The three-stage green hydrogen implementation plan envisions a 485 MW electrolyzer capacity by 2050, that will supply the country with over 70,000 tons of clean hydrogen per annum
Bhutan is preparing to launch its first hydrogen pilot project. The Department of Energy, under the Ministry of Energy and Natural Resources (MoENR), has unveiled plans for a pilot initiative aimed at reducing the country’s reliance on fossil fuels and advancing its carbon-neutral goals.
The announcement was made during a webinar hosted by the UNDP and MoENR, where a speaker from the Department of Energy outlined details of the ambitious hydrogen initiative, which will focus on decarbonizing the mobility sector. The pilot project will feature a 5 MW electrolyzer and an on-site refueling station.
With rising domestic electricity demand and increasing fossil fuel imports—especially in the transport and industrial sectors due to ongoing development and industrialization—the hydrogen project is viewed as a timely and strategic opportunity. “Renewable electricity sources such as hydropower can significantly reduce the cost of hydrogen production, as they provide a low-cost and environmentally friendly source of electricity,” said the Department of Energy official.
The speaker further highlighted the strategic importance of producing green hydrogen domestically, noting that it could significantly reduce Bhutan’s dependence on imported fossil fuels—especially in the transportation and industrial sectors, which are the primary consumers. “Fossil fuel imports have a considerable impact on Bhutan’s trade deficit, placing pressure on the economy,” the speaker said. “At the same time, Bhutan has made a strong global commitment to remain carbon neutral. In this context, investing in green hydrogen is not just an energy solution—it is an economic and environmental imperative. Recognizing hydrogen’s potential as a clean, locally produced alternative fuel, particularly for the transport sector, is critical to achieving both our sustainability and economic resilience goals.”
The pilot project will be built at Gidawom, near the Thimphu-Paro Highway. It will draw electricity from the Gidakom hydropower plant and be located near water sources such as Bjeme and Rongchu. In its first phase, the project will establish a 1 MW plant, with plans for future expansion to meet growing energy needs.
As part of the initiative, Bhutan will also procure hydrogen fuel cell buses and cars (FCEVs), with plans to scale up in the coming years. “These FCEVs will not only fulfill transport requirements but also serve as a demonstration, giving the public hands-on experience with hydrogen-powered mobility,” the speaker said.
Additionally, the official explained that the broader goal of the pilot project is to serve as a learning platform to enhance technical knowledge, skills, and capacity. “We aim to identify technical gaps and build public confidence in hydrogen technology, which is one of the core objectives of this pilot.”
The three-phase green hydrogen implementation plan envisions a total electrolyzer capacity of 485 MW by 2050, capable of supplying over 70,000 tons of clean hydrogen annually.
Key objectives of Bhutan’s hydrogen initiative include comprehensive strategic planning and the establishment of a resilient and efficient hydrogen supply and distribution infrastructure. These foundational elements are essential to support the long-term development of a sustainable hydrogen economy. In the short term, the project aims to produce approximately 710 tons of green hydrogen annually through a 5 MW electrolyzer. This initial phase will serve as a critical proof of concept, allowing stakeholders to gain technical experience and assess feasibility on a practical scale.
Looking toward the medium term, the focus will shift to scaling up operations through targeted interventions designed to stimulate the growth of the hydrogen sector. These efforts will include expanding production capacity, encouraging investment, fostering innovation, and creating an enabling policy and regulatory environment. This phase is intended to lay the groundwork for a broader hydrogen ecosystem, setting the stage for industrial integration and regional collaboration in the years ahead.
By 2040–2050, Bhutan envisions a thriving hydrogen economy supported by a comprehensive supply and distribution system. The speaker expressed confidence that Bhutan will be able to harness the full potential of hydrogen as a clean energy carrier.
Beyond fueling vehicles, the project will also feature hydrogen storage and refueling infrastructure to support hydrogen-powered transport. The Department of Energy intends for the pilot to serve as a testbed for building technical capacity, bridging knowledge gaps, and cultivating public trust in hydrogen solutions.
To support these ambitions, the Department has conducted resource mapping at key sites across Bhutan, including Jigmeling (Gelephu), Lhamoidzingkha (Dagana), Dhamdum (Samtse), and Samrang (Samdrupjongkhar). These locations have been identified for their potential to host large-scale hydrogen production facilities. For example, the Jigmeling plant alone could produce 300,000 tons of green hydrogen annually, though it would require an initial investment of USD 409 million.
The Department of Energy has been laying the foundation for the project with financial support from the United States Energy Association and technical expertise from consultants such as Tech and Roland Burja. Feasibility studies, market analyses, and a national hydrogen roadmap have already been developed.
Looking ahead, the Department plans to continue raising public awareness through outreach campaigns, media engagement, and community consultations. Efforts will also focus on building the necessary technical expertise and establishing regulations, safety codes, and standards to support Bhutan’s emerging hydrogen sector.
The hydrogen pilot project and the broader development of a green hydrogen economy form a vital part of Bhutan’s long-term strategy to maintain its carbon-neutral status while driving innovation and sustainability in the energy sector.
The webinar, which brought together hydrogen experts from around the world, highlighted the global potential of hydrogen—especially in transportation and industrial applications. Discussions also explored financing opportunities and the role of hydrogen in achieving global climate goals.
Nidup Lhamo from Thimphu
