Bangladesh’s textile and ready made garment (RMG) industry, the backbone of the nation’s economy, is facing one of the most serious energy crises in its history. Persistent shortages of natural gas, declining pipeline pressure, and disruptions in liquefied natural gas (LNG) imports have significantly reduced industrial production, delayed new investments, and weakened the country’s export competitiveness. As factories struggle to maintain regular production, the crisis has highlighted the urgent need to diversify industrial energy sources. Among the available alternatives, biomass, particularly paddy husk and sawdust, has emerged as one of the most practical, sustainable, and immediately available solutions.
The textile and RMG sector contributes more than 80 percent of Bangladesh’s export earnings and supports nearly 11 million people through direct and indirect employment. In recent months, textile manufacturers in Narayanganj, Gazipur, Savar, Ashulia, and Chattogram have repeatedly reported that gas pressure has fallen well below operational requirements. Many factories receive gas at only 1 to 2 PSI, whereas at least 10 PSI is required for industrial boilers to operate efficiently. This insufficient pressure has made it difficult to run boilers, generators, and production lines at their intended capacity, forcing manufacturers to reduce production or temporarily suspend energy intensive operations.
The magnitude of the shortage has become alarming. Following disruptions in LNG imports, national gas availability declined from about 2,620 million cubic feet per day to nearly 2,170 million cubic feet per day, while the country’s daily demand is approximately 3,800 million cubic feet per day. As a result, Bangladesh is currently meeting only about 57 percent of its gas requirement, leaving industries to compete for a limited energy supply. The shortage has been particularly severe in the industrial regions surrounding Dhaka, Narayanganj, and Gazipur, where a large concentration of textile factories is located.
The effects on industrial production have been immediate and significant. Many textile factories are operating far below their installed capacity, while others have adjusted production schedules to coincide with periods when gas pressure is relatively higher. These temporary measures reduce efficiency, increase production costs, and make it increasingly difficult to meet strict shipment deadlines required by international buyers. Earlier industry reports indicated that gas shortages reduced production in several textile mills to only 30 to 40 percent of their installed capacity, raising serious concerns regarding export commitments and long term business sustainability.
The consequences extend beyond individual factories. Bangladesh, once the world’s second largest apparel exporter, has recently fallen to third place amid increasing global competition. Although several factors influence export performance, uninterrupted energy supply has become one of the most critical requirements for industrial competitiveness. International buyers prioritize reliability and timely delivery, and prolonged production disruptions increase the likelihood that export orders will shift to competing manufacturing countries with more dependable energy infrastructure.
Recognizing the seriousness of the crisis, the government has suspended new industrial gas connections until the national supply situation improves. The decision reflects declining domestic gas production and limited LNG import capacity, leaving authorities with little choice but to prioritize existing consumers. However, this policy has also slowed industrial expansion. Approximately 1,857 applications for new industrial gas connections remain pending, preventing newly established factories from beginning commercial production despite having completed construction and installed machinery.
The ongoing crisis has exposed a major structural weakness in Bangladesh’s industrial energy system, namely its overwhelming dependence on natural gas. For many years, natural gas has been the preferred fuel for industrial steam generation because of its relatively low cost and widespread availability. However, declining domestic reserves, uncertainty in global LNG markets, and infrastructure limitations have demonstrated the risks associated with relying almost entirely on
a single energy source. The present situation clearly shows that greater energy diversification is essential for ensuring long term industrial resilience.
Among the available alternatives, biomass stands out because of its abundant local availability and immediate applicability. Bangladesh produces approximately 52 million tonnes of paddy every year, and rice husk accounts for nearly 17.5 percent of the harvested paddy weight. Consequently, millions of tonnes of rice husk are generated annually through rice milling activities. At the same time, the country’s expanding furniture and timber industries generate substantial quantities of sawdust and wood processing residues that can also serve as valuable industrial boiler fuel.
Rather than allowing these agricultural and forestry residues to be discarded or burned inefficiently, they can be converted into useful renewable energy. Modern biomass fired boilers are capable of producing the high pressure steam required for textile wet processing operations through automated fuel feeding systems, controlled combustion, and efficient heat recovery technologies. Unlike traditional biomass burning methods, industrial biomass systems provide consistent steam generation while incorporating emission control technologies that improve environmental performance and reduce particulate emissions.
Biomass has already proven its practicality within Bangladesh’s textile sector. Several textile manufacturers have successfully replaced natural gas with biomass fired boilers using paddy husk as the primary fuel. One well documented example from Narayanganj demonstrated that switching to rice husk enabled uninterrupted production despite severe gas shortages. Although steam generated from biomass may sometimes cost more than subsidized natural gas under normal market conditions, maintaining continuous production is often far more economical than repeated factory shutdowns, delayed export shipments, cancelled orders, and financial penalties imposed by international buyers.
In addition to improving energy security, biomass also supports Bangladesh’s environmental objectives. Agricultural residues such as rice husk and sustainably sourced wood waste are renewable resources whose carbon emissions are largely part of the natural carbon cycle.
Productive utilization of these materials also discourages open burning, reduces agricultural waste, and supports circular economy principles by converting waste into a valuable industrial energy resource. Greater biomass utilization can therefore contribute to both industrial sustainability and national climate goals while reducing dependence on fossil fuels.
The current gas crisis should be viewed as a turning point for Bangladesh’s industrial energy strategy. While natural gas will continue to play an important role in supporting industrial development, excessive reliance on a single fuel has exposed one of the country’s most valuable export industries to considerable economic risk. Expanding the use of locally available biomass resources such as paddy husk and sawdust offers a practical pathway toward greater energy security, improved industrial resilience, enhanced export competitiveness, and more sustainable economic growth. Investing in biomass based energy systems today can help ensure that Bangladesh’s textile industry remains productive, competitive, and prepared for future energy challenges.
Authors: Md. Sahil Rafiq, Graduate Student Researcher, University of California, Berkeley. Dr. Nadim Reza Khandaker, Former Professor, Department of Civil and Environmental Engineering.
