KATHMANDU, July 10: The state-owned Nepal Oil Corporation (NOC), which has been importing and selling petroleum products from India, has unveiled plans to produce and use hydrogen gas. As a clean and green energy source, hydrogen gas is increasingly being adopted by many countries as an alternative to petroleum products. Since petroleum contributes to environmental pollution, the corporation is now moving forward with preparations for the commercial production of hydrogen for domestic use.
The NOC’s Managing Director Dr. Chandika Prasad Bhatta stated that hydropower-rich countries like Nepal have great potential for producing green hydrogen, making its usage necessary. “The NOC has devised a high-level plan to transition to green energy,” Bhatt said. “In the first phase, we plan to use hydrogen for vehicles, followed by its use in cooking.”
With the support of the NOC, Kathmandu University (KU) has successfully tested the use of hydrogen in cars and is now planning for commercial production. After successfully testing a hydrogen car in Nepal, the NOC is showing enthusiasm for the commercial use of hydrogen gas. The KU has tested a Hyundai hydrogen car on campus. “KU has already used hydrogen gas in vehicles,” said MD Bhatta, “Now we plan to move forward with commercial production.”
Bhatta emphasized that Nepal should not delay transitioning to green hydrogen as an alternative to petroleum products. "We have conducted studies on how and where hydrogen can be used," he said. "Based on the recommendations from these studies, we will formulate and advance commercial plans." He added, "Since hydrogen is produced from water and electricity, Nepal has great potential for its development."
‘Green hydrogen laws needed’
Electricity is generated from water, and then that electricity is used to split water molecules to produce hydrogen. One kilogram of hydrogen can generate up to 50 units of electricity. The energy produced from hydrogen obtained through this method is called hydrogen energy. Hydrogen can be used for vehicles, cooking, and in industrial sectors.
Recent studies have found that one kilogram of hydrogen is 400 times lighter than a battery. Scientific research has shown that one kilogram of hydrogen can power a car to run up to 70 kilometers.
Developed countries have started using hydrogen energy as an alternative to petroleum and coal. Former Chief Secretary Baikuntha Aryal said Nepal should promote the use of hydrogen. Since Nepal has abundant water and electricity resources, he believes there is great potential for hydrogen energy in the country.
“It may be expensive initially,” said former Chief Secretary Aryal, “It can be used for transportation and cooking.” He also mentioned the possibility of exporting hydrogen through pipelines in the future.
Since the raw materials used for hydrogen production are available domestically, it can replace petroleum products and help prevent foreign currency from flowing out of the country. This will assist in reducing the trade deficit. Although KU has already put a hydrogen-powered car into use, it has not yet received a license plate for operation. Stakeholders say that if the government facilitates hydrogen production, the private sector will also be encouraged to invest.
Government officials say that the production and use of green hydrogen must be promoted through government initiatives. Dr. Ram Prasad Ghimire, Secretary at the Ministry of Industry, Commerce and Supplies, says that production, storage, and distribution of green hydrogen should be initiated as a pilot project. “Focus must be given to research and production,” Ghimire said.
The government has also introduced a Green Hydrogen Policy. Aimed at promoting the development of renewable and alternative energy sources, the policy encourages the production and use of green hydrogen by utilizing energy generated from renewable sources such as hydropower. The policy envisions producing chemical fertilizers, reducing dependency on petroleum imports, and fostering a low-carbon economy. It has been introduced to facilitate the production, use, and management of green hydrogen in Nepal.
The government has also made provisions to offer incentives for the establishment of industries that produce green hydrogen and its by-products, as well as to promote investment in this sector based on necessity and relevance. The policy mentions that special legal provisions will be introduced to grant such exemptions, and that the utilization of green hydrogen production will contribute to reducing carbon emissions and promoting carbon trading.
The policy also includes provisions to build transmission lines and substations to supply electricity to industries producing green hydrogen and its by-products. It mentions facilitating the acquisition of land as per existing laws for the production, use, storage, and transportation of green hydrogen.
