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Nepal has placed green hydrogen development among its national priorities as it takes a new strategic step toward clean energy transition and green industrialization. The government has announced budget allocation for the construction of a 2.5 MW pilot project in Hetauda to initiate commercial production of green hydrogen in the upcoming fiscal year 2026/27.

On the occasion of World Environment Day, the Alternative Energy Promotion Centre (AEPC) organized a “National Review Workshop on Initiatives for Green Hydrogen Development in Nepal” in Kathmandu on Friday. The event brought together government officials, energy experts, development partners, academic institutions, and private sector representatives to discuss the prospects, challenges, and strategies for integrating green hydrogen into Nepal’s energy future.

Inaugurating the workshop, Energy, Water Resources and Irrigation Minister Biraj Bhakta Shrestha stated that policy measures aimed at expanding renewable energy, promoting hydropower development, and advancing clean energy transition have helped establish green hydrogen as an important component of Nepal’s national energy system.

Minister Shrestha noted that green hydrogen is increasingly being recognized worldwide as a clean energy carrier capable of decarbonizing industries, energy storage systems, and the transportation sector. He emphasized that Nepal should prioritize its development to strengthen energy security, enhance industrial competitiveness, and fulfill its international climate commitments.

“Green hHe informed participants that the government has already approved and begun implementing the Green Hydrogen Policy, 2023, and that funding has been secured through the upcoming fiscal year’s budget to advance a pilot project as the initial phase of commercial production.

Minister Shrestha also noted that the government is preparing a separate law on renewable energy and energy efficiency, with the goal of having the bill passed during the current session of Parliament.

According to him, once the new legislation comes into effect, institutional restructuring will be carried out to enable the integrated management of renewable energy and energy-efficiency initiatives, providing a stronger legal and regulatory framework for the sector’s development.

Chairing the program, Energy Ministry Secretary Chiranjibi Chataut stated that green hydrogen development in Nepal is primarily driven by the strategic goals of utilizing hydropower resources, strengthening energy security, reducing fossil fuel imports, and achieving climate targets.

He emphasized that Nepal’s vast hydropower potential offers an opportunity to convert surplus electricity into high-value clean fuel.

“Nepal will have surplus electricity in the future,” Secretary Chataut said. “Rather than allowing that energy to go unused, converting it into high-value clean fuel through green hydrogen presents a significant long-term strategic opportunity.”

He added that the government has consistently prioritized green hydrogen in its long-term policies, development plans, and energy roadmaps.

Speaking at the workshop, AEPC Executive Director Navaraj Dhakal said the event was organized to review Nepal’s progress in green hydrogen development, facilitate knowledge-sharing among stakeholders, identify investment priorities, and strengthen collaboration.

Dhakal noted that AEPC, in partnership with Kathmandu University, established a Green Hydrogen Laboratory in fiscal year 2020/21, and initiated preliminary research activities.

According to him, the Centre is currently working with development partners, academic and research institutions, and local governments to conduct studies aimed at identifying potential green hydrogen projects across the country.

Dhakal further explained that the Energy Development Roadmap and Action Plan, 2024 envisions the use of green hydrogen to promote the chemical fertilizer industry, accelerate the clean energy transition, and support green industrialization.

“Globally, green hydrogen is emerging as a key instrument for energy transition and achieving net-zero emission targets,” Dhakal said. “Nepal should prioritize the development of technical standards, safety systems, pilot projects, and research to advance this sector.”

During the workshop, AEPC Deputy Executive Director Dr. Narayan Prasad Adhikari delivered a technical presentation on the concept of green hydrogen, global best practices, international investment trends, and Nepal’s potential development roadmap.ydrogen is not merely an alternative source of energy; it is closely linked to the future industrial and energy economy,” Minister Shrestha said. “Nepal must move forward not only in producing clean energy but also in utilizing it and creating value from it.”

