorbath NPO Japan to work on energy sector projects. AICKU also facilitated a partnership between KU and Thrangu Vajrayana Buddhist Center in Hong Kong, resulting in the construction of the Thrangu Rinpoche Academia Industry Block at KU, a testament to both institutions’ commitment to fostering a collaborative environment for academia and industry.

Kathmandu University’s efforts to foster academia-industry collaboration represent a significant milestone in Nepal’s educational and industrial landscape. Through robust partnerships, student opportunities, and research aligned with industry needs, KU is paving the way for a brighter future. As these collaborations continue to flourish, they promise to not only enhance individual success but also drive societal and economic progress, contributing to nation-building and sustainable development. AICKU stands as a beacon of KU’s commitment to bridging the gap between theoretical knowledge and practical application, with the vision of creating a self-sufficient nation where education and industry work hand in hand to achieve lasting impact.

Climate change, fueled by our relentless pursuit of prosperity and industrial development, demands our immediate attention and action. The alarming rate of unanticipated environmental disasters in recent years and projections of natural calamities induced by climate change pose a serious threat to the entire ecological system. In recent times, climate change, the greenhouse effect, and carbon emissions have become hot topics worldwide. To tackle the problem of global greenhouse gas emissions, the world has collectively decided to transition from fossil fuels to renewable energy sources. This monumental decision, aimed at reducing carbon emissions to net zero by 2050, represents the most significant global commitment humanity has ever made. Since over 73 percent of global emissions stem from energy-related activities, industries like transportation, iron and steel production, and cement manufacturing contribute significantly to global emissions.  The challenge before us is clear: How do we continue to develop without further harming our planet? The answer lies in transitioning from fossil fuels to renewable energy sources. We are fortunate to have abundant renewable resources like solar, wind and hydropower. However, integrating these renewable energies into our daily lives and industries requires innovation and commitment.

This is where hydrogen energy comes into play. Hydrogen, produced by breaking down water using renewable energy, can revolutionize our energy systems. It has the potential to produce electricity, power vehicles, create synthetic fuels, and support industrial processes like ammonia production and metal refining. Hydrogen can decarbonize our economy by reducing emissions across various sectors, from transportation to heavy industry. Hydrogen being the most abundant chemical element, estimated to contribute 75 percent of the mass of the universe, possesses significant energy values, with a lower heating value (LHV) of 120 MJ/kg and a higher heating value (HHV) of 142 MJ/kg. The energy density of hydrogen gas at 0°C and 1 atm is 0.01079 MJ/L, whereas in its liquid form at -253°C, it has an energy density of 8.5 MJ/L.

Types of hydrogen

There are different types of hydrogen, each with its advantages and challenges:

Gray hydrogen: Produced from natural gas or methane using a steam methane reforming (SMR) process without capturing the carbon emitted in the process. For every kilogram of hydrogen produced using SMR, around 9-12 kilograms of CO2 is emitted.

Blue hydrogen: Similar to gray hydrogen but includes carbon capture and storage (CCS).

Green hydrogen: Produced using renewable energy sources, such as solar or wind power, through electrolysis.

Other types include:

Turquoise hydrogen: Produced using methane pyrolysis.

Yellow hydrogen: Produced using electrolysis powered by solar energy.

Pink hydrogen: Produced using electrolysis powered by nuclear energy.

Black hydrogen: Produced using coal gasification.

Green hydrogen is the most sustainable source of hydrogen. Though the production process is currently more expensive than gray or blue hydrogen, it requires significant investment in renewable energy infrastructure. It is estimated that producing 1 kg of hydrogen costs around $8-10, consuming 55 kWh of electricity and nine liters of water. With technological advancements, the hydrogen production cost is expected to fall to $1 per kg by 2030. Nepal, with its vast hydropower potential, has a golden opportunity to produce green hydrogen cost-effectively. There are different types of hydrogen available, each with its advantages and challenges.

Key equipment

The most crucial equipment in the green hydrogen technology value chain are electrolyzers and fuel cells, which encompass the major portion of the capital.

Electrolyzers: Devices that use electricity to split water into hydrogen and oxygen. Types include Proton Exchange Membrane (PEM), Alkaline, and Solid Oxide Electrolyzers. The efficiency of an Alkaline electrolyzer ranges from 50-70 percent, PEM is about 70-80 percent, and SOE is 80-90 percent.

Fuel cells: Electrochemical devices that convert the chemical energy from a fuel into electricity. Common types include PEM fuel cells, Solid Oxide Fuel Cells (SOFCs) and Alkaline Fuel Cells (AFCs).

Hydro tech: Global scenarios

Globally, scientists, researchers and industries are embracing hydrogen as a solution. Countries like the UK, Norway and Sri Lanka have developed national hydrogen roadmaps. Major oil-producing countries are investing heavily in hydrogen production, aiming to transition their economies away from fossil fuels. For example, India has launched a National Hydrogen Mission to achieve energy independence and reduce its carbon footprint.

