Nepal’s Green Hydrogen Policy Reshapes Energy Landscape

The Nepalese government has unveiled the Green Hydrogen Policy 2080 BS, positioning itself at the forefront of the global green hydrogen sector.

This strategic move aims to propel the production and utilization of green hydrogen, leveraging electricity generated from renewable sources like hydropower to mitigate the adverse impacts of climate change.

The primary objectives of the Green Hydrogen Policy are multifaceted, reflecting a comprehensive approach towards fostering sustainability and reducing environmental impact.

The key goals include:

• Advancing a Low Carbon Economy: The policy envisions the creation of a low carbon economy by promoting the production and utilization of green hydrogen, aligning with global efforts to combat climate change.

• Reducing Petroleum Dependency: By encouraging the use of green hydrogen as an alternative to traditional petroleum products, Nepal aims to significantly reduce its dependence on imported fuels, leading to a more secure and sustainable energy future.
• Promoting Industrial Diversification: The policy advocates for the diversification of industries, particularly in the production of chemical fertilizers utilizing green hydrogen and its by-products. This move not only supports economic growth but also enhances energy security.
• Stimulating Research and Development: A pivotal aspect of the policy involves fostering studies and research on the commercial applications of green hydrogen and its by-products. This emphasis on R&D positions Nepal to be a key player in the emerging green hydrogen market.

Nepal’s heavy reliance on imported petroleum products has been a longstanding concern, contributing to approximately 13 percent of the country’s trade deficit. The implementation of the Green Hydrogen Policy is anticipated to replace a significant portion of these imports, channeling the financial resources spent on foreign fuels back into the country’s economy.

Nepal boasts a tremendous potential for hydropower generation, with ongoing projects exceeding 20,000 megawatts in various stages of development. The Green Hydrogen Policy strategically aligns with this potential, envisioning the utilization of surplus hydroelectricity for the production and consumption of green hydrogen. This not only reduces reliance on imported fuels but also positions Nepal as a self-sufficient hub for sustainable energy.

The introduction of the Green Hydrogen Policy aligns with Nepal’s international commitments to reduce carbon emissions and contribute to global environmental preservation. Beyond environmental benefits, the production and utilization of green hydrogen are expected to fortify Nepal’s economy by reducing imports of coal, furnace oil, LPG gas, and other substances that currently contribute to the country’s trade deficit.