The shift toward a low-carbon economy in Nepal has now entered a pivotal point, and green hydrogen is proving to be a viable solution for decarbonizing transportation. As Nepal commits to achieving net-zero emissions by 2045, the need for clean, reliable and scalable solutions for public mobility has become central. While global trends show rapid adoption of hydrogen technologies, Nepal’s unique hydropower surplus, geography and urban transport needs provide a compelling foundation for early pilot adoption.
With this strategic vision, a 100kW Green Hydrogen Mobility Pilot Project on the Kathmandu-Dhulikhel route will be marked as the country’s first green mobility pilot route, an initiative designed not only to validate the technical feasibility of green hydrogen but also to demonstrate its operational and economic practicality. This article explores the reasons behind considering the Kathmandu-Dhulikhel route and how a 100kW green hydrogen production plant, along with hydrogen city buses, can be used to sustain the first demonstrative system to clean public transportation in Nepal.
Strategic relevance
The Kathmandu-Dhulikhel route is one of the key intercity routes, which links the capital with Dhulikhel, one of the fastest developing educational, administrative and tourism hubs. The route has a steady stream of daily commuters, making it suitable for testing new transportation technologies. With an operational distance of 35 km one way and 70 km for a round trip, the route fits well within the operating range of hydrogen buses.
The route consists of urban, semi-urban and mixed-terrain areas where this project could evaluate the vehicle performance in different road and traffic situations. This information will be valuable for planning future deployment on longer or more complex routes. The constant and consistent flow of travel across the corridor also facilitates proper evaluation of fuel consumption, scheduling, and maintenance procedures, which make up a holistic analysis of the pilot project.
Bhaktapur as a hub
Based in Kharipati (Bhaktapur), Nepal Electricity Authority (NEA) Training Center can be considered a suitable location for the hydrogen production and refueling facility since it provides strong institutional support in terms of reliable electricity supply, technical expertise and safety-related facilities. The availability of adequate land within the area further supports the installation of the hydrogen production plant, storage systems and necessary safety infrastructure. Also, Bhaktapur lies around the midpoint of the Kathmandu-Dhulikhel route, making it a strategically convenient location for refueling operations.
From a safety perspective, this location is positioned away from dense residential areas, lowering risks associated with storing hydrogen at high pressure. The open space available offers sufficient space to be used to install the necessary safety measures like fire shields, ventilation systems and emergency response measures. These combined factors, along with water availability, reliable electricity, good road connectivity and appropriate safety conditions, make Kharipati a viable location option for Nepal’s first green hydrogen production facility.
Technical design
The pilot project involves the use of a 100kW Proton Exchange Membrane (PEM) electrolyzer with a capacity of up to 22.5 Nm3 of hydrogen per hour, which is equivalent to approximately 2.02 kg per hour. By operating 8 hours/day, the plant produces approximately 16.18 kg of hydrogen each day, and when running 24 hours/day, it can produce approximately 48.57 kg/day, costing Rs 1,537 per kg at an electricity tariff of Rs 6 per kWh and Rs 1,812 per kg at an electricity tariff of Rs 11 per kWh.
The estimated land requirement for the facility is about 200 square meters (6.3 aana), which is adequate to accommodate the electrolyzer, storage cylinders, compression units and other important safety systems. The plant needs 80 to 240 liters of water per day for 8 hours and 24 hours of operation, respectively. The electricity requirement is up to 103 kW, resulting in a daily consumption of 824 kWh of electricity per day at an 8-hour operation and 2,472 kWh of electricity per day at a 24-hour operation. At an average electricity cost of Rs 6 per kWh, the daily electricity expense is about Rs 4,944 for the 8-hour schedule and Rs 14,832 for continuous operation. These values show that the energy requirements of the plant can be handled in a manageable and economical manner.
Operation and efficiency
The pilot project incorporates the mobility aspect with two hydrogen fuel-cell electric buses. Each bus has a 110kW fuel-cell stack, 195kW electric motor and six high-pressure hydrogen cylinders with combined storage capabilities of 44.4 kg of hydrogen at 70 MPa. The bus has a seating arrangement of 36 passenger seats, 3 foldable seats, and 1 driver seat, making it suitable for regular public transport use. Under normal operating conditions, a fully-fueled bus can travel around 700 km.
The Dhulikhel-Kathmandu route covers a round-trip distance of 70 km, requiring an average of 4.44 kg of hydrogen per bus, based on a fuel economy of 15.8 km per kg. Since both buses complete one round-trip per day, the total daily hydrogen consumption is 8.88 kg. Because the plant’s daily hydrogen output is higher than this demand, the project can maintain stable bus operations while also supplying additional hydrogen to refueling storage.
CAPEX and OPEX structure
The economic structure of the hydrogen pilot project can be understood through its capital investment (CAPEX) and operational expenditure (OPEX). The total CAPEX for the hydrogen production plant and two fuel-cell buses is Rs 282.56m.The largest portion of the investment is the electrolyzer and purification system, comprising 64 percent of the total CAPEX of about Rs 181.26m, inclusive of logistics. This consists of the 100kW PEM electrolyzer, power modules, control units and the hydrogen purification system. The balance-of-plant (BoP) accounts for 13 percent, equivalent to about Rs 35.79m. The procurement of two 12-meter FCEV hydrogen buses represents around 23 percent of total CAPEX, amounting to Rs 101.3m, including logistics. As the project is mobility-focused, the cost of these buses is a key component of the overall investment.
The operational expenditure (OPEX) is strongly influenced by electricity costs because electrolysis depends heavily on energy input. Electricity accounts for 48-55 percent of OPEX, depending on the electricity tariff applied. Maintenance accounts for 22-28 percent, as regular inspection and component servicing are essential for electrolyzer systems. Human resources form 14-16 percent, covering operators, technicians and administrative staff. Insurance and regulatory compliance make up 7-13 percent, and miscellaneous operational needs account for five percent to nine percent.
Conclusion
The Kathmandu-Dhulikhel green mobility project is not just a demonstration program, but it will be a National Pride Project, a project that will indicate that Nepal is committed to a sustainable and prosperous future. The project helps raise public awareness on green transportation and supports human resource development by providing researchers and technical personnel with practical experience in hydrogen technology. This initiative also helps to open the avenue of foreign investment and enhances Nepal’s opportunities of gaining carbon credits through the mitigation of emissions by demonstrating the technical and economic viability of hydrogen-powered mobility.
This project lays the foundation for future expansions. As hydrogen technology becomes more affordable and widespread, Nepal can scale up production capacity, introduce more hydrogen buses and extend green mobility to other regions. Through well-developed policy support, investment incentives and technological cooperation, the nation has the potential to reduce the number of times it relies on fossil fuels, decrease its emissions, and enhance energy security. In line with this, the project is not only a transport project but also a major leap toward a cleaner and sustainable Nepal.
