Economic Feasibility of Green Hydrogen Technology in Nepal

Abstract

Hydrogen is being produced in some serious quantities over the years. Hydrogen is being used in diversified field. Its use varies from industrial feedstock, heat generation, transport and mobility to the various sectors. Green hydrogen, hydrogen produced from the electrolysis constitute a very small portion in it. This method of hydrogen production if applied, helps to reduce the carbon footprints by great amount. Nepal is expected to have about 8 GW electricity generation by the Year 2030. We should keep our focus on exploring the use of surplus electricity to make the various hydropower projects economically and financially viable. Hence, this paper gives the possible prospects of green hydrogen production and shows its feasibility in the context of Nepal. Preliminary study shows that if we are to produce green hydrogen from the excess electricity that we are exporting, we need 116 MW hydrogen plant. This plant will produce 27,231,870 kg of hydrogen per year. Detailed study shows that hydrogen plant will have mean breakeven point of 10,566 tonnes of hydrogen and mean benefit cost ratio of 3.54 which suggests that the project is economically viable. The green hydrogen plant constructed is projected to reduce carbon footprints by 254,000,000 kg under its operation. Further, the research and development in electrolyzer is bound to decrease the capital and operating costs of the electrolyzer which will eventually