The Koshi Province government will establish a chemical fertilizer factory based on green hydrogen, investing Rs 26 billion. Officials finalized the decision at the conclusion of the "Koshi Province Investment Summit 2025" on Friday.

During the summit, stakeholders signed agreements for 46 different projects worth a total of Rs 52.16 billion.

Among them, the Rs 26 billion project will focus on green hydrogen. In the presence of Chief Minister Hikmat Kumar Karki, Provincial Investment Authority CEO Dr Saroj Koirala and the developer signed a memorandum of understanding (MoU).

The Koshi Province government has announced plans to develop 71 projects worth an estimated Rs 130 billion, following the conclusion of the Koshi Province Investment Summit 2025 held on Friday.

According to the Provincial Investment Authority, the government will develop eight projects in agriculture, three in energy, twelve in industry, nine in infrastructure, two in information technology, ten in tourism, and two in waste management. Of the total projects, 19 will be implemented by the private sector, while 27 will follow a public-private partnership (PPP) model.

The summit also saw the signing of a MoU to establish a chemical fertilizer factory based on green hydrogen. Chief Executive Officer of the Provincial Investment Authority Dr Saroj Koirala and Managing Director of Green Hydrogen Company Galba Bahadur Dhungana signed the agreement.

Associate Professor Dr Biraj Singh Thapa said that Kathmandu University had prepared the project proposal.

Although stakeholders have discussed establishing a fertilizer factory for 40 years, the government has now taken its first formal initiative. Dr Biraj Singh Thapa expressed confidence that the project would move forward, as both the government and opposition parties have shown solidarity.

Thapa stated that the project, with an estimated cost of Rs 26 billion, would produce a detailed project report (DPR) within three years. He said the authorities plan to build the factory between Udayapur and Sunsari districts and aim to use carbon dioxide emitted by Udayapur Cement in the production process.

He added that the factory would produce 200,000 metric tons of fertilizer annually in eastern Nepal, help resume operations at Udayapur Cement, and manage industrial emissions. He believes the project would significantly boost food security. The factory will operate under a public-private partnership (PPP) model.

Nepal requires 800,000 metric tons of chemical fertilizer annually, but supplies often fall short, rarely exceeding 500,000 metric tons. As a result, farmers frequently face severe shortages during critical planting seasons.