Kathmandu — In a major step towards Nepal’s clean energy transition, Investment Board Nepal (IBN) has signed a Memorandum of Understanding (MoU) with G-Philos Cooperative Limited, a South Korean company, to establish the country’s first Green Hydrogen Production Plant and Fuel Cell Plant. The signing ceremony took place on Thursday in Kathmandu.
Under the agreement, G-Philos will bring in technology, expertise, and investment prospects, while IBN will provide policy facilitation and technical assistance. Both parties have agreed to conduct a Detailed Project Report (DPR) to assess the feasibility of the project.
Investment Proposal Exceeds NPR 7 Billion
According to IBN, G-Philos has proposed an investment of over NPR 7 billion to set up the facility. The company plans to launch the project with an initial production capacity of 20 megawatts of green hydrogen.
The exact site for the plant has not been finalized yet. This marks the first-ever foreign investment proposal in Nepal’s green hydrogen sector.
Utilizing Surplus Hydropower via Electrolysis
The project aims to utilize Nepal’s surplus hydropower to produce green hydrogen through the electrolysis process, which involves splitting water molecules using electricity.
The generated hydrogen will be supplied to steel and fertilizer industries, ammonium nitrate production, and for storage applications, potentially reducing Nepal’s dependence on imported raw materials and boosting industrial self-sufficiency.
Driving Renewable Energy Growth
Green hydrogen is widely regarded as the fuel of the future and a critical step toward a sustainable energy transition. If successful, the project is expected to expand Nepal’s renewable energy portfolio, foster environment-friendly industries, and create new employment opportunities.
Project Approved by Investment Board Nepal
The decision to authorize the DPR was made during IBN’s 63rd board meeting on Jestha 13. Once implemented, this pilot project will pave the way for broader adoption of hydrogen energy and fuel cell technologies in Nepal.
The MoU signing event was attended by Sushil Gyewali, CEO of Investment Board Nepal, and Hitendra Dev Shakya, Executive Director of Nepal Electricity Authority, among other officials.