Bhutan

In 2021, Bhutan exported $35.2k in Hydrogen, making it the 121st largest exporter of Hydrogen in the world. At the same year, Hydrogen was the 67th most exported product in Bhutan. The main destination of Hydrogen exports from Bhutan are: India ($35.2k).The fastest growing export markets for Hydrogen of Bhutan between 2020 and 2021 were India ($25.1k). [2]

In 2021, Bhutan imported $66.3k in Hydrogen, becoming the 185th largest importer of Hydrogen in the world. At the same year, Hydrogen was the 519th most imported product in Bhutan. Bhutan imports Hydrogen primarily from: India ($66.3k).

 

Bhutan, a nation synonymous with sustainability and Gross National Happiness (GNH), is exploring a new frontier: green hydrogen. While a dedicated hydrogen policy framework remains under development (as of February 2024), Bhutan's initiatives suggest a proactive approach towards embracing this clean energy source.  

 

Embracing Green Hydrogen:  

Bhutan's focus leans towards green hydrogen, produced through electrolysis using renewable energy, aligning with their commitment to sustainability and carbon neutrality. The Bhutan Green Hydrogen Roadmap (2023) [3] lays out a strategic framework for building a green hydrogen economy. This roadmap aims to:  

• Identify potential domestic and export markets for green hydrogen.

• Develop the necessary infrastructure for production, storage, and transportation.

• Establish regulatory frameworks supporting hydrogen development and usage [4]  

Hydrogen Policy Framework
The launch of the Green Hydrogen Roadmap signifies Bhutan's commitment to building a regulatory framework that supports their sustainability goals. Collaborations with entities like the United States Energy Association demonstrate their efforts in exploring best practices and developing a sound framework.
Developing a comprehensive hydrogen policy framework necessitates addressing crucial aspects:
•    Safety regulations governing production, storage, and utilization.
•    Origin guarantees ensuring the green credentials of the hydrogen used.
•    Market facilitation through incentives and streamlined permitting processes.
While Bhutan's hydrogen policy is nascent, the country's proactive measures – the Green Hydrogen Roadmap and international collaborations – reveal a clear intention to explore green hydrogen for energy diversification and enhanced sustainability. Observing how Bhutan's hydrogen policy evolves in the coming years, contributing to its unique approach to development and environmental responsibility, will be fascinating.

Bhutan, a champion of sustainability and carbon neutrality, is exploring the potential of green hydrogen for its energy future. However, a specific and established hydrogen regulatory framework is still in its development stage (as of February 2024).  

Current Landscape:  

• Bhutan Green Hydrogen Roadmap (2023): This roadmap lays the groundwork for developing a green hydrogen economy in Bhutan. It identifies potential markets, outlines infrastructure development needs, and emphasizes the crucial role of a regulatory framework.

• Focus on Green Hydrogen: Bhutan prioritizes green hydrogen, produced solely through renewable energy sources, primarily hydropower, aligning with their commitment to sustainability.

• Limited Regulations: As the technology is still in its early stages in Bhutan, specific regulations governing hydrogen production, storage, transportation, and safety are still under development.

Expected Outcomes:  

The Green Hydrogen Roadmap is expected to pave the way for the establishment of a comprehensive hydrogen regulatory framework, encompassing:  

• Incentives: To promote green hydrogen production and infrastructure development.

• Safety Regulations: To ensure safe handling, storage, and usage of hydrogen.

• Standards and Certification: To guarantee transparency and the green credentials of hydrogen produced and consumed.

• Market Facilitation: To encourage the adoption of hydrogen in various sectors through streamlined permitting processes and financial support.

 

Overall, while a defined hydrogen regulatory framework in Bhutan remains in its early stages, the country's proactive approach through the Green Hydrogen Roadmap demonstrates their commitment to exploring this clean energy source for a sustainable future. It will be interesting to witness how Bhutan's policy framework evolves in the coming years, contributing to their unique approach to development and environmental responsibility.  

• Hydropower: Currently, hydropower is the dominant renewable energy source, contributing almost 100% of Bhutan's electricity generation. The country possesses a theoretical potential of 12 gigawatts (GW) of hydropower, but only a fraction is currently harnessed.

• Other Renewables: Bhutan also has significant potential for solar and wind energy. Studies estimate a technical potential of 760 megawatts (MW) for wind power and 12 GW for solar power. However, these resources are still largely untapped due to limited infrastructure and investment.

 

Challenges and Opportunities:  

Developing infrastructure is crucial for harnessing its abundant renewable energy potential. This includes:

• Building transmission lines to connect remote areas with the national grid.

• Investing in storage solutions to manage the intermittent nature of solar and wind energy.

• Improving rural road networks to facilitate the transport of equipment and materials for renewable energy projects.

Balancing development and environmental protection: While infrastructure development is crucial, it's essential to ensure it happens in a sustainable manner, minimizing environmental impact.

Bhutan faces both challenges and opportunities in its pursuit of sustainable development. By strategically developing its infrastructure while harnessing its renewable energy potential, the country can achieve its ambitious goals of economic growth, energy security, and environmental responsibility.  

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• Bhutan is expected to attract domestic and international investments in the coming years as the green hydrogen sector develops.

• The government's commitment to sustainability, coupled with its abundant renewable energy resources and strategic roadmap, create a favourable environment for potential investors.

While Bhutan holds immense potential for green hydrogen development, as of February 2024, no specific investment announcements for green hydrogen projects have been officially made. However, several initiatives indicate their strong interest and ongoing exploration:

While specific investment announcements in Bhutan's green hydrogen sector are still awaited, the country's proactive approach through the Green Hydrogen Roadmap, international collaborations, and its inherent renewable energy potential position it as a promising player in the future of green hydrogen development.