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HomeNews & ViewsIndustry FocusSurviving the Energy Crisis: Navigating Technological and Financial Realities in Bangladesh's RMG Sector

Surviving the Energy Crisis: Navigating Technological and Financial Realities in Bangladesh’s RMG Sector

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The ongoing gas crisis is pushing Bangladesh’s Knit Composite and Woven Washing plants to the brink, with production dropping to 50% or less. The RMG sector drives 85% of national export revenue, yet factories are struggling to maintain fuel safety and retain global buyer confidence.

Engr. Mahtab Uddin Ahmed, Deputy General Manager (Maintenance & Utility), Hams Garments Ltd.

To keep production lines moving, many factories like us are burning through up to $25,000 USD (30 lakh BDT) daily on alternative fuels like diesel. These unrecoverable costs cannot be passed onto buyers without immediately pricing our export products out of the global market.

To survive, industrial energy infrastructure must be restructured across three key operational areas:

 Steam Generation: Biomass boilers and diesel remain immediate lifelines for process steam. While converting existing natural gas boilers to run directly on pure LPG is technically possible, it requires specialized LPG burners equipment that is rarely standard on installed systems. Sourcing replacement European boiler burners can cost roughly $80,000 USD per unit, making direct LPG conversion cost-prohibitive. SNG (Synthetic Natural Gas) provides the ideal alternative, enabling factories to run existing steam boilers without replacing burners or incurring massive retrofitting expenses. 

Gas-Fired Production Machines: SNG is also the most viable drop-in fuel substitute to maintain continuous operation across specialized dyeing, stenter, and washing equipment without requiring machine modifications. However, deploying SNG systems demands significant upfront capital. To enable this transition, the Government must urgently instruct the Department of Explosives to streamline and expedite LPG/SNG storage licensing procedures.

 Captive Power Generators: Major industrial gas generators such as Caterpillar, Jenbacher, and Waukeshaβ€”strictly enforce fuel gas specifications. Standard engine configurations do not readily support raw or unvalidated SNG usage without risking engine damage or voiding manufacturer warranties. At HAMS Group, we are actively collaborating with Bangla CAT to evaluate safe, engine-compliant fuel blending and technical adaptations. Solar & Battery Energy Storage Systems (BESS): Solar paired with BESS offers clean, reliable support during heavy grid load-shedding, drastically reducing reliance on costly diesel generation. However, high initial capital requirements continue to slow adoption across the sector during tight liquidity. Without fast-tracked regulatory approvals, OEM-backed technical solutions, and policy support for energy transition investments, the RMG sector risks severe structural disruption. Immediate policy intervention is critical to safeguarding Bangladesh’s export economy.

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