In a significant move towards a greener future, Bhutan’s Ministry of Energy and Natural Resources has launched the National Green Hydrogen Roadmap, aiming to revolutionize the country’s energy landscape and reduce its carbon footprint. Announced on July 24, the roadmap sets ambitious targets for green hydrogen production, setting the stage for a substantial shift towards renewable energy sources.
The new strategy envisions Bhutan producing 710 tonnes of green hydrogen annually by 2030, with plans to scale up to 70,000 tonnes by 2050. Green hydrogen, a clean and efficient energy source, can be stored in both liquid and gas forms. It is derived from renewable resources like solar, wind, hydro, and biomass, and holds promise for diverse applications ranging from e-fuel for locomotives to electricity generation and industrial processes.
The National Green Hydrogen Roadmap is designed to leverage Bhutan’s competitive advantage in renewable electricity generation. By focusing on green hydrogen, Bhutan aims to enhance its energy security, reduce trade imbalances, and establish a more diverse and resilient energy system while maintaining its commitment to carbon neutrality.
As part of this initiative, a five-megawatt green hydrogen plant will be built near the Gidakom Mini Power Plant. This facility will cater to the growing demand for fuel cell vehicles, positioning Bhutan as a pioneer in hydrogen technology in the region.
Looking ahead, Bhutan plans to develop its first hydrogen export routes by 2030, targeting major Asian markets, particularly China and India. The strategic location of Bhutan in South Asia provides a promising opportunity to tap into the burgeoning hydrogen market in the region.
Globally, approximately 120 million tonnes of hydrogen are produced annually, with China leading in both production and consumption. The International Renewable Energy Agency forecasts that hydrogen could fulfill up to 12 percent of global energy needs by 2050, potentially cutting carbon dioxide emissions by 10 percent.
The National Green Hydrogen Roadmap was initially introduced at the 28th Conference of Parties and underscores Bhutan’s long-standing dedication to carbon neutrality as part of its commitments under the United Nations Framework Convention on Climate Change (UNFCCC) since 1992. The roadmap highlights Bhutan’s focus on sustainable development, food security, human settlements, and surface transportation.
The roadmap also identifies key challenges, including domestic demand limitations, technical expertise shortages, financial constraints, and the need for a robust regulatory framework. Bhutan’s energy consumption is projected to increase sixfold by 2050, with the transportation sector identified as a major greenhouse gas emitter. The country plans to counterbalance this by promoting electric vehicles and enhancing public transportation infrastructure.
Bhutan’s efforts have already surpassed the Paris Agreement’s carbon-neutrality goals. In 2015, Bhutan sequestered 9.4 million tonnes of carbon dioxide equivalent (CO2e) while emitting only 3.8 million tonnes CO2e, achieving a net carbon sink balance of 5.6 million tonnes CO2e.
To fully implement the National Green Hydrogen Roadmap, an estimated USD 3.44 billion in investments is needed by 2030, as outlined in Bhutan’s second Nationally Determined Contributions (NDCs). Key agencies involved in the roadmap’s execution include Druk Holding and Investments, Druk Green Power Corporation, Bhutan Power Corporation, the Electricity Regulatory Authority, Bhutan Construction and Transport Authority, and the Bhutan Power System Operator.
Bhutan’s bold step towards green hydrogen not only underscores its commitment to a sustainable future but also sets a precedent for other nations in the quest for innovative and environmentally friendly energy solutions.