DHI exploring partnerships with global leaders in Green Hydrogen, while pursuing to make innovation a pillar of the economy
To achieve energy self-sufficiency and reduce reliance on imported fossil fuels, the Department of Energy under the Ministry of Energy and Natural Resources launched the National Green Hydrogen Roadmap on July 24, 2024. This initiative aims to produce 710 tonnes of green hydrogen annually for domestic use by 2030 and 70,000 tonnes by 2050. Previously, the Royal Government introduced a Green Hydrogen Policy as part of the Sustainable Hydropower Development Policy 2021.
An official from Druk Holding and Investments (DHI) stated that Bhutan’s competitively priced electricity offers a significant opportunity to produce green hydrogen and derivatives like green ammonia. Given the limited domestic applications for hydrogen, however, large-scale production should target foreign markets. DHI is actively exploring partnerships with global leaders in this field.
Meanwhile, DHI is also working to make innovation a vital pillar of Bhutan’s economy.
Green hydrogen, produced by electrolyzing water with renewable energy, is a clean, sustainable energy source with potential to enable a low-carbon future. Unlike hydrogen derived from fossil fuels, green hydrogen can help decarbonize sectors such as transportation, industry, and power generation, making it critical in reducing greenhouse gas emissions and combating climate change.
Its versatility enables applications in fuel for trains, building heating, fertilizer production, energy storage, and electricity generation. Recognizing these advantages, countries are investing in green hydrogen to create resilient energy systems and reduce emissions in ‘hard-to-abate’ sectors. Developing green hydrogen and fuel-cell-based mobility can also cut fossil fuel imports, supporting Bhutan’s carbon-neutral goals. “For Bhutan, with its abundant hydropower, a hydrogen economy aligns naturally with its climate commitments,” the National Green Hydrogen Roadmap states.
Meanwhile, DHI is also investigating geothermal technology. “Geothermal is well-established globally but still being explored in Bhutan. Green hydrogen, on the other hand, is an emerging technology that is rapidly advancing but remains in the early stages of adoption. This sector is primarily supported by governments, though international trade in green hydrogen and its derivatives is still limited,” the DHI official noted.
Discussing innovation, the official emphasized that economic resilience in a changing world requires diversifying Bhutan’s economic base. Although resource-rich nations may focus on extraction, this approach is increasingly unsustainable. “Science, technology, and innovation (STI) provide the solutions we need. By committing to STI, we can better manage resources and create new industries, ultimately strengthening our economy,” the official said.
While hydropower, agriculture, and tourism have been Bhutan’s economic cornerstones, the aim is to establish “Innovation” as an additional pillar, leveraging science and technology with an emphasis on both fundamental and applied research. “Our goal is to foster a start-up ecosystem in Bhutan, cultivating an entrepreneurial mindset to build next-generation industries that generate impact and value.”
Innovation was a major theme at the three-day Bhutan Innovation Forum (BIF) held in Pangbisa, Paro, starting on October 1, 2024. DHI’s CEO, Ujjwal Deep Dahal, shared a vision of innovation joining agriculture, hydropower, and tourism as a foundational sector. Drawing on examples from Silicon Valley and Serbia, Dahal underscored the importance of a “quadruple helix” model—collaborating with government, industry, entrepreneurs, and academia to foster innovation-based industries in Bhutan.
Alex Fishman, founder of Empros Capital, highlighted Bhutan’s unique potential as an innovation-driven economy, noting that its existing infrastructure, including reliable energy and internet, is sufficient for building an entrepreneurial ecosystem. He suggested that top engineers and entrepreneurs could be attracted to Bhutan, where they could work and collaborate, sharing their expertise with local talent. Fishman recommended that Bhutan engage these talents as co-investors in new ventures.
Fatine Layt, President of LionTree’s European Capital Coverage, saw Bhutan’s opportunity to develop a “platinum economy,” positioning itself as an exclusive luxury destination focused on wellness, mindfulness, and high-tech research. She highlighted the need for a strong, coherent narrative to attract investors and differentiate Bhutan from other markets.
Evan Spiegel, Co-Founder and CEO of Snapchat, reflected on his experience with innovation, noting how competition had driven Snapchat’s success. He stressed the importance of nurturing creativity and overcoming the fear of failure in an innovation-driven economy.
In an innovation economy, growth is fueled by knowledge, entrepreneurship, and collaboration, transforming ideas into valuable products, services, and business models.
By Ugyen Tenzin, Thimphu