Thimphu, Bhutan, 05 June 2025 – In observance of World Environment Day, the SAARC Development Fund (SDF) and Bhutan Ecological Society officially launched one of the first utility-scale biogas projects, “Production of Commercial Biogas from Household Waste”, aimed at transforming urban organic waste into clean energy and biofertilizer.
The initiative is a key step toward meeting rising energy demands in urban areas by encouraging a shift from liquefied petroleum gas (LPG) to biogas for cooking and heating.
The two-year project has a total budget of approximately Nu. 81.1 million (USD 948,616) with USD 448,616 grant funded by the SDF. The remaining fund is co-funded by the Bhutan Trust Fund for Environmental Conservation and the Value Network Ventures.
The project is implemented by the Bhutan Ecological Society (BES) in partnership with the Department of Environment and Climate Change and the Thimphu Municipality Office. The project will establish a 20-ton-per-day (TPD) biogas plant on the outskirts of Thimphu, the first of its kind in Bhutan, designed to supply approximately 250 tons of biogas annually—replacing an estimated 17,490 LPG cylinders. Additionally, the plant will produce around 990 metric tons of organic fertilizer per year, encouraging sustainable farming practices.
“We are proud to support this innovative project that contributes to a cleaner and more energy- processing household organic waste into commercial canned biogas and biofertilizers,” said Ms. Irosha Cooray, the Officer-In-Charge of the SAARC Development Fund. “By transforming waste into energy, this project is a powerful example of how regional cooperation and local action can drive sustainable development across our region.”
Dr Norbu Wandgi, the Officiaiting Executive Director of the Bhutan Ecological Society, echoed the project’s long-term value: “This project is a strategic step toward Bhutan’s energy transition. Compared to imported LPG, biogas will cost ~3% less than subsidized and ~25% less than unsubsidized LPG, making it a more affordable and climate-friendly choice. We are grateful to SDF for their support and excited to work closely with our partners and the local community.”
The initiative will also divert an estimated 6,600 tons of organic waste from landfills annually, reducing pressure on urban waste systems and contributing to the reduction of approximately 3,595 tonnes of CO₂ emissions each year—in alignment with Bhutan’s environmental goals.
Operational and commercial sustainability are at the heart of the project. The Thimphu Municipality (Thromde) will be responsible for collecting organic waste from households, restaurants and vegetable markets, and delivering it to the biogas facility. The biogas and biofertilizer products will be distributed through a dedicated network of dealers and agents managed by BES, targeting both households and local businesses in Thimphu.
To ensure the project’s effective implementation, a two-day inception workshop will be held from 9–10 June 2025 at the SDF Secretariat in Thimphu. During the workshop, project components will be reviewed in detail in collaboration with the implementing agency, government stakeholders, and technical experts.
SDF and BES hope this project will inspire similar efforts across South Asia—fostering partnerships, sharing knowledge, and accelerating the region’s transition to cleaner, more sustainable energy solutions.
“What we are launching today in Bhutan is not just a project. It is a regional inspiration, “ said OIC Ms Cooray. “We are keen to see such models replicated across SAARC Member States, where urban centres face similar challenges in waste management, energy security and climate resilience.”
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About SAARC Development Fund – The SAARC Development Fund, established during the Sixteenth SAARC Summit in 2010, is the umbrella financial institution for regional projects and programs. Aligned with the SAARC Charter, SDF aims to promote the welfare of people across South Asia by fostering economic growth, social progress, and poverty alleviation. SDF has a capital base of over USD 701 million and focuses on strengthening project collaboration among its member states through its social, economic, and infrastructure funding windows.
About Bhutan Ecological Society – We are a not-for-profit organization that connects education, science, praxis, business, and policy with the goal of sustaining resilient communities and functional landscapes while nurturing the next generation of environmental leaders. We deliver cutting-edge field-based environmental education in partnership with the Royal University of Bhutan and the School for Field Studies in the US. We consider climate change as one of the most distressing and urgent issues facing our generation. We believe that education along with innovative, system-wide transformation of the energy, food, water, and forestry sectors will help create jobs, secure prosperity, and build nature-positive and carbon-negative economies. Underpinned by science and evidence, we restore landscapes, champion renewables, help secure water and food, and reduce waste and GHG emissions. We help sustain a better world.
For Media Inquiries, please contact: Phuntsho Choden, Manager, Communications & Knowledge Management, SAARC Development Fund at phuntshochoden@sdfsec.org
