At a time when the country is suffering burdensome expenditures from petroleum imports, the government is looking forward to collaborating with the business sector to develop hydrogen-based energy generation plants.

Finance Minister Janardan Sharma stated his interest in building a 100 MW hydrogen gas plant in Nepal during a meeting with officials from Kathmandu University’s Green Hydrogen Lab (GHL) on Tuesday. “While the Ministry of Finance will perform the essential groundwork, the private sector is expected to provide associated study and technical help,” Sharma added.

Many wealthy countries are currently converting to hydrogen plants as a source of green energy. However, in Nepal, the notion is still fresh. Sharma stated that the government will meet with the Nepal Investment Board to attract potential investors in the sector.

GHL’s chief, Biraj Singh Thapa, said the company is in negotiations with foreign groups to build a 100 MW green hydrogen plant in the next year and a half. According to him, one kilogram of hydrogen fuel requires nine kilograms of clean water.

According to Thapa, Nepal has a significant potential for producing hydrogen-based power due to its abundant freshwater resources. “As a result, producing electricity through this method will be significantly cheaper in Nepal than in similar other nations,” he noted.