Overview – On World Environment Day 2025, the SAARC Development Fund (SDF) and the Bhutan Ecological Society (BES) launched one of Bhutan’s first utility-scale biogas initiatives titled the “Production of Commercial Biogas from Household Waste.”
This landmark project aims to transform urban organic waste into clean biogas and organic fertilizer, reducing dependence on imported liquefied petroleum gas (LPG) while addressing Bhutan’s growing energy needs.
Key Highlights
Duration: 2 years
Total Budget: Nu. 81.1 million (USD 948,616)
SDF Grant: USD 448,616
Co-funding: Bhutan Trust Fund for Environmental Conservation & Value Network Ventures
Implementing Partner: Bhutan Ecological Society (BES)
Key Collaborators: Department of Environment and Climate Change & Thimphu Municipality (Thromde)
Project Goals
Establish a 20-ton-per-day biogas plant on the outskirts of Thimphu; Generate 250 tons of biogas annually (equivalent to replacing ~17,490 LPG cylinders) and 990 metric tons of organic fertilizer annually to support sustainable farming.
Divert 6,600 tons of organic waste from landfills each year.
Reduce 3,595 tonnes of CO₂ emissions annually.
Promote affordable energy—biogas is projected to cost ~3% less than subsidized LPG and ~25% less than unsubsidized LPG.
Operational Model
Waste Collection: Thimphu Municipality will collect organic waste from households, restaurants, and vegetable markets.
Processing: Waste will be converted into biogas and organic fertilizer at the new facility.
Distribution: BES will manage a dealer/agent network to deliver products to households and businesses.
Voices from the Launch:
“By transforming waste into energy, this project is a powerful example of how regional cooperation and local action can drive sustainable development.” – Ms. Irosha Cooray, Officer-In-Charge, SDF.
“This is a strategic step toward Bhutan’s energy transition. Biogas is not only cleaner but also more affordable than LPG.” – Dr. Norbu Wandgi, Officiating Executive Director, BES.
Next Steps: A two-day inception workshop (9-10 June 2025, SDF Secretariat, Thimphu) brought together implementing partners and technical experts to finalize project components and operational strategies.
Regional Impact: The project is designed as a scalable model for other SAARC Member States, addressing shared challenges in waste management, energy security, and climate resilience.
“What we are launching today in Bhutan is not just a project, it is a regional inspiration.”
— Ms. Irosha Cooray, OIC, SDF
