BANGLADESH vastly misses out on biogas, organic fertilizer potential

Photo: Mehedi Hasan

Bangladesh, which produces around 124.15 million tonnes of livestock and urban waste each year, is missing out on the vast potential of organic fertiliser and biogas, experts have said at a roundtable.

They said the country has a potential of 50 lakh biogas plants, but only 1.5 lakh plants have been built.

"There is an opportunity to turn the waste of the 43 crore livestock (2021-22) population into a resource. If it is used to make biogas, it can be used for cooking and electricity as well as organic fertiliser," said Nurul Amin Siddiquee, Bangladesh Country Representative of ACDI/VOCA, during a keynote presentation at the seminar titled "Unlocking the Methane Emission Reduction Potential: Biogas for a Climate-Resilient Bangladesh."

"There is also an opportunity to reduce the use of chemical fertilisers by at least 30% by increasing the use of organic fertilisers as a by-product," he added.

Supported by USAID, the Washington-based development organisation ACDI/VOCA and The Business Standard jointly organised the programme at the newspaper's office on 16 May. 

Zahid Nawaz Khan, Head of Digital at TBS, moderated the discussion.

Nurul Amin Siddiquee, Chief of Party and Country Representative, USAID Feed the Future Bangladesh Livestock and Nutrition Activity, ACDI/VOCA

Our activity focuses on improving milk and meat productivity and increasing sales for farming communities in southwest Bangladesh. A key area of improvement is environmental management and risk mitigation in livestock farms produce significant waste daily, posing health hazards and zoonotic disease risks. We aim to transform this waste into wealth, leveraging biogas technology. Methane, 23 times more effective than carbon dioxide at trapping heat, is a major global concern, especially for the livestock industry. Livestock sector produced over 66,000 gigatons of carbon dioxide equivalent in 2018, projected to rise to 113,000 gigatons by 2050. Mismanaged waste leads to water contamination and other environmental threats.

Adopting waste management solutions faces barriers such as limited awareness and high upfront costs. Traditional practices harm the environment and pose health risks to humans handling waste daily. We draw on examples from neighboring countries like India, where supportive policies and community-driven initiatives have transformed the biogas sector. India has installed 5 million biogas plants, generating substantial amounts of biogas daily. Leadership is essential in creating supportive policies and financial incentives. The private sector can drive innovation in technology design and financing models, making biogas solutions more accessible. Community-driven initiatives, behavior change promotion, and capacity building are crucial. Financial institutions and research institutes also play vital roles in optimizing biogas technologies and harnessing bio-slurry effectively. We envision a bio-revolution to address climate change impacts, offering clean energy inclusively and improving public health, especially for women and girls.

Hasib Rahman, Head of Sales, ATEC

The challenges we face include our pricing system. For the community members, the amount, even though it is similar to other biodigesters, is still quite substantial to pay all at once. Therefore, any form of microfinance support would be useful in expanding our reach, or a direct grant for subsidy would be beneficial. A subsidy model from the government would also be helpful.

We, at ATEC, have tried to provide support through microfinance. We currently have 15 customers or established plants across the country. About 800 of these systems have been financed by us through micro-credit. We have set up these plants at a nominal cost and plan to recover this amount by 2027. However, with this small loan system, we face two main problems: first, we have to make the investment ourselves, which also incurs a cost; second, 20% of customers are very indifferent to repaying the loan.

Another challenge is subsidy support. Initially, we received subsidies from IDCOL. We started with a somewhat subsidy-based model, then transitioned to a self-financing model. If such subsidies were available again, it would be very beneficial. Biogas plants offer several outputs: the first is gas, and the second is slurry. Slurry is a consumable fertilizer with high financial value if it can be sold. Additionally, biogas plants have low methane gas emissions, which is very important for the environment. Typically, cow waste emits 80% methane gas, while biogas plants contribute only 5% carbon emissions. Through this, we can sell the carbon reduction as carbon credits.

A farmer who buys his management system cannot sell it because he cannot accurately represent its financial value. Therefore, I developed a model to address this issue.

Engineer Delwar Hossain, GIUS

Since 2000, we have been working with biogas, focusing on marketing and promoting social behavior changes to encourage the practice. In the Gazipur area, a mosque imam suddenly denounced the practice, leading most community members to turn away from the idea. To address this, we decided to cook with biogas one day and invited him for dinner. After eating, we revealed that the food had been cooked using biogas. He then decided that the food was acceptable and changed his mind, subsequently endorsing the biogas concept publicly. So far, we have installed 35,000 units of biodigesters. Of these, 25,000 plants were installed using the IDCOL model, and the others by Grameen Shakti.

