STUDY OF BIOMASS ENERGY SITUATION IN BANGLADESH
Reducing Greenhouse Gas Emissions by Promoting Bioenergy Technologies for heat Applications
Report No. EP/RAS/106/GEF
Country Report ( Submitted to FAO, Bangkok,
January 2006)STUDY OF BIOMASS ENERGY SITUATION IN BANGLADESH
Submitted by- Local Government Engineering Department (LGED) Dhaka, Bangladesh
January 2006
List of Abbreviation
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ADB |
Asian Development Bank |
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AIT |
Asian Institute of Technology |
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BADC |
Bangladesh Agricultural Development Corporation |
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BAU |
Bangladesh Agricultural University |
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BARI |
Bangladesh Agricultural Research Institute |
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BARD |
Bangladesh Academy for Rural Development |
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BBS |
Bangladesh Bureau of Statistics |
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BCAS |
Bangladesh Centre of Advanced Studies |
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BCCD |
Bangladesh Commission for Christian Development |
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BCSIR |
Bangladesh Council of Scientific & Industrial Research |
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BET |
Bio-energy Technology |
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BFRI |
Bangladesh Forest Research Institute |
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BIDS |
Bangladesh Institute for Advanced Studies |
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BPC |
Bangladesh Petroleum Corporation |
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BPPP |
Biogas Pilot Plant Project |
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BRAC |
Bangladesh Rural Advancement Committee |
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BRRI |
Bangladesh Rice Research Institute |
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BSCIC |
Bangladesh Small & Cottage Industries Corporation |
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BUET |
Bangladesh University of Engineering and Technology |
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CBO |
Community Based Organization |
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CEBET |
Clean and Efficient Biomass Energy Technology |
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DANIDA |
Danish International Development Agency |
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DoE |
Department of Environment |
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DoF |
Department of Forest |
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DoL |
Department of Livestock |
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FAO |
United Nation’s Food and Agriculture Organization |
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FSP |
Full-Scale Project |
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GEF |
Global Environmental Facility |
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GHG |
Greenhouse Gas |
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GoB |
Government of Bangladesh |
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GS |
Grameen Shakti |
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GTZ |
German Technical Cooperation |
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IBT |
Improved Bioenergy Technology |
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IFRD |
Institute of Fuel Research and Development |
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IRRI |
International Rice Research Institute |
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LGED |
Local Government Engineering Department |
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LPG |
Liquefied Petroleum fuel |
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NEP |
National Energy Policy |
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OIM |
Oil Marketing Company |
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PDF-B |
Project Preparation and Development Facility Block B |
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REDA |
Renewable Energy Development Agency |
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REP |
Renewable Energy Policy |
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RET |
Renewable Energy Technology |
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RWEDP |
Regional Wood Energy Development Programme |
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SEDA |
Sustainable Energy Development Authority |
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UNDP |
United Nations Development Programme |
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UNEP |
United Nation’s Environment Programme |
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UNEP-ROAP |
UNEP Regional Office in Asia and the Pacific |
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UNFCCC |
United Nations Framework Convention on Climate Change |
Executive Summary
Biomass is the most common fuel for usage in heating purposes in domestic, commercial and industrial sectors in all developing countries. However, the ways of using biomasses, are not efficient and cause pollution to the environment. Improved biomass technologies (IBTs) can play a vital role in providing improved energy services and mitigating emission of greenhouse gases and health-damaging pollutants. In the backdrop of above FAO wished to undertake a project “Reducing Greenhouse Gas Emissions by Promoting Bioenergy Technologies for Heat Applications” in South Asian countries of Bangladesh, Bhutan, Nepal, and Sri Lanka. LGED under the Ministry of Local Government, Rural Development and Cooperatives, of Government of Bangladesh was selected as partner organization.
Bangladesh is a country with high density of population, low-income level and consequently low consumption of energy. Majority of the people live in rural areas. Over 60% of the energy is generated by traditional fuel. They are generally wood fuel (including twigs and leaves), agricultural residues (including rice straw) and agricultural wastes (including rice husk and baggage), animal dung (including poultry droppings) and kitchen & vegetable wastes.
BIOMASS ENERGY SITUATION
The overall energy consumption in Bangladesh is very low. In 2003, the per capita energy consumption was 220 kgoe. Only about 32% of the population has access to electricity and around 6% to natural gas. The situation is even worse in the rural area, where around 75% of the population reside. Only 22% of population has electricity and no gas supply. The supply of natural gas is limited in some urban areas of eastern parts of the country. The vast majority of the population has to depend mainly on traditional biomass fuel.
The energy balances of Bangladesh show:
· Both supply and consumption of biomass energy has increased considerably.
· Domestic sector has the major share in overall energy consumption. The biomass consumption has increased from 404.50 PJ to 511.66 PJ, whereas the relative consumption decreased from 64.8% in 1990 to 60.4% in 2000.
· Contribution of biomass fuels in Final Energy consumption decreased from 73.1% in 1990 to 68.0% in 2000, although in absolute quantity the amount increased from 499.00 PJ to 650.94 PJ.
· Industrial and commercial use of biomass fuels account for 13.8% in 1995 and 13.7% in 2000 of the total national energy consumption. Here also, the absolute quantity increased significantly.
Biomass Energy Supply
The total supply in the year 2001-2002 is 56.38 million ton of biomass. The biomass energy is supplied from three sources: agricultural crop, forest and livestock and poultry. A major share of biomass energy is supplied from the crop residue such as rice straw, husk and bran from rice plant, tails, roots and baggage of sugarcane, straw of wheat, jute stick. The trees as well as twigs and leaves from them are used as fuel. These biomasses are available from three sources: designated forest areas, which are the real forests, homestead trees and road side trees and other social forests. Bangladesh has a small area of land under forest coverage. Cattle dung is important source of biomass fuel in Bangladesh. There are about 22 million cattle in Bangladesh, which produce about 0.22 million ton of wet dung daily.
