Butwal Power Company Limited (BPC) has officially launched a 50-kilowatt Green Hydrogen Pilot Project in Darimchaur, Pyuthan, marking a major step toward exploring hydrogen as a future clean energy solution in Nepal.

The pilot facility has been established within the premises of BPC’s 12 MW Jhimruk Hydropower Project. The project produces green hydrogen through the electrolysis of water using renewable hydropower-generated electricity.

The initiative has been implemented with technical support from the World Bank and financial assistance from the United Kingdom’s Foreign, Commonwealth and Development Office (FCDO) under UK International Development.

The inauguration ceremony was attended by provincial lawmakers, representatives from the Ministry of Energy, Water Resources and Irrigation, local government officials, representatives from the World Bank and FCDO, district authorities, Nepal Electricity Authority officials, and other stakeholders from Nepal’s energy sector.

Green hydrogen is increasingly recognized worldwide as a key energy carrier in the transition toward low-carbon energy systems. It is produced by splitting water into hydrogen and oxygen using renewable electricity, offering a clean alternative for sectors where direct electrification remains challenging.

The pilot plant features a 50-kW alkaline electrolyzer capable of producing hydrogen with a purity level of 99.99 percent. The hydrogen is compressed to 150 bar pressure and stored in cylinders for testing and evaluation across various potential applications.

China-based CPU Hydrogen Power Technology Co. Ltd. served as the EPC contractor for the project. The facility was successfully commissioned on April 13, 2026, with the first hydrogen cylinder filled on the same day.

According to BPC, the project demonstrates the company's commitment to innovation in renewable energy and the practical testing of emerging clean-energy technologies. The pilot is expected to generate valuable insights into hydrogen production, storage, compression, safety standards, technical performance, economic viability, and potential applications in Nepal.

The project comes as Nepal evaluates the role of green hydrogen in its long-term energy strategy. With abundant hydropower resources, the country has the potential to convert surplus renewable electricity into green hydrogen for domestic consumption, industrial applications, transportation, long-term energy storage, and possible regional export opportunities.

The Government of Nepal is also planning a 2.5 MW green hydrogen pilot project in Hetauda, highlighting the growing national interest in hydrogen technology.

For BPC, the project represents an important first step in understanding how green hydrogen can be integrated into Nepal’s future energy mix and contribute to the country’s sustainable energy transition.