April 7, 2025
THIMPHU – The country’s first green hydrogen pilot plant, located in Gidawom near the Thimphu-Paro highway, is expected to begin with a 1-megawatt (MW) facility and scale up to a 5-MW electrolyzer with on-site refueling infrastructure.
This is part of USD 395 million green hydrogen strategy to support the decarbonisation of transport and industrial sectors in the country by 2050.
Green hydrogen refers to a clean and sustainable energy source produced through electrolysis of water using renewable energy. Unlike other types of hydrogen, which are produced from fossil fuels, green hydrogen has plays a pivotal role in low-carbon energy transition.
The project, presented during a discussion on “Exploring Green Hydrogen Potential in Bhutan” yesterday, organised by the United Nations Development Programme (UNDP) and the Ministry of Energy and Natural Resources (MoENR). This marks a strategic shift in the country’s clean energy ambitions—from traditional hydropower to hydrogen fuel technologies as an complementary sources of energy.
The initiative follows the launch of Bhutan’s National Hydrogen Roadmap on July 24, 2024, in Thimphu. The roadmap was first introduced during the COP28 climate summit in Dubai in December 2023.
Dechen Dema, executive engineer at Department of Energy, MoENR said that the green hydrogen in Bhutan will create new employment opportunities in the renewable energy sector, contribute to economic growth, ensure a cleaner environment, strengthen industrial
Green hydrogen in Bhutan is feasible investment due to the competitive cost of renewable electricity. Renewable electricity sources such as hydroelectric power will reduce the cost of hydrogen production offering a low-cost and environmentally viable source of electricity.
“Using domestically produced green hydrogen can help reduce the country’s heavy dependence on imported fossil fuels, especially in the transport and industry sector,” she said.
Considering the implication on overall trade with high import of fossil fuel and Bhutan’s carbon neutrality, she said, it is crucial to recognise the potential of hydrogen as an alternative fuel across various sectors.
Hydrogen technologies are suited to balance demand and supply in electricity grid that increasingly rely on variable sources such as solar and wind. Moreover, it helps in reduction of carbon emissions along with providing a pathway to eliminate nitrous oxides, sulphur oxides and pollution due to burning of fossil fuels.
“Bhutan will establish a hydrogen economy by emphasising demand creation involving strategic planning, robust supply and distribution infrastructure for hydrogen,” she said.
The roadmap targets mobility, industry, power generation and export as prospective channels for the utilization of Bhutan’s green hydrogen, with a focus on sustainable growth and cutting greenhouse gas emissions in all sectors.
The government projects that 2,700 vehicles will be powered by hydrogen by 2030, rising to 45,000 vehicles by 2050.
“Emerging industries such as ferro-alloys, steel and cement production requires large amount of energy—proper utilization of green hydrogen has the potential of addressing the domestic needs,” Dechen Dema said.
The availability of competitive and renewable electricity from hydropower plant, most of which are exported to India at present, also provides a relative advantage for Bhutan in producing cost-effective green hydrogen.
Resource mapping at four sites: Jigmeling plant (30,000 tonnes of hydrogen), Lhamoizingkha plant (7,500 tonnes), Dhamdum plant (7,500 tonnes) and Samrang plant (3,750 tonnes) have been carried out to expand green hydrogen. These sites were chosen based on land availability, infrastructures, water resources and developmental plans in the area.
The Power System Master Plan 2040 estimates a hydropower potential of 36,900 MW, of which 32,600 MW is deemed techno-economically viable. Much of this electricity is currently exported to India, but officials say some of it could be redirected to power hydrogen production at home.
As per the Hydrogen Roadmap of Bhutan 2024, the country’s three-stage green hydrogen implementation plan envisions a 485 MW electrolyzer capacity by 2050, which will supply over 70,000 tonnes of clean hydrogen annually. This will require an investment of US Dollar 8 million by 2030, USD 145 m until 2040, and USD 395 m by 2050.
Riad Meddeb, director of the Sustainable Energy Hub, UNDP said that with growing momentum for low-emission, green hydrogen has potential advantage. “In 2023, 97 million tons of green hydrogen was produced globally. However, only 1 percent was produced from low-emission sources.”
Currently, 58 countries have national hydrogen strategies compared to just four in 2020.
The roadmap identifies key opportunities across production, storage, distribution, and end-use applications—setting a national milestones and targets to ensure a sustainable and resilient energy future.
The levelized cost of hydrogen is projected to be between USD 2.6 and USD 4.3 per kilogram (kg) in the short term, with expectations to decrease to USD 2.2 to USD 3.1 per kg due to advancements in electrolyzer technology and economies of scale.
Bhutan’s strategic location in South Asia provides proximity to large and expanding markets for hydrogen. Exporting green hydrogen will not only help reduce global carbon emissions but also present an opportunity to improve Bhutan’s trade balance and strengthen its economy.
Between December 2021 and 2024, the Department of Energy has conducted a comprehensive value chain analysis, feasibility studies for the Gidawom site, market assessments, and developed a national outreach strategy to build stakeholder awareness.