Energy Consumption
Rural areas supply biomass for rural household consumption, for consumption in commerce and industry and also for household consumption in urban households, especially of the area, where natural gas is not available. Different types of biomass fuels, e.g. wood fuels, agricultural residues, and animal dung are used as cooking fuel in rural areas. In urban households natural gas, LPG, electricity, kerosene and biomass fuels are used for cooking. In rural areas energy use for commercial operations generally takes place within and around rural markets for cooking and lighting in shops and restaurants. Most of the rural enterprises are tea and grocery shops. For enterprises, whether at home or elsewhere within the village, non-biomass energy is used more frequently.
BIOMASS ENERGY END-USE TECHNOLOGIES
Improved Cooking Stoves
The traditional cooking stoves in Bangladesh are usually mud-built cylinder with three raised points on which utensils rest. The efficiencies of these stoves are low and vary between 5% and 10%. They cause heavy indoor pollution. Traditionally, the women and children collect biomass fuel for cooking. Moreover, they have to spend increasingly more time for collecting biomass. Improved stoves can play a significant role to better the fuel energy situation in Bangladesh. It is estimated that only about 300,000 improved stoves are currently in operation, even these are not used regularly for cooking all meals.
Biogas technology
Biogas technology makes the best possible utilization of various organic wastes, which have no or little economic value at present. Agricultural residue, cattle dung, poultry dropping, water hyacinth, human excreta may be used as raw materials for biogas plants. Biogas technology is useful in the recycling of nutrients back to the soil. Till August 2005, more than 25,000 fixed dome biogas plants have been installed.
Briquette
Khulna University of Engineering and Technology has done much research in collaboration with Asian Institute of Technology (AIT), Thailand. The developed technology has been transferred to private sector. A few private companies have come forward to manufacture and market the briquetting tools. Briquette from rice husk and sawdust is becoming more and more popular all over Bangladesh. It is now available in markets on commercial basis. At the moment, there are more than 900 briquette machines operating in Bangladesh. Saw dust based briquette production has not become popular in Bangladesh. It is not known whether there is any sawdust briquette manufacturing plant in Bangladesh.
Improved Rice Parboiling Technology
Most of the people except from Chittagong and Sylhet region are accustomed to use parboiled for preparing rice. Rice parboiling is energy intensive. The boilers for rice parboiling are primitive and have low efficiencies in the range of 10% - 30%. New rice parboiling ovens have been developed which have efficiencies much higher than that are traditionally used in Bangladesh. Also IFRD of Bangladesh has developed improved rice parboiling ovens, which have efficiencies in the order of 50% and above. But little or no initiative has been undertaken to bring this technology to the users.
Biomass Gasification Technology
Biomass based heat and power generation is an option for supplying heat to industries and distributed power generation in remote areas. The basis is biomass gasification. Assessments in a number of countries concluded that developing countries present unique opportunity for small and large scale commercial exploitation of bio-mass based technology to meet a variety of energy needs, particularly in the agricultural and rural sectors including water pumping, power generation.
TARGET MARKET FOR IBTS
Potential market for improved cooking stove and improved biogas technologies are all rural and urban households who use biomass as cooking fuel. The target market for improved biomass commercial stoves is all biomass-consuming restaurants and tea stalls. The target market for improved biomass boilers and other industrial appliances is all bulk biomass consuming industries. Although the end-users are not as numerous as the household sector, but like the household sector, it is equally important that interventions are carefully designed so as to address the user needs.
It is proposed to install 500 HHG (House Hold Gasifier), 20 IG (Institutional Gasifier), 10 large gasifier, 10 improved briquetting machine, 10 improved rice parboiling technology and 2000 ICS (Improved cooking stove) during project period.
GHG EMISSION REDUCTION POTENTIAL: BASELINE AND ALTERNATIVE SCENARIOS
Per capita emission of GHG for Bangladesh in terms of CO2 equivalent was less than one ton, about 670 kg per year, if traditional biomass burning is excluded. Total greenhouse emission of the country was 72 million ton in CO2 equivalent for the year 1990. During the project period GHG emission is estimated to be reduced about 34 thousand MT CO2 and within 15 years period with three times replication is about 504 thousand MT CO2.
Total cost of intervention is budgeted for USD 1104 thousand including GEF contribution of USD 505 thousand. Cost per MT CO2 abatement with 15 years commitment period is 6.5$/MT CO2 and considering the long-term implication, cost is estimated at 2.96 $/MT CO2.
Household Sector
The biomass consumption pattern shows that the household sector has the highest consumption followed by industrial sector and commercial sector. As such it is anticipated that the biomass reduction potential is also in the same order. The household sector annual biomass consumption is in the order of 44.1 million tons (about 79% of total biomass consumption) in 2000. Assuming 50% carbon content, the CO2 emission from the household sector is in the order of 22.05 million tons. Further, given the low combustion efficiencies of most existing bio-energy stoves, substantial amounts of other GHG gases are also emitted. Wood Energy Sectoral Analysis (FAO, 1991) estimates the efficiencies of the open-hearth stoves to be in the order of 12% and that of the traditional mud stoves to be in the order of 15-17%. There is an immense potential to reduce GHG emissions through the enhancement of biomass stove efficiencies.
Industrial Sector
The industrial sector biomass consumption was around 11.09 million tons per annum in 2000 and comprises around 18.5 % of the total biomass fuel consumption. Assuming 50% carbon content, the CO2 emission from the institution sector is in the order of 20.34 million tons. A large proportion of the industries that depend on fuel wood employ the inefficient boilers with efficiencies in the order of 12% - 20%. Most of the biomass boilers in use have low combustion efficiencies judging from the emissions and especially from the hot flue gas escaping into the external environment. The amount of CO2 reduction from reductions in fuel wood consumption is up to 50% from the base year.
Commercial Sector
The commercial sector biomass consumption was around 2.5 million tons per annum in 2000 and comprises around 3 % of the total biomass fuel consumption. Assuming 50% carbon content, the CO2 emission from the commercial sector is in the order of 4.58 million tons. A large proportion of the restaurants that depend on fuel wood for cooking purposes employ the inefficient stoves with efficiencies in the order of 8% -12%. Most of the commercial kitchen stoves in use have low combustion efficiencies. Improved cooking stoves which has started to be used commercially will not only reduce GHG emission but improve the working condition of the user. The amount of CO2 reduction from reductions in fuel wood consumption of up to 50% from the base year.
