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Laos Eyes Hydrogen-Roasted Coffee to Lift Exports, Cut Emissions by 2027

This Week

Laos is advancing to transform its coffee sector by 2027, shifting the focus to higher value, cleaner production, and stronger access to international markets. The effort centers on the Bolaven Plateau, the country’s primary coffee-growing region.

Coffee remains one of Laos’ leading agricultural exports, generating more than USD 200 million annually. However, developers say the next phase is less about increasing volume and more about quality, branding, and long-term sustainability.

To explore how emerging technology and investment could reshape Lao coffee’s future, The Laotian Times spoke with Ryutaro Nishio, representative of Lao Green Hydrogen (LGH), and Toshihiro Mochizuki, Managing Director of Pakse-Japan SME SEZ Development Co., Ltd. (PJSEZ), where a hydrogen-roasted coffee plant is currently on the way.

Hydrogen roasting and value creation

Lao producers, authorities, and Japanese-led LGH inspecting coffee hydrogen technology. (Picture by LGH)

A key part of the expansion plan is hydrogen-powered coffee roasting, developed through cooperation between Lao producers, authorities, and Japanese-led LGH.

Nishio said “At LGH, we are planning to purchase up to 6,000 tonnes of green beans per year and produce around 5,000 tonnes of roasted coffee annually in the future. This is not only an investment in roasting capacity, but a way to create long-term, stable demand.”

Unlike traditional roasting, hydrogen roasting uses green hydrogen and produces only water as a by-product. Nishio continued “When hydrogen is used, the only result of combustion is water, allowing production to scale while keeping environmental impact low.”

Clean Coffee, Beyond Emissions

Clear, smooth cup with fewer unwanted notes of coffee, making the natural characteristics of Lao coffee and its origin to stand out. (Picture by Laos Coffee)

For Nishio, “clean coffee” goes beyond just lower carbon emissions, it is also cleanliness in taste, a concept that bridges environmental responsibility with consumer experience.

From a flavor perspective, hydrogen roasting reduces combustion-related impurities and allows for more stable roasting conditions. He stated “This helps produce a clear, smooth cup with fewer unwanted notes and allows the natural characteristics of Lao coffee and its origin to stand out.”

The technology improves stability and helps with flavour-loss, potentially extending shelf life. 

Nishio added, “In that sense, clean coffee is something you can experience, not just explain in theory.”

This experiential quality could prove decisive in premium markets, where consumers increasingly seek transparency and distinctive taste characteristics alongside sustainability credentials.

Hydropower and Cost Advantage

Nam Theun 1 Hydropower containing Laos’ abundant hydropower. (Picture by ASEAN Briefing)

Laos’ abundant hydropower plays a central role in making hydrogen roasting feasible at scale. The country generates approximately 80 percent of its electricity from hydropower, providing one of the lowest electricity costs in the region. Low electricity costs help keep hydrogen production affordable, supporting cleaner processing without sharply raising costs.

Nishio confirmed “One reason this technology suits Laos, because it allows coffee to remain price-competitive while meeting rising expectations around sustainability.”

Bolaven Plateau and growing investor interest

the Bolaven Plateau coffee field, which shaped by its volcanic soil, cool climate, and high-altitude growing conditions. (picture by TripJive)

At PJSEZ in Champasak Province, developers said Bolaven Plateau coffee offers strong appeal for international partners.

Mochizuki said “We understand that Bolaven Plateau coffee is shaped by its volcanic soil, cool climate, and high-altitude growing conditions. It offers bright, citrusy and floral Arabica, as well as smoother Robusta, supported by smallholder farmers and cooperative-driven quality.”

The plateau, situated at elevations between 1,000 and 1,350 meters above sea level, provides ideal conditions for coffee cultivation. Its volcanic soil, rich in minerals, combined with consistent rainfall and moderate temperatures, creates distinct flavor profiles that specialty roasters value.

PJSEZ has attracted LGH to establish a hydrogen-roasted coffee plant in the zone since 2024, with construction currently underway and Lao coffee’s international presence is also already growing as well.

He explained that Lao coffee was rarely available in Japan a decade ago, but has since become easier to find, with its recognition steadily increasing. He noted, “Hydrogen-roasted coffee can maintain its original taste and aroma longer compared to general coffee products.”

Markets, challenges, and the road to 2027

Developers believe the combination of clean production and improved quality could help Lao coffee reach higher-end and new international markets, particularly in Japan, Europe, and North America where sustainability standards are becoming increasingly stringent.

Nishio explained “International markets increasingly care about decarbonisation, but what ultimately determines repeat purchases is taste and quality. By combining Lao origin, green hydrogen, and clean taste, we believe recognition and brand value can improve significantly.”

The European Union carbon border adjustment mechanism and similar regulations in other markets are expected to favor products with verifiable low-carbon production methods, potentially giving hydrogen-roasted Lao coffee a competitive edge.

Meanwhile, looking ahead to 2027, PJSEZ expects coffee to play a growing role in export growth and regional development in southern Laos, creating employment opportunities and supporting rural livelihoods.

Mochizuki mentioned “We see opportunities through sustainable production, value addition using new technologies like hydrogen roasting, and better international market access.” 

He also highlighted ongoing challenges: “Key issues include inconsistent quality, high logistics costs, climate change, and the need for technical training, certification, and infrastructure.”

These issues are common in developing coffee origins, with quality gaps linked to limited equipment and training, Laos’ landlocked location raising transport costs, and climate change causing unpredictable weather.

What Success Looks Like for local and farmers

Farmers and local people harvesting coffee in Bolaven Plateau. (Picture by Council on Smallholder Agricultural Finance.)

Despite these difficulties, both sides see long-term potential for communities and farmers.

Nishio noted “For communities on the Bolaven Plateau, success means having reliable buyers and coffee farming established as a long-term, sustainable industry.”

He also added “For farmers, the most important thing is having clear buyers and having their quality properly recognised. Production growth and value creation need to progress at the same time.”

This dual focus on volume and quality reflects lessons from other coffee-producing regions, where market access alone has proven insufficient without corresponding investments in quality improvement and farmer education.

Mochizuki echoed that view, saying the future of Lao coffee depends on linking quality production with long-term market access.

He stated “As foreign investment advances, Lao coffee will continue to expand its presence in Japan, Europe, and the United States.” Meaning, with stable demand, improved processing, and stronger recognition of Bolaven Plateau coffee would help establish the sector as a sustainable driver of regional development.

The success of this hydrogen roasting initiative may also serve as a model for other agricultural sectors in Laos seeking to add value domestically while meeting international sustainability expectations. 

As global coffee consumption continues to grow, projected to reach 200 million bags by 2030, Laos’ strategic positioning at the intersection of quality, sustainability, and competitive pricing could prove increasingly valuable.

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