Kaushik, Head of Finance, ATT&CK Australia

Bangladesh's laws are not farmer-friendly or biogas-friendly. A little while back, a speaker mentioned that a farmer would have to repay this loan over 20 years, which amounts to about Tk300 per month. Now, we have to consider whether a farmer actually has the financial capacity to pay this amount in monthly instalments.

There is no proper guideline for biogas in Bangladesh. For the last six months, I have approached an officer of the NBR regarding this guideline, but I have failed to make any progress.
Now, we actually have to work through coordination, not legislation. If possible, we should at least create a guideline now.

Dr Nital Pada Saho, Chief Operating Officer, Rural Service Foundation

Our Rural Service Foundation started in 2007, mainly in collaboration with IDCOL. To date, we have installed 5,000 biogas power plants of varying capacities, from large to small scale.

I want to share a successful story that is both exemplary and inspirational. One time, we visited Gazipur to meet a factory owner who was convinced to install a 100kW biogas plant alongside a cow farm. Using the power from this biogas plant, he is able to cook three times a day for 700 labourers. This model has been highly encouraging for him, as it integrates cow farming with power generation from cow dung waste. It has proven to be extremely beneficial for waste management and maintaining an eco-friendly environment.

Additionally, he produces 300 litres of milk a day. By capitalizing on his biogas potential, he increased his farm productivity and was able to supply breakfast, lunch, and dinner to his factory's 700 staff members. The finding from this case is that those with financial ability, such as garment owners, are in a good position to demonstrate the scalability of this model.

Recently, the government's livestock ministry has come forward to support such initiatives. Our organization is already implementing biogas plants in 46 districts across the country, each capable of operating a 3kW power generator. This power is sufficient to meet basic electric demands.

The prime minister has been informed of the progress, and we hope to complete all plants within the next month.

This is a very good opportunity for this sector, with the country's leadership focused on boosting the biogas power generation system.

Mahobul Islam, CEO, Waste BD

I work at Waste BD. We primarily focus on waste management and affordable technology within the circular economy.

I have heard from manufacturers and users that biogas costing is a significant factor. The traditional methods we use involve raw materials like brick, cement, and plastic or fiberglass made from imported resin. For our farmers, especially marginal farmers, the manufacturing and installation costs present a substantial barrier. It requires a significant capital investment.

We work in this area and use models from neighbouring countries and African countries, such as using flexible materials to make biogas plants, which we call BioShikha. We have adopted this technology in Bangladesh. By using local materials and fabricating them locally, we have conducted trials in different farmer projects over the past four years. Based on trial and error, we have developed a learning model.

We would like to thank the Sustainable and Renewable Energy Development Authority (SREDA) for their support in this work. They have acknowledged and endorsed us. We have also been supported by the Bangabandhu Innovation Grant, which awarded us to further develop our skills.

We believe that technology should not be limited to a single model. There should be numerous variations and options because different people work in different fields. Waste management services are necessary, and so is energy justice. In this context, innovation is a crucial factor. Our research institutions can support us, and financial institutions should come forward to promote this technology by providing financial support for its manufacturing.

Bashir Ahmed, ACI

Actually, waste is a resource. Waste is a well. Livestock farmers produce cow dung and, in some cases, poultry litter. This cow dung and poultry litter can be turned into organic fertilizer, which is then used by farmers for crop production.

Currently, the establishment of biogas plants is costly and not affordable for most farmers or households. Biogas plants produce gas, which is used for cooking and electricity, and the by-product, slurry, is used as fertilizer. We can leverage a trading and marketing system for the by-product slurry as fertilizer.

Farmers produce small quantities of organic slurry in different locations, making it difficult to collect and manage. However, if our vendors go door to door to collect poultry litter and cow dung, they could also collect slurry from various places. We could then use this collected slurry.

Currently, we are selling 50,000 tonnes of organic fertilizer, which translates to a value of about Tk55 crore. This means cow dung and poultry litter are creating money – money for dairy farm owners and for the vendors who trade in these materials.

The labourers involved in this process earn money, and our production units employ many people to produce organic fertilizer. Through this process, we generate employment, provide income to farm owners, and support a network of traders.

