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Butwal Power Company Limited (BPC) on Tuesday inaugurated its 50 kW Green Hydrogen Pilot Project at Darimchaur, Pyuthan, marking an important step in Nepal’s early exploration of green hydrogen as a future clean energy solution.

The BPC has installed the first pilot project, which uses renewable hydropower to produce green hydrogen through electrolysis, in an area adjacent to its 12 MW Jhimruk Hydroelectric Project. The project is being implemented with technical assistance from the World Bank and financial support from UK International Development through the Foreign, Commonwealth and Development Office (FCDO), Government of the United Kingdom.

The inauguration ceremony was attended by Member of Parliament of Lumbini Province, representatives from the Ministry of Energy, Water Resources and Irrigation, local government authorities from Pyuthan, the FCDO, the World Bank, CDO of Pyuthan District, BPC, Nepal Electricity Authority, and number of stakeholders from Nepal’s energy sector.

Green hydrogen is increasingly recognized globally as an important component of the transition toward low-carbon energy systems. Produced by splitting water through electrolysis using renewable electricity, green hydrogen can support decarbonization in sectors where direct electrification may be difficult, including transport, industry, fertilizer production, and long-duration energy storage.

BPC’s pilot facility uses a 50 kW alkaline electrolyzer system designed to produce high-purity hydrogen with an output purity of 99.99 percent. The produced hydrogen will be compressed and stored in cylinders at 150 bar pressure, enabling testing and evaluation of potential end-use applications.

The project has been contracted to CPU Hydrogen Power Technology Co Ltd, China for construction. The plant was commissioned on 13 April 2026, with the first hydrogen cylinder successfully filled on the same date.

BPC representatives noted that the project reflects the company’s continuing commitment to renewable energy innovation and practical experimentation with emerging clean energy technologies. The piloting is expected to generate important lessons on hydrogen production, compression, storage, safety, operations, technical performance, economic viability, and potential applications in Nepal.

The project comes at a time when Nepal is assessing how green hydrogen could support its broader energy future. With its significant hydropower potential, Nepal is well positioned to explore whether surplus renewable electricity can be converted into green hydrogen for domestic use, industrial applications, transport, long-duration storage , and possible future regional market opportunities. The Government of Nepal has also planned a 2.5 MW green hydrogen pilot project in Hetauda, further reinforcing the country’s growing interest in this emerging sector.

For BPC, the project is a practical first step toward understanding the future role of green hydrogen in Nepal’s energy system. Lessons from the pilot will help inform future decisions on scale-up, commercial feasibility, safety standards, regulatory requirements, and integration of hydrogen into Nepal’s clean energy mix.

BPC is one of Nepal’s leading private-sector power companies, engaged in the development, generation, transmission, and distribution of renewable energy. With six decades of experience in hydropower development and energy innovation, BPC continues to contribute to Nepal’s sustainable energy future through reliable, clean, and forward-looking energy solutions.