BARRIERS TO COMMERCIALIZATION OF IBTs
During the last two decades several attempts have been undertaken to popularize the improved biomass technologies, however with relative meager success. Almost all of them have not reached the commercialization stage. There are several barriers, which hinder the commercialization. These includes:
§ Technical barriers
§ Financial barriers
§ Institutional barriers
§ Policy barriers
§ Information barriers
CAPACITY BUILDING NEEDS OF STAKEHOLDERS
The central concerns of capacity building is to identify needs, to manage change, to resolve conflict, to manage institutional pluralism, to enhance coordination, to foster communication, and to ensure that data and information are shared - require a broad and holistic view of capacity development.
Capacity building is necessary for better awareness and understanding, information availability, research and development. It generally consists of the training of trainers, field workshops and development of training manuals. The major activities includes the organization of training of trainers, workshop on the basic course of IBETs, conduction of pilot projects and demonstration of modern IBETs for commercialization.
BUDGET
Total budget of 1.104 million US$ has been proposed of which 0.505 million US$, could be provided from the GEF and the rest from other sources and GoB / users respectively.
Project Implementation and Management
Local Government Engineering Department will implement the project jointly with ongoing energy sector assistance programme with funding from UNDP, WB, and the Government of Bangladesh. Stakeholder participation will be ensured through bioenergy core committee, which is chaired by the Secretary of MoEF & GEF focal point in Bangladesh. All relevant information will be host on the existing REIN [Renewable Energy Information Network] website [www.lged-rein.org]
RECOMMENDATIONS
Bangladesh has a good potential for more efficient utilization of bio energy resources.
1. Workshops should be held between consumers, service providers and facilitators (technologies & finance) to solve the problem of users, especially in maintenance, and extend the application the IBT’s, especially at the grass root level.
2. Local Administration should be involved in these Workshops.
3. Training courses should be held at Policy, Central and Implementation levels.
4. Manuals and brochures should be made on technology & advantages of BETs and disseminated to the relevant community.
5. Government should coordinate the activities in BET, find out the shortcomings and take steps to remove them.
6. More demonstration project in BET should be undertaken to resolve the technical and economic issues until they become commercially viable.
7. A central Agency in the public sector is urgently required to coordinate the present BET activities, create further awareness, and remove the barriers and building capacity both in technology and manpower.
8. Lessons should be learnt in promoting BET from neighboring countries (especially India, Nepal, Sri Lanka & China) and actions taken, accordingly.
9. Existing data base should be centralized and strengthened.
10. Greater awareness should be created for using improved bioenergy technologies by constantly explaining their advantages with various media technologies..
11. Demonstration projects should be taken up in Bangladesh within the framework of FSP (Full Scale Project).
12. Further research and development work should be undertaken leading to demonstration projects with a view to start commercial projects in the private sector.
13. Improved stoves may be introduced for worker’s colonies in tea gardens, industrial establishments and isolated settlements. If animal dung is sufficiently available in the area (as in tea gardens), then domestic or community biogas plants may be set up.
14. A central Agency in the public sector is urgently required to coordinate the present BET activities, create further awareness, remove the barriers and build capacity both in technology and manpower.
15. All information should be made available to public through web-hosting.
Table of Contents
3.1 Energy Sources of Bangladesh
3.2 National Energy Balance and Share of Biomass Energy
3.3.3 Cattle Dung and Poultry Litter
3.4.1 Households (Rural/ Peri-Urban/Urban)
3.4.2 Rural/ Peri-Urban/Urban Commercial Units
3.5 Types of Biomass Energy End-use Technologies
3.5.5 Improved Rice Parboiling Technology
3.5.6 Biomass Gasification Technology
5. GHG EMISSION REDUCTION POTENTIAL: BASELINE AND ALTERNATIVE SCENARIOS
6. BARRIERS TO COMMERCIALIZATION OF IBTs
7. CAPACITY BUILDING NEEDS OF STAKEHOLDERS
8. PROJECT IMPLEMENTATION AND MANAGEMENT:
8.1 Project Steering Committee
8.2 Stakeholder involvement and social assessment:
8.3 Institutional Arrangement:
8.4 Project Implementation Schedule and approach:
8.5 Information Dissemination and consultation:
9.0 CONDUCTING PERFORMANCE EVALUATION AND MONITORING PROGRAMS
10.3 Improved Rice Parboiling Technology
11. CONCLUSION AND RECOMMENDATIONS
List of Tables:
Table 1: Income Group of households surveyed:
Table 2 : Type and no of Industry
Table 3: Energy Balance 1990 in PJ
Table 4: Energy Balance 1990 in PJ (1015 Joule)
Table 5: Land Utilization in million Acres (BBS, 2002)
Table 6: Agricultural crops in million ton (BBS, 2002)
Table 7: Forest Area of Bangladesh in 2000 (BFRI, 2000)
Table 8 : Decrease in Forest Area (BFRI, 2000)
Table 9: Selected Forest Products (BBS, 2002)
Table 10: Production of Firewood from Forest (BBS, 2003)
Table 11 : Energy Supplied by traditional fuel (BBS, 2002)
Table 12: Cost of traditional cooking stove
Table 13: Consumption of Biomass (kg/household /y) in rural households
Table 14: Rural households by type of energy consumption
Table 15: Consumption of Biomass fuels according to Land Holding Size
Table 16 : Biomass fuel consumption in a village
Table 17: Type and no of Enterprise/Institute; Source: LGED Field Survey, 2005
Table 18: Consumption of biomass (kg/unit/year) in rural business enterprises.
