Bangladesh Textile Industry Grapples with Energy Crisis

The Bangladesh textile industry is facing an energy crisis due to high gas costs and supply disruptions. The sector, which employs four million people and produces 80% of the country's exports, relies heavily on gas for its wet processing operations. However, a fire at one of the two LNG terminals last month cut supply to just over half of demand.

Industry leaders are now looking for alternative energy sources, with some factories turning to compressed natural gas or diesel to meet urgent orders. Others, like Fazlul Hoque, managing director of Plummy Fashions, are considering switching to electrification and biomass. However, Dr Laxmikant Jawale from the Apparel Impact Institute notes that biomass cannot be a sector-wide solution due to logistics and infrastructure issues.

Other solutions include installing electric boilers and heat pumps, which could cut energy use by up to 45%. However, these would require significant investment and grid access. The government is urged to step up and provide support for the industry to adopt renewable energy and explore domestic gas fields to boost local supply.