Kathmandu, November 13
Nepal has invited investment at COP31 to establish a green hydrogen-based chemical fertiliser factory in the country.
The country has put forward an ambitious plan to establish a chemical fertiliser industry based on green hydrogen by using its own hydropower and clean energy resources.
Dr Ram Lama, a lawmaker from the ruling Rastriya Swatantra Party (RSP) who attended the event, said the government had invited domestic and foreign investors, financial institutions, development partners and technology providers to participate in the project, intending to produce green fertiliser domestically and supply it to the Nepali market within the next five years.
According to Lama, Minister for Agriculture, Forests and Environment Geeta Chaudhary told the conference that the government was committed to establishing a green hydrogen-based fertiliser industry.
She expressed the government’s commitment to providing land for the factory, supplying electricity at concessional rates to make the industry competitive, offering tax exemptions on imported equipment and machinery, and introducing necessary policy amendments and new legal provisions.
She also urged domestic and foreign investors and technology providers to participate in the project with concrete proposals.
Lawmaker Lama chaired the session where the project was discussed. He explained the concept, details and proposed implementation modalities of the green hydrogen-based chemical fertiliser production plant envisioned by the Nepal government. He said proposals received from national and international investors would be evaluated before moving ahead with the project’s implementation.
Stating that affordable and reliable electricity supply, as well as guaranteed markets and prices for the fertiliser produced, would be crucial to making the project commercially viable and attractive to investors, Lama said a Fertiliser Purchase Agreement would be necessary to ensure market access and price certainty. He added that Nepal was ready to introduce such an arrangement.
He also said the government would provide necessary support through a Viability Gap Fund to reduce initial investment risks and ensure the project’s financial feasibility.
The discussions were held at an event organised on Thursday at the Nepal Pavilion during the United Nations Climate Change Conference (COP31). The event focused on plans to establish an industry capable of producing around 500,000 metric tonnes of green urea annually through the production and use of green hydrogen and green ammonia.
