IBN, Korea’s G-Philos sign MoU for green hydrogen, fuel cell plant in Nepal

Kathmandu, Aug. 29: The Investment Board Nepal (IBN) and G-Philos Company Limited, Republic of Korea, have signed a Memorandum of Understanding (MoU) for the preparation of a detailed feasibility study report on establishing a Green Hydrogen Plant and Fuel Cell Plant in Nepal.

Sushil Gyewali, Chief Executive Officer of IBN, and Ga-Woo Park, Chief Executive Officer of G-Philos Company Limited, singed the MoU amidst a function on Thursday.

Park Tae-Young, Ambassador of the Republic of Korea, along with government officials, and representatives from development partners, private sector, and think tanks attended the signing ceremony.

According to the MoU, G-Philos Company Limited will prepare a detailed feasibility study report after obtaining a survey permit from the Investment Board and submit it to the Office of the IBN within about 10 months.

This collaboration is expected to pave the way for investment approval for establishing, developing, and operating a Green Hydrogen and Fuel Cell Plant in Nepal, with an estimated cost of Rs. 6.8 billion to be developed under the Public-Private Partnership (PPP) model, according to the IBN.

At the signing ceremony, Park Tae-Young, South Korean envoy to Nepal, said that Nepal has immense potential for this type of renewable clean energy.

He expressed his belief that such projects will prove to be a milestone in the achievement of the sustainable development goals that Nepal has set for itself and will add a new dimension to the bilateral relations between Nepal and South Korea. 

CEO Gyewali said that the academic sector would also play a crucial role in such projects and that the projects would play an important role in the exchange of capital and technology in a country like Nepal.

He expressed his hope that the proposing company would submit a quality report within the specified time and expressed his commitment to establish a green hydrogen plant in Nepal as soon as possible after the study.

On the occasion, Chairman of the Electricity Regulatory Commission Dr. Ram Prasad Dhital, Director General of the Department of Electricity Development Jeebachh Mandal, Joint Secretary of the Ministry of Energy, Water Resources and Irrigation Chiranjivi Chataut, Managing Director of the Nepal Electricity Authority Hitendra Dev Shakya and Dr. Biraj Singh Thapa, a researcher at Kathmandu University who is active in the study and research of green hydrogen, shared their views on the current policy and legal arrangements regarding green hydrogen in Nepal, its multifaceted benefits, and the use of this type of energy in 

the coming days.

G-Philos Company Limited had submitted a proposal to the Office of the Investment Board Nepal on April 28, 2025 for the establishment, development and operation of a green hydrogen and fuel cell plant in Nepal in a public-private partnership model. 

The 63rd board meeting of the Investment Board Nepal decided to grant the survey permission by reaching an agreement with the proposing company.

The journey toward green hydrogen development in Nepal began with the initiative of the Prime Minister KP Sharma Oli during his previous tenure, when the Asian Development Bank conducted a study in 2020 on the potential of producing hydrogen using Nepal’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.

Recognising the importance of clean energy, Nepal has prioritised the production and use of renewable energy, including green hydrogen, in line with its recent international commitment to achieve net-zero 

carbon emissions. 

The government of Nepal has endorsed the Green Hydrogen Policy, 2023, providing a framework to promote and facilitate investment in this emerging sector.