Nepal has the opportunity to turn its rainy-season energy surpluses into clean, carbon-free fuel. It’s not a far-fetched dream. It’s a technically sound, economically viable way to use its rivers for more than just electricity exports. It’s about green hydrogen.
Nepal is rich in hydropower. The rivers flow down the steep hills, giving Nepal a renewable advantage. As new hydro projects come online, especially during the monsoon, Nepal is generating more electricity than we can use or export profitably. Since electricity is difficult to store at scale, this surplus often goes to waste, spilled back into the rivers it came from.
But what if Nepal could bottle that energy?
That’s where hydrogen comes in, specifically, green hydrogen, created by splitting water using renewable electricity. It’s a clean, flexible fuel that can help decarbonize heavy industry, power fuel-cell vehicles, and replace fossil-based feedstocks in fertilizer production. We did the detailed analysis on it on our study, “Hydrogen production from surplus hydropower: Techno-economic assessment with alkaline electrolysis in Nepal’s perspective”.
The core process for green hydrogen is electrolysis using renewable electricity. The reaction is straightforward:
$$\mathrm{H}_2\mathrm{O} (l) \xrightarrow{\text{electrolysis}} \mathrm{H}_2 (g) + \tfrac{1}{2}\mathrm{O}_2 (g)$$
Here’s how it works: an electric current is passed through water mixed with potassium hydroxide (KOH). At the cathode, water is reduced:
$$\mathrm{H}_2\mathrm{O} + 2,e^- ;\longrightarrow; \mathrm{H}_2 + 2,\mathrm{OH}^-$$
At the anode, the hydroxide ions are oxidized:
$$2,\mathrm{OH}^- ;\longrightarrow; \tfrac{1}{2},\mathrm{O}_2 + \mathrm{H}_2\mathrm{O} + 2,e^-$$
The resulting hydrogen is dried and either compressed for storage or used immediately. Under typical conditions (80°C, 9–10 bar), alkaline electrolyzers consume around 50–60 kWh of electricity per kilogram of hydrogen.
So, why use surplus power for this? Because it’s energy that would otherwise be wasted. During off-peak hours or monsoon peaks, the grid can’t absorb the excess. Hydro plants are forced to throttle output or spill water, both inefficient outcomes. Converting that surplus into hydrogen captures value, stabilizes the grid, and creates a storable, high-demand fuel.
Of course, economics matter. Enter the Levelized Cost of Hydrogen (LCOH), a lifecycle measure of hydrogen cost:
$$\text{LCOH} = \frac{\sum \text{All Cost Over Lifetime}}{\sum \text{H}_2 \text{ Produced Over Lifetime}}$$
In Nepal’s context, current LCOH estimates are around $5.65 per kg, higher than fossil-derived hydrogen. But green hydrogen carries no carbon emissions, and that changes the equation. With supportive policies, like reduced electricity tariffs during off-peak hours or tax incentives for electrolysis equipment, LCOH could drop to about $4.20 per kg, making it much more competitive.
The potential is massive. Projections suggest Nepal could have 10 to 25 terawatt-hours of surplus electricity per year by the early 2030s, enough to produce hundreds of thousands of tonnes of green hydrogen annually. Whether it’s used domestically for fertilizers or exported as ammonia or fuel depends on infrastructure rollout, but the technical feasibility is already clear.
This isn’t just about spreadsheets and emissions. It’s about reimagining Nepal’s energy future. Do we keep exporting cheap electrons? Or do we climb the value chain, turning monsoon water into green fuel?
Personally, there’s something poetic about it. Water spins turbines. Turbines split water. And the resulting hydrogen powers the next generation. May be it is more than just science and engineering.
Yes, challenges remain: policy inertia, infrastructure, and market readiness. But with the right steps, Nepal could become a green hydrogen powerhouse in South Asia.
If you Want the full technical paper, You can read it here: https://doi.org/10.1016/j.ijhydene.2024.06.117.