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The Nepal Stock Exchange (NEPSE) plunged by 19. 89 points to close at 2, 741. 97 points on Tuesday.

Similarly, the sensitive index dropped by 2. 69 points to close at 473. 68 points.

A total of 10,535,874-unit shares of 323 companies were traded for Rs 4. 43 billion.

Meanwhile, Him Star Urja Company Limited (HIMSTAR) was the top gainer today with its price surging by 9. 98 percent. Likewise, Unnati Sahakarya Laghubitta Bittiya Sanstha Limited (USLB)was the top loser as its price fell by 7. 47 percent.

At the end of the day, the total market capitalization stood at Rs 1. 55 trillion.

The price of gold has increased by Rs 600 per tola in the domestic market on Tuesday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 205, 900 per tola today.  It was traded at Rs 205, 300 per tola on Monday.

Similarly, the price of silver has increased by Rs 15 and is being traded at Rs 2, 485 per tola today.

Nepal has been studying hydrogen fuel since 2008. After nearly 17 years of research, the government has begun work on producing green hydrogen fuel. A memorandum of understanding has been signed with South Korean company G-Philos to establish a green hydrogen plant and fuel cell facility in Nepal.

The Investment Board Nepal (IBN) is preparing a detailed project report (DPR) to explore producing hydrogen fuel using around 20 megawatts of electricity. According to IBN spokesperson Pradyumna Prasad Upadhyay, the proposed project is estimated to cost about Rs 6 billion. Initially, only a small-scale production will be attempted, with plans to expand depending on the feasibility study.

The agreement was signed on Thursday by IBN CEO Sushil Gyawali and G-Philos CEO Ga Woo Park. As per the agreement, the company will prepare the DPR within 10 months of receiving a survey permit from the board.

G-Philos had submitted its proposal on April 15 for the establishment, development, and operation of a green hydrogen and fuel cell plant in a public-private partnership model. The 63rd meeting of the IBN decided to grant the survey permit.

Biraj Singh Thapa, a researcher and associate professor at Kathmandu University, welcomed the agreement, noting that KU has been conducting green hydrogen research and even demonstrated a hydrogen-powered car. He highlighted that the Hydrogen Policy 2023, along with tax exemptions on machinery and equipment and a five-year income tax holiday announced in the current budget, has drawn foreign interest in Nepal’s hydrogen sector.

According to the policy, machinery and equipment imported for green hydrogen production are exempt from all taxes and duties. This, Thapa added, is expected to attract both foreign and domestic investors. The 20 MW feasibility study will also assess whether the fuel can be used domestically or exported, and identify a potential plant location.

Kathmandu University established a Green Hydrogen Lab in 2020 to research the use of hydrogen in fertilizer factories, iron ore processing, and as a coal substitute in cement industries. Hydrogen has long been considered a potential renewable energy source, and its production could help Nepal meet its commitment to achieving net-zero carbon emissions.

Several institutions have studied Nepal’s hydrogen potential. Tribhuvan University and Western Michigan University jointly concluded that hydrogen could be produced using hydropower, reducing petroleum imports. The Asian Development Bank carried out a similar study in 2020, while the Water and Energy Commission Secretariat assessed possibilities in 2021. A study in 2022 further explored hydrogen-based fertilizer production.

Globally, countries including India, China, and the United States have already developed hydrogen roadmaps and policies. Nepal’s Hydrogen Policy 2023 also recognizes significant potential for hydrogen and related products from hydropower.

Hydrogen is produced by splitting water into hydrogen and oxygen using electricity. Roughly one kilogram of hydrogen can be extracted from nine kilograms of water, requiring about 50 kilowatt hours of electricity. With abundant water resources and surplus electricity, Nepal is well positioned to produce hydrogen.

Hydrogen can be stored as a liquid, gas, solid, or metal hydride, making it suitable for domestic use or export. Studies suggest that hydrogen could replace at least two percent of Nepal’s diesel imports. Given the size of the domestic diesel market—worth around Rs 71bn—green hydrogen could play an important role in diversifying Nepal’s energy mix and enhancing energy security over the next decade.

German company DIAG Industries GmbH has submitted a detailed project report (DPR), along with estimated investment requirements, to the Office of the Investment Board Nepal (OIBN) for establishing a chemical fertilizer plant in the country. According to the report, the plant will produce two types of chemical fertilizers—urea and ammonium nitrate—through three different processes: natural gas, electrolysis and a hybrid method. The hybrid process would enable the production of both urea and ammonium nitrate simultaneously.

The project aims to replace Nepal’s fertilizer imports and reduce the country’s dependence on costly foreign supplies. The plant is expected to come into operation by 2028, according to information posted on the DIAG website. OIBN and the German firm had signed a memorandum of understanding (MoU) two years ago to prepare the DPR for the project. The 50th Board meeting of OIBN, held on 31 March 2022, decided to issue a survey license to DIAG based on its unsolicited proposal. As per the MoU, the company was required to submit the DPR within two years of receiving the license.

During the study, DIAG was asked to propose the most suitable technology—natural gas, electrolysis with carbon capture and storage, or a hybrid model combining both—for producing at least 700,000 tons of chemical fertilizers annually. The company has proposed to build the plant under a public–private partnership (PPP) model, with construction expected to take three and a half years.

As Nepal currently meets all of its fertilizer demand through imports, the crucial farm input often faces shortages during planting season due to supply constraints. The country’s annual demand for chemical fertilizers is estimated at around 700,000 tons. The government has allocated Rs 28.82bn in subsidies to procure 600,000 tons in the current fiscal year.

The German company has proposed to set up the plant at Bardaghat in Sarawal Rural Municipality, Nawalparasi West. The facility will cover 161.87 hectares and operate under the name DIAG Surya Green Fertilizer Pvt Ltd. According to an OIBN official, DIAG has estimated total investment at Rs 240bn.

The company has also outlined certain conditions, including a five-year tax holiday, a three-and-a-half-year construction period, guaranteed supply of 300 MW of electricity and the right to operate the plant for 30 years, among others.