Nepal’s Green Hydrogen Efforts Gain Momentum as Expert Details Pilot Projects, Costs, and Future Potential

Lately, the debate on green hydrogen in Nepal has gained significant momentum. Kathmandu University has imported hydrogen-powered vehicles for testing and is continuously researching it. Similarly, the Nepal Energy Foundation has successfully carried out cooking tests using green hydrogen produced from the Giringdi River small hydropower project in Badigad Rural Municipality, Baglung. In Pyuthan, the Butwal Power Company has also advanced work on hydrogen production at the Jhimruk Hydropower Project.

These developments suggest strong potential for green hydrogen in Nepal. But how can it be technically and commercially utilized? What do existing studies and research indicate so far? To explore these questions, TechPana’s Arjun Pokhrel spoke in detail with energy expert Sher Singh Bhat, who played a key role in the pilot green hydrogen project at the Giringdi River Small Hydropower Project in Baglung. The interview covers his post-retirement journey from the Nepal Electricity Authority, the green hydrogen production process, its risks, costs, and policy requirements.

We often heard about Sher Singh Bhat, the former head of the Load Dispatch Center (LDC). After retiring from the Nepal Electricity Authority, how did you end up being involved in this project?

Thank you. It has been nearly 10 years since I retired from the Electricity Authority. After retirement, I worked for about five years in a subsidiary of Butwal Power Company. That was a regular job. But at 65, I started thinking—how long can I continue carrying routine executive responsibilities? I decided to step away from that and instead focus on community-level advocacy and research.

During that time, I became involved with a non-profit organization called the Nepal Energy Foundation. While working on its research and advocacy activities, the green hydrogen project emerged as one of its pilot initiatives, and that is how I joined the project.

You tested using green hydrogen gas extracted from the small hydropower plant at Giringdi Khola in Baglung for cooking. Can you explain it simply so it's easy to understand? Essentially, what is this green hydrogen and how is it produced?

Hydrogen is not a new thing. Its use dates back nearly 200 years, around the 1800s. In Europe, it was initially used as town gas for street lighting and later for producing ammonia in fertilizer manufacturing.

In Nepal as well, hydrogen has been used indirectly. For instance, the fat-like substance found in instant noodle packets is produced through hydrogenation of oil. Hydrogen is also used in making vegetable ghee. You may have heard of Hetauda’s ‘Shanti Ghiu’, made from chiuri, which also requires hydrogenation.

Now, the difference between hydrogen and green hydrogen lies in emissions. If hydrogen production involves carbon emissions—either from raw materials or the production process—it is not green hydrogen. For example, hydrogen produced using electricity from coal is not green. Hydrogen produced using electricity or processes that do not emit carbon is called green hydrogen. Since we use hydropower-based electricity, our product is classified as green hydrogen. Broadly, hydrogen is categorized into green, grey, and pink (nuclear-based) hydrogen.

How is this hydrogen produced in a hydropower project?

To produce hydrogen, two key inputs are required: water and electricity. Water consists of hydrogen and oxygen. When electricity is passed through water in an electrolysis system, it splits into hydrogen and oxygen. The hydrogen is collected as gas, while oxygen can also be captured and used commercially as a by-product.

What makes this particularly practical in our case is the availability of both water and electricity at river sites. Earlier, before national grid expansion, thousands of micro-hydropower plants with a combined capacity of nearly 40 MW were built across the country. However, since they were not connected to the grid, they only provided limited evening lighting, and most electricity remained unused for the rest of the day. Our goal is to utilize this surplus electricity to produce hydrogen through small-scale units and enable local cooking, thereby reducing dependence on imported LPG.

Could you briefly explain the pilot project you carried out at the Giringdi River in Baglung—how long it took, what the cost was, and how the testing was conducted?

As we moved forward with this concept, the main challenge was safety, because hydrogen is highly flammable. It had to be used for cooking in a way that is as safe as LPG. However, hydrogen cannot be used in a standard LPG stove.

Another challenge is that hydrogen burns with a completely colorless flame, making it invisible to the naked eye. This creates both safety and usability concerns, as users cannot visually confirm whether the flame is on. Therefore, we first had to design a specialized stove capable of safely regulating hydrogen combustion and making the flame visible.

Initially, hydrogen stoves were imported from countries like Switzerland. But we decided to design and fabricate them in Nepal to keep costs within the country. Today, only the burner is imported; the rest is locally manufactured.

After developing the stove, we tested it at the hydrogen lab of Kathmandu University. At that time, we had not yet produced hydrogen ourselves, so we used commercially available hydrogen cylinders. The stove performed successfully, allowing flame control and stable combustion. We even boiled water and cooked instant noodles, which were then consumed by the test team, giving us full confidence in its functionality.

After that, we took the system to the field. However, laboratory success alone does not convince communities. So, before installing the plant, we brought hydrogen cylinders and conducted a live demonstration with around 60–70 residents. They themselves lit the stove and cooked food. After experiencing it firsthand, they became convinced of its safety and usefulness.

Following community acceptance, we installed a 5-kilowatt pilot plant. Currently, we use a cascade system of eight cylinders where gas is filled simultaneously, and one cylinder can be used for cooking. Since the system has not yet been commercialized, it is currently used only by micro-hydro staff, not the general community or market.

Does using this gas cause smoke, smell, or any other effect?

No, it produces neither smoke nor smell.

Now let's talk about safety and risks. Hydrogen is considered to be a bit dangerous. Can you clarify the risks?

That is a valid concern. Any substance can be dangerous if not handled properly. During an event in Pokhara attended by then Finance Minister Bishnu Paudel and the local mayor, a balloon incident occurred. The balloon had been filled with hydrogen instead of helium or neon, and it burst when exposed to a flame. That was not a failure of hydrogen itself, but of improper handling.

