Nepal’s journey toward a green hydrogen economy
Hydrogen, produced by breaking down water, can revolutionize our energy systems
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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.
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