Integration of Green Hydrogen as a Kiln Fuel in Bhutan’s Cement Industry: A Feasibility Study

Ram Dahal

Bhutan’s cement industry plays a significant role in national development but remains heavily dependent on coal-fired kilns for clinker production, which conflicts with Bhutan’s constitutional commitment to carbon neutrality. This study evaluates the feasibility of integrating green hydrogen as a kiln fuel through a case study approach. Using a mixed methods framework that combines case analysis, expert interviews and feasibility analysis based on available data, the research explores the technical, economic, infrastructural and policy dimensions of the green hydrogen production for the hard-to-abate cement industry sector. The findings indicate that while the integration of green hydrogen is technically feasible, it is currently not economically and infrastructurally viable. Based on regional price estimates of green hydrogen in Asia (USD 6.95-7.2/kg), and the current proposed hydrogen site at Gidawom, Thimphu, this study finds that the cost of cement will increase between thirteen to fifteen times, making it noncompetitive under the current conditions. Bhutan’s challenging geographical terrain and limited industrial scale and market size further limit its feasibility. This study concludes that hydrogen alone cannot serve as a standalone decarbonisation solution. Complementary strategies such as clinker substitution, process efficiency, biomass and refuse-derived fuels (RDF) important in reducing CO2 emission as well as alternatives to cement need to be explored as a holistic approach to reducing greenhouse gas. This research recommends initiating a modular hydrogen plant at the cement factory, phase-wise hydrogen transition strategy, developing hydrogen policy acts, carbon credits and financial incentives to make green hydrogen integration both economically and logistically viable in Bhutan.

Integration of Green Hydrogen as a Kiln Fuel in Bhutan’s Cement Industry: A Feasibility Study

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