SATV Kathm,andu Aug 29: The Investment Board Nepal (IBN) has signed a memorandum of understanding (MoU) with a South Korean company to prepare a detailed feasibility study report for the establishment of a green hydrogen and fuel cell plant in Nepal.

The MoU was signed by Sushil Gyawali, Chief Executive Officer of IBN, and Ga Woo Park, Chief Executive Officer of G-Philos Company Limited, on behalf of their respective organizations.

The signing ceremony was witnessed by Korean Ambassador Park Tae-Young, along with government officials, private sector representatives, and members of various think tanks.

According to IBN, the collaboration is expected to pave the way for investment approval for the establishment, development, and operation of a green hydrogen and fuel cell plant in Nepal. The project, estimated to cost Rs 6.8 billion, will be developed under the Public-Private Partnership (PPP) model.

Nepal's journey toward green hydrogen development began during the previous tenure of Prime Minister KP Sharma Oli, when the Asian Development Bank conducted a study in 2077 BS on the potential of producing hydrogen using the country's abundant hydropower resources.

In the same year, Kathmandu University established a Green Hydrogen Laboratory to advance research and explore the prospects and requirements of green hydrogen in the national context.

Recognizing the importance of clean energy, Nepal has prioritized the production and utilization of renewable energy, including green hydrogen, in line with its international commitment to achieve net-zero carbon emissions.

In this regard, the government has endorsed the Green Hydrogen Policy, 2080 BS, providing a comprehensive policy framework to promote and facilitate investment in this emerging sector, IBN stated.