The incident did create fear and temporarily slowed our work. But every technology has gone through similar phases. When LPG was introduced, people kept cylinders outside and lit stoves from a distance due to fear. Even electricity was initially tested cautiously during the Rana era.

So, nothing is entirely risk-free. Even LPG and electricity cause accidents today. The key is strict adherence to safety standards. If proper procedures are followed, risks can be minimized significantly.

Some people say that a country like Nepal, which suffers every year from a shortage of urea fertilizer, should use green hydrogen in fertilizer factories and large industries, not in small household stoves.

For Nepal, which imports large quantities of urea fertilizer annually, the most important application of hydrogen is indeed in fertilizer production. The second major use is in heavy transport such as trucks and long-distance buses, where batteries alone are not sufficient. Hydrogen also has broader industrial applications.

However, our reason for testing it in cooking was Nepal’s seasonal electricity imbalance. This experiment is aimed at exploring ways to utilize surplus monsoon electricity and reduce transmission and distribution costs.

Has this been used as a cooking stove in any other country in the world?

No, it has not been used for cooking anywhere else in the world. While Europe is more advanced technologically, its energy systems do not face the same seasonal imbalance. Additionally, their cooking culture relies more on electric appliances like ovens and air fryers.

In Nepal, however, cooking often requires high heat and strong visible flames, especially for traditional dishes like dhindo—something induction stoves struggle to provide. Many households also prefer LPG because of its visible flame and ease of control. Even though induction stoves have been distributed widely, adoption remains limited. Hydrogen, with a flame similar to LPG, could therefore be a practical alternative.

I have heard a rumor that storing hydrogen gas for a long time reduces its quantity and quality. Is this true?

Hydrogen is a gas that does not exist freely in nature; it reacts easily with other elements. That is why there is a misconception that it cannot be stored. However, this is not entirely accurate.

Commercial hydrogen cylinders used in industries are often stored for extended periods without issue. In fact, hydrogen is routinely stored in food and industrial applications such as ghiu processing and instant noodle manufacturing. In our own testing, we also used stored cylinders. For cooking purposes, storage for a season or two does not create significant technical problems.

You tested it in small hydropower plants. How do you see its potential in larger hydro projects? Does the geographical location affect it?

We chose micro-hydro mainly to avoid transportation and storage challenges. Since production happens at the village level, cylinders can be easily exchanged every 7 to 15 days.

If hydrogen were produced at large-scale hydropower plants, it would still need to be transported to cities using costly logistics similar to LPG. For urban use, it is more practical to produce hydrogen near consumption centers like Kathmandu rather than at river sites.

You mentioned changing the cylinder every 7 to 15 days. But in our house, a small LPG cylinder easily lasts 2-3 months for a small family, so why does hydrogen need to be replaced so quickly?

There is a technical reason for this. Hydrogen is an extremely light gas. LPG cylinders are designed to hold about 14.2 kg of gas at around 5 bar pressure.

However, if the same cylinder is filled with hydrogen at that pressure, it would only store about 10 grams—insufficient even for a single meal. Increasing storage requires much higher pressure and stronger cylinders, which increases cost and reduces portability. This is why hydrogen cylinders need to be replaced more frequently, typically every 15 days.

Looking at consumer habits, prices, and geography, is this really feasible and practical in the long run?

To assess feasibility, we must compare direct costs with avoided costs. Today, LPG appears affordable due to government subsidies of around 500–600 rupees per cylinder.

But energy security must also be considered. During the monsoon, electricity is often wasted, while in winter Nepal imports nearly 1,000 MW from India. In a future global fuel crisis, LPG prices could rise to 10,000–15,000 rupees per cylinder, making it unaffordable.

While induction cooking is an option, simultaneous use would overload existing infrastructure, requiring massive investment. Even then, seasonal imbalance would remain.

Therefore, we need a system that stores surplus monsoon electricity for winter use. Large batteries or reservoir storage are expensive. Hydrogen offers a practical complement to the electricity system by storing excess energy for later use.

How is the production cost right now compared to the price?

Since this is a pilot project, costs are naturally high because everything is custom-built. A component that costs 40,000 rupees today could drop to 400 rupees in mass production.

In hydrogen production, water is essentially free; the main costs are electricity and infrastructure. At current grid prices of 8–9 rupees per unit, hydrogen production is expensive. However, if surplus monsoon electricity priced at 2–3 rupees per unit is used, hydrogen could become competitive with LPG and significantly reduce import dependency.

Now, finally, let's talk about policies and laws. Moving beyond the pilot project and delivering this commercially to every household—what is Nepal's legal situation like for that?

This is the biggest challenge. We currently have 24 cylinders ready, and technically we could supply gas to households for cooking. But globally, including Nepal, there are no clear regulations for domestic hydrogen use.

Without legal frameworks, even a minor accident could create serious liability issues. That is why we have not yet expanded beyond micro-hydro staff use.

Standards are urgently needed for stoves, cylinders, storage, and transport. While electricity-based cooking works in cities, hydrogen is especially suitable for rural areas where surplus electricity is otherwise wasted.

In the end, what are your suggestions for the government?

The government has already allocated a budget for a 2.5 MW hydrogen plant in Hetauda, which is a positive signal. It shows recognition of hydrogen’s potential in industrial applications such as fertilizer production.

However, the government should also formally recognize hydrogen as a domestic energy option and move forward with laws, regulations, and technical standards. Only then can pilot successes be scaled into real-world benefits for the public.

पछिल्लो अध्यावधिक: असार ७, २०८३ १४:३९

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