According to various reports, global investments in hydrogen technology are projected to reach hundreds of billions of dollars by 2030. The US Department of Energy (DOE) has outlined the US National Clean Hydrogen Strategy and Roadmap (2023), aiming to reduce the cost of clean hydrogen to $2/kg by 2025 and $1/kg by 2030. On 5 Nov 2021, the US House of Representatives passed the Bipartisan Infrastructure Bill (BIB), which includes $9.5bn in support for hydrogen, with $8bn allocated to establish seven regional hydrogen hubs.

The European Union alone has committed around $550bn by 2050 in hydrogen technologies as part of its Green Deal. The EU’s Hydrogen Strategy aims to install at least 40 GW of renewable hydrogen electrolyzers by 2030. The Chinese central government has set ambitious targets, including a production target of 100,000 to 200,000 tons of renewable hydrogen per year by 2025, and 10m tons by 2030, with an additional 10m tons imported. Its 14th Five-Year Plan emphasizes the development of hydrogen energy, with goals to deploy 50,000 fuel cell vehicles and establish 1,000 hydrogen refueling stations by 2025.

Japan has adopted a Basic Hydrogen Strategy, aiming to establish a hydrogen society by 2050. The country has set targets to deploy 200,000 fuel cell vehicles and 320 hydrogen refueling stations by 2025. Meanwhile, India launched the National Green Hydrogen Mission on 4 Jan 2023, positioning the country as a major hub for hydrogen production, export and manufacturing. The central government has authorized a budget of InRs 197.44bn for this mission.

Saudi Arabia is also making significant strides with its National Hydrogen Strategy, developing a $5bn green hydrogen plant in the city of Neom. This project, one of the world’s largest green hydrogen initiatives, aims to produce 650 tons of green hydrogen daily by 2025 using renewable energy sources like wind and solar power.

Oman is actively engaged in hydrogen technology through its Hydrom project. The country has awarded $11bn to two new green hydrogen projects, aiming to bring the total hydrogen production in Oman to 1.38m tons per year by 2030.

These global efforts underscore the growing commitment to hydrogen technology as a key component in the transition to renewable energy and the reduction of carbon emissions worldwide.

Nepal’s green hydrogen journey

Nepal is uniquely positioned to become a leader in hydrogen energy. Our abundant hydropower resources provide us with the capacity to produce some of the world's cheapest hydrogen. With glacial meltwater and high hydropower potential, we can leverage these resources to transition toward a green hydrogen economy.

Nepal joined this journey in 2008 when Tribhuvan University and Western Michigan University jointly performed an official study on Hydropower to Hydrogen energy in Nepal. Later, in 2020, the Green Hydrogen Lab was established at Kathmandu University under the vision of Prof Dr Bhola Thapa and the leadership of Dr Biraj Singh Thapa. Since then, Green Hydrogen Lab has launched the Nepal Hydrogen Initiative (NHI) and has been actively performing research on Hydrogen Production, storage and end-use. Notable projects include Nepal’s first hydrogen refueling station and feasibility studies for green urea production. Besides this, the lab is currently working on different application areas in the green hydrogen value chain such as Synthetic Natural Gas, Green Steel and Cement Production, Heavy Vehicles, Ammonia and Urea Production, Wet to dry season energy variation balance, etc. The team is committed to innovative research in collaboration with various Norwegian, German and US-based universities. Currently, 22 researchers are working in the research laboratory on various topics out of which five are PhD candidates and three are Master by Research Candidates.

Nepal has significant potential for hydrogen usage in transportation, mining and steel production, urea and ammonia production, and addressing seasonal energy variation. Recognizing this potential, a business concept called Hydrogen Hubs in Nepal has been developed. This concept outlines the methods through which Nepal can engage in hydrogen business with its neighboring countries.

The efforts of the Green Hydrogen Lab team were instrumental in drafting the Green Hydrogen Policy for Nepal. As a result, the Government of Nepal approved the ‘Nepal Green Hydrogen Policy 2024’. This landmark policy has opened the door for hydrogen research and investment, motivating stakeholders actively engaged in this field.

Prospects and challenges

With immense hydropower potential estimated at around 43,000 MW, Nepal stands on the brink of a significant opportunity in green hydrogen technology. In the next decade, the country aims to generate 28,500 MW of electricity. Despite this abundance of renewable possibilities, only a little more than 5 or six percent of Nepal’s primary energy supply comes from electricity, while more than 90 percent is non-electricity based. Our reliance on coal and fossil fuels is increasing, highlighting the urgent need for a shift to renewables. Currently, Nepal’s installed capacity exceeds 3,300 MW, surpassing domestic consumption and highlighting the need for hydrogen as an energy carrier to balance the country’s energy scenario and replace fossil fuels. Nepal’s annual demand for urea is estimated at 800,000 MT, and the country imports fossil fuels worth over Rs 300bn. Green hydrogen has the potential to replace this consumption, filling the current energy gap.

The recent approval of the Nepal Green Hydrogen Policy 2024 has paved the way for further research and development in green hydrogen, harnessing Nepal’s potential in this field. The journey toward a hydrogen economy will require more political commitment, strategic investments, and international collaboration. Joint efforts from academia, government and industry are essential to develop these prospects into business opportunities, enabling energy trade with neighboring countries like India and China. This will not only enhance Nepal’s economy and generate employment opportunities but also move the country toward energy balance and independence.