By giving organic fertilizer to our farmers, we address a critical need. Our farmers' fields currently have only 1% organic matter, but they require 5% organic matter. Using organic fertilizer reduces the need for chemical fertilizers. We can immediately reduce the use of chemical fertilizers, such as urea and nitrogen, by 30%. The government spends about $4 billion on subsidies for chemical fertilizers. By using organic fertilizers, we can reduce this expenditure and rely less on chemical fertilizers from other countries.

That's the summary from my side. Thank you so much.

Md Tanvir Masud, Head of Project, GIZ Bangladesh

I would like to share a brief history of the biogas progression or evolution we are discussing today, as many biogas advocates, including myself, are present here. We have worked together for the last eight years to develop various policies to support this sector.

The first significant step was in 2017 when we formed a biogas formulation guideline. In that guideline, we aimed to compile all the information about the sector and discovered that the main problem was consistency. There are numerous biogas projects; so far, most of them are based on kitchen waste, with around 200,000 projects across Bangladesh. However, half of them are not functioning. Why? Due to a lack of consistency.

I believe we are still targeting the wrong group. There are 1.5 million cattle farms in Bangladesh right now, but they do not have any biogas plants. Why? We lack effective business models. We tend to rely on government incentives, but sometimes policy itself can serve as an incentive. For example, net metering policies, which are often discussed in the context of solar energy, could also be applied to biogas plants that generate electricity.

Therefore, it is time to think outside the box and shift our focus to developing business models that target the right groups.

Sylvia Margaret, President, ACDI/VOCA

ACDI/VOCA are working in the Livestock sector in the last 15 years and recognizes the challenges, including low productivity, high greenhouse gas emissions, pollution, and health risks from improper manure management. We are collaborating with the government, private sector, academia, financial institutions, and regulators to explore opportunities and address challenges in the biogas sector for climate change. There is a necessity of building capacity in this sector, emphasizing the need for a framework to effectively guide policy and collaboration between different parties.

Engineer Suman Ali, SNV Netherlands

SNB is working on biogas and has previous experience in this area. From 2006 to 2010, we worked on household-level biogas projects with IDCOL. However, due to a lack of funding, SNB is not currently active in biogas projects. Right now, we have a project focused on the sustainable urban water cycle, which includes solid waste management.

As you all know, the landfills in different municipalities and areas are major sources of methane emissions. If we can convert open landfills into biodigesters, it would significantly reduce methane emissions.
In this project, we are working in 12 cities: four city corporations and eight municipalities. We plan to incorporate biogas solutions into this project.

Dr. S. M. Nasif Shams, Director, Institute of Energy and Associate. Prof. at Dhaka University Dhaka

We have the potential to produce more than 13 million cubic meters of biogas, similar to India's current production of 4.43 million cubic meters. With this capacity, we could generate around 2,000 megawatts of power. The challenge is that solar and wind technologies have already received significant investment, making them easier to adopt. Internationally, governments are moving towards these technologies due to their scalability. However, for Bangladesh, it is more appropriate to use waste-to-energy technology, as it not only generates energy but also provides a crucial service in managing waste.

Being one of the most populated countries, Bangladesh must have robust waste treatment solutions. One suggestion is to treat waste at the source. For example, at Dhaka University, we gather waste from approximately 40,000 students and 3,000 teachers and their families. This waste is collected and kept for one or two days before the municipality comes to take it. They then gather it in another location before deciding what to do with it.

It is encouraging that the government is becoming more serious about biogas initiatives.

Dr. Chayan Kumer Saha, Professor at the Department of Farm Power and Machinery, Bangladesh Agricultural University

One is how can universities incorporate biogas technology into their curriculum? And the second one is how do you envision the role of academia in scaling up biogas adoption nationwide? Answer: Leading universities like Mymensingh Agricultural University in Bangladesh have had considerable success in incorporating renewable energy and biogas technology into their curriculum. 

We also teach about the circular bio-economy, emphasizing that agriculture is not only about crops but also includes livestock and fisheries. We adopt an integrated approach to utilizing waste from agriculture, crops, livestock, and fisheries. For example, we educate our students on how agricultural waste can be used for various purposes, such as producing feed for livestock from crop waste.

To give you some context, Bangladesh generates 61 million tonnes of organic waste from agriculture and livestock annually, with 31% coming from livestock and 62% from crops. Industrial waste contributes around 5%. Despite only 2% being processed, all this waste has the potential to be converted into wealth.

In addition, we emphasize climate-smart agriculture, which has three pillars: increasing productivity, adapting technology to the local climate (such as in Bangladesh), and reducing waste to minimize greenhouse gas emissions and produce bioenergy. Although this is already part of government policy, we are actively working to implement it.