Table 19: Average cooking efficiencies for various stoves and fuels (percent)
Table 20 : Bangladesh Greenhouse Gas Inventory in 1990
Table 21: Basics of Estimating GHG Commitments
Table 22: CO2 Emission Reduction from HHG
Table 23: CO2 Emission Reduction from ICS
Table 24 : Reduction of fuel wood and CO2 emission in the industrial sector
Table 25: CO2 Emission Reduction from IG
Table 26: Reduction of fuel wood and CO2 emission in the commercial sector
Table 27: CO2 Emission Reduction from LSG
Table 28: CO2 Emission Reduction from IP
Table 29: CO2 Emission Reduction from IBS
Table 30: Summary of GHG Emission
Table 31: Project Implementation Schedule
List of Figures:
Figure 1 Implementation flow-diagram
Figure 2 : Energy Consumption Pattern by Source in 1990
Figure 3 : Energy Consumption Pattern by sector in 1990
Figure 4 : Energy Consumption Pattern by Source in 2000
Figure 5 : Energy Consumption Pattern by Sector in 2000
Figure 6: Cooking with biomass in a rural household of Bangladesh (GTZ, 2005)
Figure 7 : Number of households using cooking Stove (Source: LGED Field Survey, 2005)
Figure 8 : Households consumption of Biomass fuel kg/day, Source: LGED Field Survey, 2005)
Figure 10: Current Technologies used for heat application in Institutes/Enterprise
Figure 11: Model of an improved stove designed by BCSIR
Figure 12 : Rice husk briquette
Figure 13 : Briquette producing machine
1. BACKGROUND
Biomass is the most common fuel for usage in heating purposes in domestic, commercial and industrial sectors in all developing countries. Biomass has an especially high share in the total energy consumption in South Asian countries. However, the ways of using biomasses, i.e. the prevalent combustion systems are not efficient and cause pollution to the environment. Clean and efficient biomass energy technologies (CEBETs) can play a vital role in providing improved energy services in these countries, and mitigating emission of greenhouse gases and health-damaging pollutants. There is an urgent need to promote deployment of CEBETs in view of growing climate change concerns.
In the backdrop of above FAO wished to undertake a project to introduce CEBETs in South Asian countries. FAO has been provided with a ‘Project Preparation and Development Facility Block B’ (PDF-B) Grant for the formulation of a full-scale GEF project document entitled “Reducing Greenhouse Gas (GHG) Emission by Promoting Bioenergy Technologies for Heat Applications”. The objective of the Full-Scale Project (FSP) is to enhance energy efficiency and reduce greenhouse gas emissions by promoting the adoption of improved bioenergy technologies for heat applications in the domestic and enterprise sector in the four South Asian countries of Bangladesh, Bhutan, Nepal, and Sri Lanka. Keeping these in mind, UNEP and FAO have decided to prepare regional projects for Bangladesh, Bhutan, Sri Lanka and Nepal, to enhance the efficiency and reduce greenhouse gas (GHG) emissions by Promoting the ‘Adoption of Improved Bio-energy Technologies for Heat Applications’ in the domestic and enterprise sectors. To this end, LGED under the Ministry of Local Government, Rural Development and Cooperatives (MoLGRD) of Government of Bangladesh has signed an Agreement with the Asia Pacific Regional office of FAO to provide necessary information to FAO by the end of December, 2005 to develop a full scale Project by UNEP- FAO by early 2006 to seek GEF funding for the Full Scale Project (FSP). It may be mentioned that GEF grant fund has been constituted for studies in developing cost effective GHG emission reduction technologies.
Biomass is by far the dominant energy source in the project countries, accounting for more than 50% of the countries’ total energy consumptions. For most rural areas, biomass is the only available energy source. Bioenergy use has, in absolute figures, been continuously increasing over the past years. Urbanization, increase in industrial activities and increased fossil fuel consumption have not affected this trend noticeably. With proper tree management practices, bioenergy is a sustainable energy source.
There are only few modern improved biomass conversion and utilization technologies in use in the region. Almost all biomass is burnt using traditional stoves and simple boilers or furnaces. The efficiencies of these devices are low, resulting in waste of energy and high carbon dioxide (CO2) and non-CO2 emissions. While there is only limited data available regarding the efficiencies and emissions of the devices/technologies employed in the enterprises, stoves used in households have been widely studied due to the concerns for fuel saving and emissions affecting human health and the environment. The FAO Regional Wood Energy Development Programme (RWEDP) and UNEP Regional Office in Asia and the Pacific (UNEP-ROAP) identified the need for a GEF project in the area of bioenergy for heat applications, partly as an outcome of four major consultations organized during 1998. These consultations focused on technology improvement, financing, institutional arrangements and policy instruments in different sub-sectors of wood fuel use. In addition, extensive discussions with RWEDP member countries from South Asia, in particular during the World Energy Council sponsored meeting held in Sri Lanka in 1999, confirmed the need for a specific focus on steps that will reduce greenhouse gas emissions by biomass use with emphasis on the domestic and enterprise sectors. The proposal was developed by RWEDP and UNEP-ROAP in close consultations with staff from the Indian Institute of Engineers.
The proposed GEF project will build on RWEDP achievements, and will enable participating countries to fully benefit from the experiences gained so far. At the country-level, the project is expected to generate synergy with local, national as well as donor-assisted projects having direct relevance to bioenergy by actively promoting the exchange of information and experiences among local players as well as those active at the regional and international level.
The elaboration of ways and means to achieve this will form part of the outcome of the PDF-B.
At the regional level, synergy will be achieved both with FAO and UNEP executed projects as well as other bilateral or multilateral projects relevant to bioenergy technology development. The project will also closely follow ongoing projects promoting other renewable energy technologies and integrate this experience in its approach.
Objectives of the Full-Scale Project
The objective of the Full-Scale Project (FSP) is to enhance energy efficiency and reduce greenhouse gas emissions by promoting the adoption of improved bioenergy technologies for heat applications in the domestic and enterprise sector in the four South Asian countries Bangladesh, Bhutan, Nepal, and Sri Lanka. The activities of the FSP would consist of:
- technical and commercial evaluation and demonstration of selected bioenergy technologies,
- support to the creation of an enabling policy environment,
- development of financial incentive schemes and leveraging of investments awareness-raising and capacity-building of stakeholders,
- dissemination of results for replication, and
- monitoring and evaluation of the full-scale project.
