Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal is set to receive its first-ever foreign investment in green hydrogen production after the Investment Board Nepal (IBN) signed a memorandum of understanding (MoU) with South Korea’s G-Philos Co. Ltd. on Thursday.
The MoU was signed by IBN CEO Sushil Gyawali and G-Philos CEO Ga Woo Park. Under the agreement, the company will first secure a survey license from the board, then prepare a detailed feasibility study report within 10 months.
South Korean Ambassador to Nepal Park Tae Young, present at the signing, said Nepal holds vast potential in renewable clean energy and that the project would be a milestone in achieving Nepal’s sustainable development goals while adding new dimensions to bilateral relations.
IBN CEO Gyawali noted that such projects would not only promote capital and technology transfer in a developing nation like Nepal but also strengthen collaboration with the academic sector. He expressed confidence that the company would deliver a quality report on time, paving the way for early establishment of a green hydrogen plant in Nepal.
$500 Million Initial Investment Proposal
According to IBN spokesperson Pradyumna Prasad Upadhyay, G-Philos has proposed an initial investment of around USD 500 million (over NPR 70 billion). The pilot project aims to produce 20 megawatts of hydrogen in its first phase, though the location of the plant has yet to be finalized.
The company had earlier submitted a pre-feasibility report on April 27, based on which IBN’s 63rd board meeting on May 27 approved a detailed study. A technical committee has already been formed to evaluate whether the project should move forward under the Swiss Challenge procurement model.
If successful, the company plans to expand the project in phases, with total investment potentially reaching NPR 1 trillion. The project will use surplus electricity generated during Nepal’s monsoon season to split water via electrolysis, producing hydrogen and oxygen.
Regional and Global Market Potential
The green hydrogen is expected to serve industries such as steel manufacturing, fertilizer production, ammonium nitrate, and energy storage. Export opportunities to neighboring India and China are also under consideration.
Globally, green hydrogen is gaining momentum as a clean alternative to fossil fuels. Nepal, which has pledged net-zero carbon emissions by 2050, sees this project as a key contribution toward that goal.
Policy and Local Context
Nepal introduced its Green Hydrogen Policy 2080 last year to promote production and development in the sector. Earlier, Kathmandu University had demonstrated technical viability by testing hydrogen-powered cars and operating the country’s first hydrogen refueling station.
Officials describe the Korean investment proposal as a historic opportunity. The project will formally advance only after the completion of the detailed feasibility study.
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