Commercial production and use of hydrogen in Nepal has opened the way. The Cabinet meeting held on Wednesday passed the green hydrogen production and use policy, opening the way for commercial production and use of hydrogen in Nepal.
Head of Green Hydrogen Lab of Kathmandu University (KU). Viraj Singh Thapa said that with the passing of the green hydrogen policy, the way for commercial production and use of hydrogen is open.
On Wednesday, the green hydrogen policy was passed by the cabinet. This policy was also necessary,' he told ICT news, 'now laws should be made according to the policy.'
Viraj Singh Thapa also participated as an expert from Kathmandu University in the drafting committee of policy related to green hydrogen production and use.
In the green hydrogen policy, it has been arranged to maintain a simple tax system similar to that of hydropower and hydrogen can be produced even if there is no power purchase agreement (PPA) with the Nepal Electricity Authority.
According to Thapa, there is an arrangement in the policy to adopt an easy tax policy like that of hydropower and to produce hydrogen without making a PPA with the Nepal Electricity Authority. So far, there is a provision to make a PPA with the authority to build hydropower.
Similarly, provision has been made in the policy that no wheeling charge (transmission fee) will be charged to connect the hydrogen production to the transmission line of the government. He informed that the policy also includes the arrangement of connecting the production of hydrogen to the government transmission line without wheeling charges.
Although there is a huge potential for hydrogen production in Nepal, due to lack of policy, investments were not attracted towards it. The policy includes the issue of creating a suitable environment for domestic investment along with foreign investment for hydrogen production.
Thapa believes that with the coming of the policy, an environment for domestic and foreign investment will be created in an easy way for the commercial production and use of hydrogen in Nepal.
Hydrogen can open the door to growth
The Gulf countries, which once lived in poverty, have become developed countries by selling fuels such as gas, petrol and diesel. Currently, Nepal purchases about 4 trillion worth of fossil fuels (gas, petrol, diesel, coal) annually.
By reducing fossil fuel imports, extracting hydrogen from electricity and gradually purchasing fuel, 4 billion foreign currency can be kept in Nepal. Thapa said that if hydrogen is produced using the water and electricity that Nepal has, the money spent on buying fossil fuels can be kept in the country.
'We have plenty of water and electricity to produce hydrogen. By producing hydrogen, Nepal can sell hydrogen to the world,' says Thapa confidently, 'just as Gulf countries became rich from petrol and DJ, Nepal can become rich by selling hydrogen fuel.'
The world is now turning its attention to hydrogen. Different countries of the world have started studying how to produce green hydrogen at a cheap price. Scientists say that in the future, from vehicles to industrial work, hydrogen energy will be an alternative energy.
If Nepal can take advantage of this and sell hydrogen fuel, it can take the entire country in another direction. It can open new doors of growth. But for that, Thapa thinks that we should work from now and make the necessary laws as soon as possible. The International Energy Agency has mentioned that Nepal is among the best 5 countries in the world for cheap hydrogen production.
Currently, the average price of hydrogen in the world market is 5 US dollars per kg. One kilogram of hydrogen runs up to 200 kilometers. There is no consensus on how much it costs in Nepal. But he estimates that hydrogen can be extracted in Nepal for less than 5 dollars.
Studying at Kathmandu University
Kathmandu University has been studying and researching hydrogen fuel for several years. The university is working on this by establishing a Green Hydrogen Lab.
Some time ago, for the first time in Nepal, KU brought a hydrogen fuel car and a filling station to Nepal for testing. It will also be tested in a short time.
Thapa says that KU has started research to shock the country that hydrogen can take the country in the direction of development.