Status of the PDF-B Phase
To provide inputs for the formulation of the FSP, regional-level and country-level activities are being implemented under the PDF-B phase. The regional-level activities of the PDF-B phase started with: (1) a regional review of developments in bioenergy technologies for heat applications to identify those that have potential for commercial applications in the targeted countries of the proposed GEF project, and (2) a preliminary assessment of the greenhouse gas emission reduction potential of the use of improved bioenergy technologies.
The results of these studies were presented during an Experts’ Group Meeting (EGM), involving representatives from renewable energy agencies and the GEF focal points from the four-targeted countries. The meeting was held from 28 to 29 April 2005 at RAP, Bangkok, Thailand. The EGM was held to orient the target countries with the country-level activities to be undertaken under the PDF-B phase and initiate the implementation of these country-level activities. More importantly, the EGM was also used as a venue for obtaining the concurrence and commitment of the target countries to conduct the country-level activities at an accelerated pace, given the new deadline set by GEF for UNEP and FAO to submit the FSP document. The final draft of the FSP document is to be completed by FAO by October 2005 to allow time for UNEP’s review and finalization before submission to GEF Secretariat (GEFSEC). The final FSP document is to be submitted by UNEP to GEF before May 2006.
The countries agreed to an accelerated pace of the PDF-B implementation and committed their support in fast tracking country-level activities. As indicated in the PDF-B document, the country-level activities involve:
1.) National biomass energy baseline study,
2.) Assessment of the market potential of improved bioenergy technologies, including projections of baseline and alternative scenarios for biomass energy use,
3.) Analysis of market barriers to the commercialization of bioenergy technologies, and
4.) Mobilization of stakeholders and identification of needs for strengthening their capacities.
The overview for the implementation of the country level studies in Bangladesh is illustrated in the flow-diagram given below.
Figure 1 Implementation flow-diagram
Country-level activities
(i) Study of Biomass Energy Situation;
(ii) Assessment of the market potential for improved bioenergy technologies, including projections of baseline and alternative scenarios for biomass energy use;
(iii) Analysis of market barriers to the commercialization of bioenergy technologies;
(iv) Mobilization of stakeholders and identification of needs for strengthening their capacities.
Regional Lead Institute
Regional Lead Institute for this project is TERI of India. The tasks of TERI include:
· Guidance to National Partner Institute in the implementation of national level studies.
· Assist in formulating the full-scale project proposal to UNEP (Implementing Agency), and FAO (Executing Agency).
2. INTRODUCTION
Bangladesh is a South Asian country ridden with a high density of population, low income level and consequently low consumption of energy. Majority of the people live in rural areas. And most of the energy used in cooking (and in the special case of Bangladesh, parboiling of rice). Over 60% of the energy is generated by traditional fuel. They are generally wood fuel (including twigs and leaves), agricultural residues (including rice straw) and agricultural wastes (including rice husk and baggage), animal dung (including poultry droppings) and kitchen & vegetable wastes. Unfortunately, present practice of incomplete burning of the traditional energy sources gives rise to substantial greenhouse gas emission. Use of modern biomass energy technology will not only enhance the efficiency of their heat output but will also reduce greenhouse gas emissions.
Bangladesh is signatory to the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol. It ratified the UNFCCC in February 1994 and ratified the Kyoto Protocol in 22/10/2001. National Environment Policy and National Energy Policy both promote energy efficiency, cleaner production, renewable energies for greenhouse gas reduction and massive afforestation. To fulfill its obligations under the convention and also to enhance information on the various aspects of Climate Change, some studies have been conducted. Some measures have also been undertaken with different degrees of successes.
Since energy and environment are highly intertwined, this study is a timely intervention to identify ways and means to reduce GHG gas emissions through promoting bioenergy technologies for heating applications. This is even more pertinent considering that biomass (particularly fuel wood) is the dominant stakeholder in the national energy balance and also considering that it will continue to be so for a long time to come. Given the prominence of biomass energy in the national socio-economic context, the magnitude of biomass consumption, and the generally rudimentary bioenergy technologies employed in the country, there is an immense potential and opportunity to reduce GHG gas emissions through the promotion of more efficient bioenergy technologies for heating applications.
This report studies the energy balance of Bangladesh with a focus on the biomass energy consumption. Based primarily on secondary data, it assesses:
- the total biomass resources available;
- the biomass consumption pattern;
- the dominant biomass consumer categories;
- the type and quantity of bioenergy technologies employed;
- the bioenergy technologies presently used;
- the successes and failures of bioenergy projects implemented in the past;
- the potential to commercialize improved bioenergy technologies; and
- the barriers for the commercialization of improved bioenergy technologies.
On the basis of above, recommendations are made on the strategy for promoting bioenergy technologies for heating applications in Bangladesh.
2.1 Objectives of the Study
The objectives of this study, as derived from overall objectives of the FSP, are to:
- Establish the national biomass energy baseline,
- Assess the market potential of improved bioenergy technologies, including projections of baseline and alternative scenarios for biomass energy use.
- Analysis of market barriers to the commercialization of bioenergy technologies, and
- Mobilization of stakeholders and identification of needs for strengthening their capacities.
2.2 Scope of the Study
The scope and coverage of this report canvasses the essential details to meet the study objectives listed above. The study details for meeting each of the four objectives are as elaborately below in sub-sections.
Study of Biomass Energy Situation
The study of the country’s biomass energy situation covers the following:
- Assessment of biomass energy use in the household sector for cooking and other applications, including estimates of the number of households that purchase and use biomass fuels and stoves.
- Identification of the major biomass energy users in the enterprise sector; covering any important large, small, medium and/or micro-enterprises - characterizing the types of heating applications and technologies used.
- Assessment of available biomass energy resources and characterization of biomass supply mechanisms and practices.
- Current efforts in developing and promoting bioenergy technologies for heat applications (including relevant policies and on-going programs and projects).
Assessment of Market Potential of Improved Bioenergy Technologies
The assessment of market potential of improved bioenergy technologies covers the following:
- Identification of three priority target enterprise sub-sectors on which the full-scale GEF project will focus on the commercialization efforts for improved bioenergy technologies.
