The plant will produce 60MT of charcoal monthly

Thukten Zangpo

Bhutan’s first charcoal plant, KC Charcoal and Briquettes, located in Lichen, Trashiyangtse, will commence operation in November this year, producing 60 metric tonnes (MT) of charcoal every month.

The plant, which currently has two installed machines, has plans to expand production capacity by installing a total of 16 machines.

Charcoal is one of the major inputs used as fuel for heating and as reductant by ferro-silicon industries in the country. It is also used for cement blending in the cement industries.

Currently, Bhutan relies heavily on imported charcoal. Last year, the country imported 34,301MT of charcoal worth Nu 57.68 million. The charcoal import was 134,762MT worth Nu 2.78 billion in 2021.

The chief executive officer of the KC Charcoal and Briquettes, Kinzang Choden, along with her husband, started the project in 2022.

Recently, the plant received the green signal for commercial production, following the successful testing of its charcoal, which showed  84.54 percent carbon content, along with desirable ash and moisture levels.

The ideal charcoal for the use in the ferrosilicon production requires a carbon content of at least 65 percent.

Kinzang Choden said that her primary objective for establishing the plant is to substitute import of charcoal and consequently reduce outflow of foreign currency from the country.

She said that raw materials for production are readily available, with lops and tops of trees also being utilised. While there isn’t a specific tree species mandated for production, alder  species is preferred.

The initial phase includes two machines, but the facility can accommodate up to 16 machines. With this full installation, the plant could produce 16 MT of charcoal daily, amounting to 480 MT monthly.

Currently, the plant employs eight people, but this number will rise to around 60 once production is fully ramped up.

For the procurement of additional 12 machines, Kinzang Choden said that the company has put up a loan proposal under the economic stimulus programme credit. The procurement of these machines require a capital of Nu 250 million.

The process of charcoal production also produces by-products like tar, wood vinegar, ash, and biochar.

With no market of tar and wood vinegar in the country, the company plans to export the products, including the briquettes. However, the organic biochar can be used for agricultural purposes which will improve soil quality. “If the government supports us, we want to go for commercial production,” Kinzang Choden said.

Compared to the cheaper cost of the imported charcoal, Kinzang Choden said that the locally produced charcoal is of superior quality because the raw materials are dried for a month to maintain a moisture content of at least 15 percent, unlike imported options.