Kathmandu: Formal efforts to explore the potential of green hydrogen production and utilization in Nepal have begun. Butwal Power Company (BPC) has inaugurated a 50-kilowatt Green Hydrogen Pilot Project at the premises of its 12 MW Jhimruk Hydropower Plant in Darimchaur, Pyuthan.
While inaugurating the project on Monday, BPC described it as an initial step toward assessing the feasibility of green hydrogen as a future clean energy solution in Nepal. The project has received technical support from the World Bank and financial assistance from UK International Development through the UK Government’s Foreign, Commonwealth & Development Office (FCDO).
The pilot project has been developed to produce green hydrogen through the electrolysis process using renewable electricity generated by BPC’s hydropower plant. Electrolysis technology splits water into hydrogen and oxygen using electricity. Since the electricity used comes from renewable sources, the resulting hydrogen is referred to as “green hydrogen.”
According to BPC, the 50-kW alkaline electrolyzer installed under the project is capable of producing hydrogen with a purity level of 99.99 percent. The hydrogen produced will be compressed into cylinders at a pressure of 150 bar for storage, enabling testing and evaluation of various potential applications.
The project’s EPC (Engineering, Procurement and Construction) contractor is the Chinese company CPU Hydrogen Power Technology Co. Ltd. BPC stated that the facility was formally commissioned on April 13, 2026, and the first hydrogen cylinder was successfully filled on the same day.
The inauguration ceremony was attended by members of the Lumbini Provincial Assembly, representatives of the Ministry of Energy, Water Resources and Irrigation, local government officials from Pyuthan, representatives from the UK Government’s FCDO and the World Bank, the Chief District Officer of Pyuthan, officials from the Nepal Electricity Authority (NEA), BPC representatives, and other stakeholders from the energy sector.
Globally, green hydrogen is increasingly viewed as a key enabler in the transition toward low-carbon energy systems. International experience suggests that it can serve as an effective alternative in sectors where direct electrification is difficult, such as transportation, industry, fertilizer production, and long-term energy storage.
BPC stated that the project will generate valuable experience and data related to hydrogen production, compression, storage, safety management, operations, technical performance, economic viability, and potential applications in Nepal. Company representatives noted that the initiative forms part of BPC’s long-term commitment to renewable energy innovation and the practical deployment of clean energy technologies.
Given Nepal’s vast hydropower potential, studies are underway to assess the possibility of converting surplus renewable electricity into green hydrogen for domestic consumption, industrial applications, transportation, long-term energy storage, and even potential regional markets.
Meanwhile, the Government of Nepal is also planning to advance another green hydrogen pilot project with a capacity of 2.5 MW in Hetauda. This reflects growing interest from both the public and private sectors in the development of green hydrogen in Nepal.
BPC stated that it considers the project the first practical step toward establishing a foundation for future decisions regarding the commercial viability of green hydrogen, safety standards, regulatory frameworks, and its integration into Nepal’s clean energy system.
Active in hydropower development, generation, transmission, and distribution for more than six decades, BPC said it remains committed to contributing to Nepal’s sustainable energy future through clean, reliable, and long-term energy solutions.
Jalasarokar