- Development of baseline and alternative scenarios. The baseline scenario refers to the future pattern of energy use in the target markets if no interventions are implemented. The alternative scenario(s) refer to the future patterns of energy use in the target markets if the full-scale project is implemented successfully and its expected results are realized.
- Generation of cost data for conducting incremental cost analysis; and CO2 emissions data for assessing potentials in the reduction in GHG emissions.
Analysis of Barriers to Commercialization of Bioenergy Technologies
The analysis of barriers to commercialization of bioenergy technologies covers the following:
- Identification and analysis of the barriers to commercialization of improved bioenergy technologies.
- Alleviation of the identified barriers to commercialization of improved bioenergy technologies.
Analysis of Capacity Building Needs of Stakeholders
The analysis of capacity building needs of the stakeholders covers the following:
- Identification and facilitation of the involvement of key stakeholders,
- Stakeholders’ consultation meetings, and
- Identification of training and other activities to be implemented under the full-scale GEF to strengthen capacities of the various stakeholders to allow their effective involvement in commercializing improved bioenergy technologies.
2.3 Methodology
The study comprises of the following three components:
(i) Literature review and analysis of data and information available (Refer to the bibliography for the references used)
(ii) Discussions with pertinent government officials and stakeholders (Refer to the list of people met)
(iii) Primary information (information and data collected from field visits and surveys)
Given the time and resource constraints, the primary data collection is confined to the areas of institutional bioenergy users, and selected areas of household bioenergy sector, particularly where existing data from past studies seem implausible or insufficient.
LGED conducted a comprehensive field survey. Table 1 Illustrates Types and no of household surveyed.
Table 1: Income Group of households surveyed:
|
Type |
No of Household |
|
Higher income |
2158 |
|
Medium income |
3201 |
|
Lower income |
2238 |
|
Total |
7597 |
Total 3466 Nos of Enterprise/Institutions, 914 nos of small industries and 1075 nos rice mill were surveyed Table 2 shows the type and no of industry
Table 2 : Type and no of Industry
|
Type |
No of Industry |
|
Dyeing & Yan twisting |
40 |
|
Gur making |
64 |
|
Salt |
21 |
|
Cocoanut oil |
57 |
|
Candle making |
20 |
|
Puffed rice making |
155 |
|
Dairy Product |
39 |
|
Soap making |
16 |
|
Blacksmith |
163 |
|
Sericulture |
2 |
|
Tobacco curing |
6 |
|
Re-Rolling mill |
7 |
|
Potteries |
209 |
|
Laundries |
4 |
|
Textile mill |
1 |
|
Others |
110 |
|
Total |
914 |
3. BIOMASS ENERGY SITUATION
3.1 Energy Sources of Bangladesh
Biomass, gas, oil, electricity and coal are the main sources of energy used in Bangladesh. The country has a recoverable gas deposit of 16.3 TCF. The country imports 3.5 – 4.0 million tons of petroleum and petroleum products per year. A sizeable amount of coal (more than 3 billion tons) has been discovered in several mines in the northwestern parts of the country. One coal mine has been developed and it will go into commercial production soon. The present demand of 0.1 to 0.15 million tons for coal is met by import. There is an estimated reserve of 171 million tons of peat. Extraction and use of peat is associated with high cost and environmental concern. As such it is not developed at the moment. The country, being flat, is not in a very favorable position in respect of hydroelectricity. At present, 230 MW is being harnessed.
3.2 National Energy Balance and Share of Biomass Energy
The overall energy consumption in Bangladesh is very low. In 2003, the per capita energy consumption was 220 kgoe. Only about 32% of the population has access to electricity and around 6% to natural gas. The situation is even worse in the rural area, where around 75% of the population reside. Only 22% of population has electricity and no gas supply. The supply of natural gas is limited in some urban areas of eastern parts of the country. The vast majority of the population has to depend mainly on traditional biomass fuel.
The energy balances of Bangladesh for 1990 and 2000 are shown in Tables 3 and 4 respectively. The important points regarding the contributions of the commercial and biomass fuels in the national energy scene are:
· Both supply and consumption of biomass energy has increased considerably.
· Domestic sector has the major share in overall energy consumption. The biomass consumption has increased from 404.50 PJ to 511.66 PJ, whereas the relative consumption decreased from 64.8% in 1990 to 60.4% in 2000. This is mostly because of population increase.
· Contribution of biomass fuels in Final Energy consumption decreased from 73.1% in 1990 to 68.0% in 2000, although in absolute quantity the amount increased from 499.00 PJ to 650.94 PJ.
· Industrial and commercial use of biomass fuels account for 13.8% in 1995 and 13.7% in 2000 of the total national energy consumption. Here also, the absolute quantity increased significantly.
· In the industrial sector in 2000, out of the total of 206.4 PJ, 128.6 PJ (62.3%) comes from biomass fuels and the remaining 37.7% from commercial fuels showing that close to two-thirds of the energy consumed in industries are derived from biomass fuels. The industrial consumption is almost one-third (35.7%) of the energy consumed in the domestic sector.