He informed participants that the government has already approved and begun implementing the Green Hydrogen Policy, 2023, and that funding has been secured through the upcoming fiscal year’s budget to advance a pilot project as the initial phase of commercial production.

Minister Shrestha also noted that the government is preparing a separate law on renewable energy and energy efficiency, with the goal of having the bill passed during the current session of Parliament.

According to him, once the new legislation comes into effect, institutional restructuring will be carried out to enable the integrated management of renewable energy and energy-efficiency initiatives, providing a stronger legal and regulatory framework for the sector’s development.

Chairing the program, Energy Ministry Secretary Chiranjibi Chataut stated that green hydrogen development in Nepal is primarily driven by the strategic goals of utilizing hydropower resources, strengthening energy security, reducing fossil fuel imports, and achieving climate targets.

He emphasized that Nepal’s vast hydropower potential offers an opportunity to convert surplus electricity into high-value clean fuel.

“Nepal will have surplus electricity in the future,” Secretary Chataut said. “Rather than allowing that energy to go unused, converting it into high-value clean fuel through green hydrogen presents a significant long-term strategic opportunity.”

He added that the government has consistently prioritized green hydrogen in its long-term policies, development plans, and energy roadmaps.

Speaking at the workshop, AEPC Executive Director Navaraj Dhakal said the event was organized to review Nepal’s progress in green hydrogen development, facilitate knowledge-sharing among stakeholders, identify investment priorities, and strengthen collaboration.

Dhakal noted that AEPC, in partnership with Kathmandu University, established a Green Hydrogen Laboratory in fiscal year 2020/21, and initiated preliminary research activities.

According to him, the Centre is currently working with development partners, academic and research institutions, and local governments to conduct studies aimed at identifying potential green hydrogen projects across the country.

Dhakal further explained that the Energy Development Roadmap and Action Plan, 2024 envisions the use of green hydrogen to promote the chemical fertilizer industry, accelerate the clean energy transition, and support green industrialization.

“Globally, green hydrogen is emerging as a key instrument for energy transition and achieving net-zero emission targets,” Dhakal said. “Nepal should prioritize the development of technical standards, safety systems, pilot projects, and research to advance this sector.”

During the workshop, AEPC Deputy Executive Director Dr. Narayan Prasad Adhikari delivered a technical presentation on the concept of green hydrogen, global best practices, international investment trends, and Nepal’s potential development roadmap.

He stated that Nepal has significant potential to utilize surplus hydropower-generated electricity for green hydrogen production, which could then be used for energy storage, transportation, industrial applications, and fertilizer production.

During the second session of the workshop, representatives from government agencies, the private sector, development partners, and research institutions delivered presentations on ongoing initiatives, potential investments, and future strategies for green hydrogen development in Nepal.

Representatives from organizations including the Water and Energy Commission Secretariat, Nepal Electricity Authority, Nepal Oil Corporation, Asian Development Bank, World Bank, Global Green Growth Institute, Tribhuvan University, and Butwal Power Company shared information on studies conducted to date, potential projects, and their future plans related to green hydrogen.

The technical session of the workshop was chaired by Sandip Kumar Dev, Joint Secretary at the Ministry of Energy.

According to the workshop conclusions, stakeholders agreed on a common roadmap aligned with the Green Hydrogen Policy, 2023. The roadmap emphasizes expanding research and development, implementing pilot projects, establishing technical and safety standards, developing skilled human resources, and mobilizing international climate finance to support large-scale green hydrogen projects.

The workshop also concluded that efforts should focus on improving the financial viability of green hydrogen, accelerating its commercialization, expanding private-sector participation, and strengthening collaboration among key stakeholders.

As Nepal pursues its vision of becoming both an energy exporter and a clean energy-based industrial economy over the coming decade, green hydrogen is increasingly being viewed as a strategic sector for energy transition, energy storage, clean fuel production, and the development of a green economy.

Jalasarokar