Academia-industry cooperation is the symbiotic relationship between academic institutions (academia) and the industrial sector (industry) through collaborative efforts and partnerships. The shared knowledge and expertise accessed through such cooperation can bridge the gap between theoretical knowledge acquired in academic settings and the practical applications of industries. Together, academic institutions and industries can co-create solutions to overcome pressing challenges by fostering partnerships and embracing best practices.

Academia-industry collaboration holds immense potential for driving innovation, economic growth and sustainable development. Industries continue to resort to private consulting firms that charge hefty amounts for advice or services in specialized areas. The collaboration between academia and industry would facilitate a mutual relationship, wherein industries seek consultation from experts in academia to leverage their knowledge and skills. Consequently, academic institutions and industries can co-create solutions to address the country’s pressing socio-economic and environmental challenges by overcoming challenges, fostering partnerships, and embracing best practices. Simultaneously, it eliminates the necessity for students to seek employment abroad because such collaborations hold the potential to generate employment opportunities domestically.

Different models and approaches to foster collaboration between academia and industry have been adopted across the globe. Distinguished companies like General Electric, Rolls-Royce, Siemens and IBM have collaborated with universities for years. Toyota’s research institute collaborates with Stanford University’s Artificial Intelligence Lab to advance research in artificial intelligence and automotive safety. Inside the University of Cincinnati Innovation Hub, Procter & Gamble has launched a Digital Accelerator. Beyond simulation, the facility is applied to solve business challenges. Many students have gained full-time employment at P&G following their time working at the Digital Accelerator. Companies like Amazon, Facebook and Google have also ventured into this domain and started collaborating with academic institutions around the world.

Industries drive the economy and industrial development drives economic prosperity. With the industrial sector contributing a mere 14.29 percent to GDP, Nepal’s economy is facing major headwinds. The projected growth rate is only 4.1 percent in 2023, down from 5.8 percent last year, the situation is critical. A high unemployment rate (19 percent) and a staggering student outflow (21.6 percent) paint a grim picture. Capital outflow worth Rs 47.35bn owing to Nepali students going abroad to pursue foreign education has already been recorded in the first five months of the current fiscal (2023-24). This exodus of students seeking education abroad is largely driven by the fear of limited job opportunities back home. Nepal needs a collaborative effort to address these interconnected issues to create a larger labor market. Only through such collaborative efforts can Nepal hope to navigate its current economic challenges.

Despite the potential benefits, academia-industry collaboration in Nepal faces challenges that hinder effective partnership-building and knowledge exchange. Kathmandu University has pioneered this initiative with the motto of taking knowledge and skills “from the campus to the community” by establishing the “Academia Industry Cooperation” at Kathmandu University (AICKU) under the esteemed office of the Vice-chancellor to bridge the gap between university and industry. AICKU identifies potential industry partners and establishes strategies for collaborations through joint research projects, conferences, and meetings. It also facilitates the mechanism for technology transfer, licensing and commercialization of research output.  Recently, AICKU successfully conducted “Academia Industry Meet 2023” where stakeholders from academia, industry and government sectors came under the same roof and discussed current challenges followed by possible solutions. Additionally, Kathmandu University has started a KU Employment Promotion Program to provide job opportunities to 80 top graduates per year and equip them with skills to compete in the global market. AICKU has also signed agreements with different industries to provide internships and job opportunities to students of the university. Recently, it facilitated the different research centers and labs of KU for the following projects.

• “Pilot Scale Green Ammonia Production in Nepal for Contribution to Domestic Economy and Better Utilization of Hydropower Electricity” with the Nepal Electricity Authority.

• “Feasibility Study of Green Urea Plant in Nepal” with the Ministry of Agriculture and Livestock.

• “Condition Monitoring of Hydropower Plants in Nepal” with Nepal Electricity Authority.

Looking ahead, AICKU plans to establish mechanisms for technology transfer, licensing, and commercialization of research outputs. Collaboration with the Business Incubation Center for the promotion of entrepreneurial ideas of students, faculties and researchers is well underway. With its long-term goal to foster a seamless transition from academia to the workforce, AICKU is emerging as a beacon of collaboration, laying the foundation for mutually beneficial relationships between academia and industry to shape a prosperous future for Nepal.

Despite these efforts of KU, a joint effort through other universities as well as stakeholders is needed to achieve the aim of enhanced synergy. There are many hurdles in the path such as limited research funding for the university, regulatory and administrative issues due to complex bureaucratic procedures and outdated regulations, differences in priorities, timelines, and expectations between involved stakeholders, limited technical expertise, infrastructures and research facilities, and institutional barriers. A new initiation is essential to combat the difficulties and fulfill the objectives of academia-industry collaborations. At first, policy reforms are essential from the government level to promote academia-industry collaboration, innovation, and technology commercialization. Through collaborative efforts, Nepal can not only harness its full potential to build a prosperous and resilient future for its people, but also solve the problems of youth retention and unemployment.

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