Table 3: Energy Balance 1990 in PJ
|
|
Crude Oil |
Petroleum Product |
Coal |
Natural Gas |
Electricity |
Total Comm |
Non-Wood Biomass |
Wood Fuel |
Total Biomass |
TOTAL ENERGY |
|
I. SUPPLY |
|
|
|
Biomass Fuels |
|
|
||||
|
Indigenous Production |
0.00 |
2.70 |
0.00 |
163.40 |
3.30 |
169.40 |
410.80 |
88.20 |
499.00 |
668.40 |
|
Import |
53.40 |
48.00 |
12.30 |
0.00 |
0.00 |
113.70 |
0.00 |
0.00 |
0.00 |
113.70 |
|
Export |
0.00 |
-6.30 |
0.00 |
0.00 |
0.00 |
-6.30 |
0.00 |
0.00 |
0.00 |
-6.30 |
|
Stock Exchange |
-5.90 |
-6.80 |
0.10 |
0.00 |
0.00 |
-12.60 |
0.00 |
0.00 |
0.00 |
-12.60 |
|
Total Primary |
47.50 |
37.60 |
12.40 |
163.40 |
3.30 |
264.20 |
410.80 |
88.20 |
499.00 |
763.20 |
|
Primary (Percent) |
6.20 |
4.90 |
1.60 |
21.40 |
0.40 |
34.50 |
53.80 |
11.60 |
65.40 |
99.90 |
|
II. TRANSFORMATION |
|
|
|
|
|
|
|
|
|
|
|
Refinery |
-47.50 |
44.10 |
0.00 |
-1.00 |
0.00 |
-4.40 |
0.00 |
0.00 |
0.00 |
-4.40 |
|
Thermal Power |
0.00 |
-8.80 |
0.00 |
-69.30 |
24.40 |
-53.70 |
0.00 |
0.00 |
0.00 |
-53.70 |
|
Loses & Own Use |
0.00 |
-4.00 |
0.00 |
-9.90 |
-8.30 |
-22.20 |
0.00 |
0.00 |
0.00 |
-22.20 |
|
Total Final Supply |
0.00 |
68.90 |
12.40 |
83.20 |
19.40 |
183.90 |
410.80 |
88.20 |
499.00 |
682.90 |
|
III. CONSUMPTION |
|
|
|
|
|
|
|
|
|
|
|
Domestic |
0.00 |
23.60 |
0.00 |
9.30 |
4.90 |
37.80 |
337.20 |
67.30 |
404.50 |
442.30 |
|
Industrial |
0.00 |
7.00 |
9.50 |
14.00 |
10.00 |
40.50 |
73.60 |
19.10 |
92.70 |
133.20 |
|
Commercial |
0.00 |
0.00 |
0.40 |
3.10 |
3.60 |
7.10 |
0.00 |
1.80 |
1.80 |
8.90 |
|
Transport |
0.00 |
25.00 |
2.50 |
0.00 |
0.00 |
27.50 |
0.00 |
0.00 |
0.00 |
27.50 |
|
Agricultural |
0.00 |
11.00 |
0.00 |
0.00 |
0.90 |
11.90 |
0.00 |
0.00 |
0.00 |
11.90 |
|
Others |
0.00 |
0.30 |
0.00 |
0.00 |
0.00 |
0.30 |
0.00 |
0.00 |
0.00 |
0.30 |
|
Non-Energy Use (Urea) |
0.00 |
2.00 |
0.00 |
56.80 |
0.00 |
58.80 |
0.00 |
0.00 |
0.00 |
58.80 |
|
Total Final Consumption |
0.00 |
68.90 |
12.40 |
83.20 |
19.40 |
183.90 |
410.80 |
88.20 |
499.00 |
682.90 |
|
Consumption Final Energy % |
0.00 |
10.10 |
1.80 |
12.20 |
2.80 |
26.90 |
60.20 |
12.90 |
73.10 |
100.00 |
|
Source: National Energy Policy: January 15, 1996 |
|
|
|
|
|
|
|
|
Note: ‘-’ sign before any figure indicates export (e.g. furnace oil) or transformation into other energy products (e.g. refining of crude oil).
Table 4: Energy Balance 1990 in PJ (1015 Joule)
|
|
CRUDE OIL |
PETRO-LEUM PRODUCT |
COAL/ COKE |
NATURAL GAS |
ELECTRI- CITY |
LPG |
TOTAL COMM. ENERGY |
NON- WOOD BIOMASS |
WOOD FUEL |
TOTAL BIOMASS ENERGY |
OTHER TRACTION |
TOTAL ENERGY |
|
I. SUPPLY |
|
|
|
|
|
|
|
|
|
|
|
|
|
Indigenous Production |
0.39 |
0.00 |
18.62 |
355. 98 |
0.00 |
0.00 |
374.99 |
323.12 |
331.09 |
654.21 |
14.47 |
1043.67 |
|
Imports |
64.33 |
52.09 |
0.00 |
0.00 |
0.00 |
0.21 |
116.63 |
0.00 |
0.00 |
0.00 |
0.00 |
116.63 |
|
Exports |
0.00 |
-12.53 |
0.00 |
0.00 |
0.00 |
0.00 |
-12.53 |
0.00 |
0.00 |
0.00 |
0.00 |
-12.53 |
|
Total Primary |
64.72 |
39.56 |
18.62 |
355.98 |
0.00 |
0.21 |
479.09 |
323.12 |
331.09 |
654.21 |
14.47 |
1147.77 |
|
Total Primary (Percent) |
5.64 |
3.45 |
1.62 |
31.01 |
0.00 |
0.02 |
41.74 |
28.15 |
28.85 |
57.00 |
1.26 |
100.00 |
|
II. TRANSFORMATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil Refining |
-64.72 |
62.49 |
0.00 |
0.00 |
0.00 |
0.73 |
-1.51 |
0.00 |
0.00 |
0.00 |
0.00 |
-1.51 |
|
Electricity Gen. |
0.00 |
-4.39 |
-0.30 |
-218.69 |
67.84 |
0.00 |
-155.54 |
0.00 |
0.00 |
0.00 |
0.00 |
-155.54 |
|
T & D Losses |
0.00 |
-0.88 |
-0.15 |
-7.48 |
-18.30 |
-0.01 |
-26.82 |
0.00 |
-3.26 |
-3.26 |
0.00 |
-30.08 |
|
Coke Production |
0.00 |
0.00 |
-3.72 |
0.00 |
0.00 |
0.00 |
-3.72 |
0.00 |
0.00 |
0.00 |
0.00 |
-3.72 |
|
Total Final Supply |
0.00 |
96.78 |
14.45 |
129.81 |
49.54 |
0.93 |
291.51 |
323.12 |
327.83 |
650.95 |
14.47 |
956.92 |
|
III. CONSUMPTION |
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
Domestic |
0.00 |
16.15 |
0.00 |
31.39 |
17.46 |
0.90 |
65.9 |
258.92 |
252.74 |
511.66 |
0.00 |
577.56 |
|
Industrial |
0.00 |
13.02 |
14.45 |
32.34 |
17.95 |
0.00 |
77.76 |
63.49 |
65.12 |
128.61 |
0.00 |
206.37 |
|
Commercial |
0.00 |
0.00 |
0.00 |
4.43 |
4.30 |
0.03 |
8.76 |
0.71 |
2.20 |
2.91 |
0.00 |
11.67 |
|
Transport |
0.00 |
50.93 |
0.00 |
0.00 |
0.00 |
0.00 |
50.93 |
0.00 |
0.00 |
0.00 |
0.28 |
51.21 |
|
Agriculture |
0.00 |
12.43 |
0.00 |
0.00 |
1.630 |
0.00 |
14.06 |
0.00 |
0.00 |
0.00 |
13.9 |
27.96 |
|
Others |
0.00 |
4.24 |
0.00 |
0.00 |
0.00 |
0.00 |
4.24 |
0.00 |
7.76 |
7.76 |
0.29 |
12.29 |
|
Urea (Non-Energy) |
0.00 |
0.00 |
0.00 |
61.65 |
8.19 |
0.00 |
69.84 |
0.00 |
0.00 |
0.00 |
0.00 |
69.84 |
|
Total Final Consumption |
0.00 |
96.77 |
14.45 |
129.81 |
49.53 |
0.93 |
291.49 |
323.12 |
327.82 |
650.94 |
14.47 |
956.9 |
|
Final Consumption (Percent) |
0.00 |
10.11 |
1.51 |
13.56 |
5.18 |
0.10 |
30.46 |
33.71 |
34.26 |
68.03 |
1.51 |
100.00 |
|
Source: Pl. Comm. (2002), adapted. |
|
|
|
|
|
|
|
|
|
Note: ‘-’ sign before any figure indicates export (e.g. furnace oil) or transformation into other energy products (e.g. refining of crude oil).
