A memorandum of understanding (MoU) has been signed with a Malaysian company for a feasibility study to set up a green calcium ammonium nitrate fertilizer factory in Nepal.

Investment Board, Nepal (IBN) and reNIKOLA Sdn. Bhd. (Malaysia) signed the MoU for the preparation of a detailed feasibility study report for the establishment of green calcium ammonium nitrate (CAN) factory in Nepal.

Chief Executive Officer of IBN Sushil Bhatta and Managing Director of reNIKOLA Sdn. Bhd. Boumhidi Abdelali signed the MoU amidst a function in the office of IBN Wednesday.

In accordance with the provisions of the Public Private Partnership and Investment Regulations, 2077, reNIKOLA Sdn. Bhd. has submitted a proposal dated January 8, 2023 to produce fertilisers using electricity as energy and based on environmentally friendly technology.

Based on the proposal, the 53rd meeting of the Board Directors of the IBN held on April 13, 2023 decided to grant study permit to the proposer.

Also, the draft of the MoU with the proponent was approved by the 55th meeting of the Board of Directors of IBN held on August 25, 2023.

According to the provisions of the MoU, the reNIKOLA Sdn. Bhd. shall submit the Detailed Feasibility Study Report to the Office of the IBN within 24 months of receiving the permit.

This project, proposed to be set up at Aanbukhareni in Tanahun district has the concept of preparing green Ammonia and green CAN fertilizer using electrolysis technology.

The proposed project with an estimated project cost of USD 260 million is proposed to produce 95,600 tonness of Green Ammonia and 286,975 tonnes of CAN fertiliser annually.

Addressing the program, IBN CEO Bhatta expressed his belief that this project, which aims to produce fertiliser on a green concept in Nepal, will help the development of the green economy by mobilising Nepal's internal resources, including electricity.