KINLEY KHANDU CHODEN | Thimphu
Bhutan has no immediate plans to introduce Compressed Natural Gas (CNG) as an alternative transport fuel, opting instead to focus on developing green hydrogen and other renewable energy solutions that the government believes are better suited to the country’s long-term energy and environmental goals.
The government’s position was clarified by the Minister for Energy and Natural Resources, Lyonpo Gem Tshering, in response to questions on why Bhutan has not explored CNG despite its successful adoption in many Indian states, where it is widely used in public and private
transportation because of its lower cost and comparatively cleaner emissions.
According to the minister, Bhutan’s decision reflects the country’s unique circumstances rather than the merits of CNG itself.
Bhutan does not possess domestic natural gas resources, meaning any CNG programme would depend entirely on imported fuel.
Lyonpo Gem Tshering said such dependence would require the country to establish an entirely new fuel supply system while relying on external sources for its energy needs.
Introducing CNG would involve substantial investments in import infrastructure, transportation networks, storage facilities and refuelling stations. It would also require either converting existing vehicles to run on CNG or procuring new CNG-powered vehicles.
The minister said the economic feasibility of developing such infrastructure remains uncertain, particularly given Bhutan’s relatively small vehicle market and dispersed population.
“Establishing a CNG ecosystem would require significant investments,” the minister said, adding that the scale of the country’s transport sector makes it difficult to justify such expenditure.
Instead of investing in CNG infrastructure, the Ministry of Energy and Natural Resources has directed its attention toward renewable energy technologies that can be developed using Bhutan’s own natural resources.
Central to that strategy is green hydrogen, which is produced using renewable electricity generated from the country’s abundant hydropower resources.
The ministry believes green hydrogen offers a cleaner long-term energy pathway with potential applications across several sectors, including transportation, industry, electricity generation and energy storage.
Unlike CNG, which would rely entirely on imported natural gas, green hydrogen can be produced domestically. The minister said this supports Bhutan’s objective of strengthening energy security while advancing its climate and sustainability commitments.
To support this transition, the Department of Energy is implementing pilot projects to demonstrate the technical and commercial feasibility of green hydrogen technologies in Bhutan.
While hydrogen technologies are still developing and require relatively high upfront investment, the minister said they are increasingly recognised as an important future energy option, particularly for sectors where reducing emissions remains challenging.
The government is also exploring the production of Sustainable Aviation Fuel (SAF) from municipal solid waste as part of its broader renewable energy strategy.
According to the minister, the initiative aims to convert municipal waste into cleaner aviation fuel while promoting a circular economy by turning waste into a productive resource.
Although both green hydrogen and Sustainable Aviation Fuel remain emerging technologies, the government believes they offer greater long-term benefits than investing in imported fossil fuel infrastructure.
The minister said Bhutan’s renewable energy resources provide opportunities to develop cleaner domestic fuels that are better aligned with the country’s environmental objectives.
The government’s approach reflects its broader commitment to promoting renewable and zero emission energy carriers rather than expanding the use of fossil fuels.
While CNG produces fewer emissions than conventional petrol and diesel, it remains a fossil fuel.
The ministry believes Bhutan’s long-term energy transition should be built around renewable fuels that can be produced domestically using the country’s hydropower resources.
The minister said the government’s strategic focus therefore remains on advancing green hydrogen and other sustainable fuels that support Bhutan’s vision of a green, resilient and low carbon economy.
With pilot projects already underway and additional renewable fuel initiatives being explored, Bhutan is seeking to develop an energy pathway that capitalises on its renewable resources while reducing dependence on imported fuels over the long term.