3.3 Biomass Energy Supply
The biomass energy is supplied from three sources: agricultural crop, forest and livestock and poultry. The biomass energy supply situation has been described below.
3.3.1 Agricultural Crop
Bangladesh is an agricultural land and is very densely populated. The share of cropped area in the total land area is high. Table 5 shows the cropped area and forest area. It shows both forest area and cropped areas have increased over the last five years. Likewise, the areas for homestead, institutions, industries and roads have also increased. The reason behind the increase in cropped area, forest area and others is that available land is being brought under use. The idle lying land is becoming scarcer.
Table 5: Land Utilization in million Acres (BBS, 2002)
|
Year |
Forest |
Cropped Area |
|
1986-87 |
4.91 |
34.88 |
|
1991-92 |
4.67 |
34.12 |
|
1996-97 |
5.33 |
34.09 |
|
2001-02 |
6.36 |
35.07 |
A major share of biomass energy is supplied from the crop residue such as rice straw, husk and bran from rice plant, tails, roots and baggage of sugarcane, straw of wheat, jute stick. Output of main agricultural crops for the years 1997-2002 is shown in the Table 6. Fuel crop like “dhaincha” is being cultivated. There are also plants like water hyacinth, which are not cultivated, but grow on its own. Several biomasses have multiple uses like fertilizer, cattle feed, and construction materials. Thus these biomasses are only partly available for fuel purposes. Most biomasses used as construction materials, e.g. bamboo, jute sticks, find their uses later as fuel.
Table 6: Agricultural crops in million ton (BBS, 2002)
|
Year |
Rice |
Sugar cane |
Wheat |
Jute |
|
1997-98 |
18.86 |
7.38 |
1.80 |
1.057 |
|
1998-99 |
19.90 |
6.95 |
1.91 |
0.812 |
|
1999-00 |
23.07 |
6.91 |
1.84 |
0.711 |
|
2000-01 |
25.08 |
6.74 |
1.67 |
0.821 |
|
2001-02 |
24.30 |
6.50 |
1.61 |
0.859 |
Straw, rice husk and barn are available as a byproduct of rice. The amount of straw and husk are in average 60% and 20% of the amount of rice respectively. Rice husk may be used directly as fuel or indirectly as briquette, which is also more efficient. Similarly, some residual parts of sugar cane, wheat and other crops are used as fuel. In sugar mills, bagasse is used for production of process heat. Bagasse is also used as raw material for paper. Recently, a residue of sugar cane molasses is planned to be used for the production of biofuel ethanol.
3.3.2 Forest
Forest is an important source of biomass fuel in Bangladesh. The trees as well as twigs and leaves from them are used as fuel. These biomasses are available from three sources: designated forest areas, which are the real forests, homestead trees and road side trees and other social forests.
Bangladesh has a small area of land under forest coverage. The accepted standard for forest area is that a country should have at least 25% of the total land area. However, according to Forestry Master Plan survey only 6% of the land area has tree cover (Huda and Roy, 2000)[1]. The BFRI published data regarding forests on regular intervals. The figures on forest areas for 2000 are given in Table 7. This table says there was 16.7% of the area of Bangladesh under forest coverage in 2000. The data of Forestry Master Plan and BFRI show huge difference. This difference is due to the fact that much of the designated forest areas are without trees. Table 8 shows the decrease of forest over the years. It is alarming that during the last 30 years, 35% – 45% of the forest area has been encroached for different purposes like housing, agriculture, roads, and industries.
Table 7: Forest Area of Bangladesh in 2000 (BFRI, 2000)
|
Hill Forest |
9% |
|
Coastal Forest |
1.3% |
|
Plain Forest |
1.2% |
|
Sundarban |
3.5% |
|
Village Forest |
1.5% |
|
Total |
16.7% |
Table 8 : Decrease in Forest Area (BFRI, 2000)
|
Annual Deforestation Rate |
3% - 4% |
|
Timber production decrease (1985-96) |
11.15% |
|
Decrease in firewood production |
1.2% |
|
Forest Encroachment since 1971 |
35% - 45% |
Decrease of forest means decrease in the supply of biomass fuel in the long run. Table 9 shows selected biomass products from the forest. It shows the shrinkage of fuel wood supply over the years 1990 – 1995. It is to note that also timber, golpata and bamboo are used as fuel after being used as construction material, furniture, etc.
Besides forest, the homestead trees supply a significant amount of fuel wood. In fact, most of the fuel wood consumed by the rural households is supplied by the homestead trees. Mo