Overall, we need a favourable policy environment to fully utilize biogas technology and reduce greenhouse gas emissions while making the most of agricultural waste.

Shahed Israil Khan, Bangladesh Biogas
Development Foundation

I would like to emphasize that biogas deserves more attention so people can understand its benefits. We urgently need strong policy support and incentives to popularize biogas. Unfortunately, this is not currently a priority. Speakers have mentioned three policies that still await approval: the biogas policy itself, the manure management policy, and the nationalization of incentives and taxes to promote biogas.

The High Court has also suggested the establishment of a separate ministry for renewable energy to effectively support these initiatives. The central bank has allocated TK400 crore for this purpose, but repayment remains a challenge. Additionally, there are other initiatives in progress, such as the Khulna and Rangpur pipelines.

In India, an order has already been issued mandating that all pipeline companies use 5% to 10% biogas in their gas distribution processes.

Asma Haque, Chairman, Bangladesh Biogas
Development Foundation

We have a credit project under an MOU aimed at organizing small household biogas plants as well as larger ones. The credits will be sold to companies, benefiting the owners. This initiative needs organization, and we are committed to supporting it.

However, we lack the necessary policy support from the government. There is no dedicated oversight for the biogas sector. When we approach SREDA for meetings, they are unfamiliar with us due to turnover and retirements. New officials show little interest in biogas, with government focus predominantly on large-scale projects like LPG, LNG, and fossil fuels, leaving little room for smaller initiatives.

I am currently working on a project to detect and quantify gas emissions, intending to sell them in the carbon market, thereby allowing distribution companies to earn revenue. However, methane produced by small households remains underutilized, representing a missed opportunity.

Dr. Amanullah, Principal Scientific Officer·
Bangladesh Livestock Research Institute (BLRI)

Our head office has set up three biogas training plants for electricity generation since 2016. Additionally, a draft policy manual on livestock integration and management was proposed but has not yet been approved by the ministry. 

The institute is conducting various research projects on biogas. Our research has revealed that biogas is not only a source of energy and organic matter but also a significant public health concern due to contamination.

Furthermore, our studies have shown that biogas fertilizers are considerably superior to traditional fertilizers. It has been concluded that biogas production can be profitable if we ensure the proper management of bio-slurry.

Wahidur Rahman, vice president of IDCOL, said biogas plants not only provide gas for cooking purposes but also produce organic fertiliser for crops and fish ponds.

"The programme helps reduce the use of biomass fuel for cooking. Until December 2020, IDCOL has financed the construction of over 56,500 biogas plants all over the country through its 38 partner organisations," he added.

He said IDCOL finances plants with a daily gas production capacity ranging from 1.2 m3 to 25.0 m3, thereby meeting the demand of both domestic households and mid-sized dairy and poultry farms. IDCOL currently finances two models of biogas plants: brick-cement-based plants and prefabricated bio-digester based plants.

The program saves 54,200 tons of firewood ever year worth USD 4.27 million and also reduces the use of 48,000 tons of chemical fertilizer worth USD 10.67 million by producing 335,000 tons of organic fertilizer. The program also reduces 216,400 ton CO2 consumption per annum. 
We need policy level support to make use of the bio-slurry as we are only using 10% of the potential of Biogas.

Jahid Hossain, Representative, Palli Karma-Sahayak Foundation (PKSF)

The rural population seeks clarity on the profitability of installing a gas plant for Tk30,000 and the potential cost reductions.

We want to know how many stoves can use this gas and how many households can benefit from a single
gas plant. We aim to ascertain the comfort and feasibility of the technology, emphasising the need for a plan to swiftly provide them with affordable yet efficient technology.

Wahidur Rahman, vice president of IDCOL, said biogas plants not only provide gas for cooking purposes but also produce organic fertiliser for crops and fish ponds.

The programme helps reduce the use of biomass fuel for cooking. Until December 2020, IDCOL has financed the construction of over 56,500 biogas plants all over the country through its 38 partner organisations.

Funding has been allocated for approximately 74,000 domestic projects, around 50 semi-commercial projects, and 15 commercial projects in Bangladesh. Different business models are employed for each category, including subsidies of 10-20% for domestic projects and refinancing schemes for semi-commercial and commercial projects.

IDCOL finances plants with a daily gas production capacity ranging from 1.2 m3 to 25.0 m3, thereby meeting the demand of both domestic households and mid-sized dairy and poultry farms. IDCOL currently finances two models of biogas plants: brick-cement-based plants and prefabricated bio-digester based plants.