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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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