Dec 13, 2024
| TCW Report | The Climate Watch
Ammonia and hydrogen co-firing technologies could extend the life of fossil fuel projects and hinder the country’s transition to renewable energy, experts warn
Bangladesh has been urged to reject the adoption of ammonia and hydrogen co-firing technologies, which critics say could extend the life of fossil fuel projects and hinder the country’s transition to renewable energy.
Experts said these on Friday, the last day of the three-day conference called Bangladesh Energy Prosperity 2050 in Dhaka, insisting on sustainable energy solutions aligned with global climate commitments.
Marika Kita, program staff at the Japan Center for Sustainable Environment and Society (JACSES), advised Bangladesh against accepting Japan’s support for ammonia and hydrogen co-firing technologies, warning that these solutions would only prolong the life of fossil fuel projects in the country.
Kita delivered a presentation titled “Japan’s Addiction to False Solutions”, outlining several recommendations aimed at steering Bangladesh toward more sustainable energy practices.
Kita criticised Japan’s Green Transformation (GX) strategy, which promotes thermal power generation technologies that mix ammonia and hydrogen or use single firing and carbon capture and storage (CCS).
She argued that Japan’s focus on such “innovative technologies” could delay necessary progress in reducing reliance on fossil fuels.
As part of its GX strategy, Japan aims to introduce 20% ammonia co-firing by 2030 and single firing by 2040, alongside utilities.
“I suggest Bangladesh not accept the IEPMP master plan proposed by JICA, withdraw the ammonia/hydrogen co-firing proposal, and instead establish a path for significant renewable energy adoption based on a 2050 net-zero scenario,” Kita said.
Kita also highlighted that Japan’s promotion of these technologies contradicts the commitments made by G7 nations. The G7 pledged to “end new direct public financing for the international unabated fossil fuel sector by the end of 2022, except in limited circumstances clearly defined by each country, consistent with a 1.5°C warming limit and the goals of the Paris Agreement.”
Sarmin Akter Bristy, fossil fuel campaigner of the NGO Forum on the Asian Development Bank (ADB), said in a PowerPoint presentation that the ADB is a leading financial investor in Bangladesh, with 804 projects spanning 13 different sectors. Among these, the energy sector represents the second-largest area of focus, with 131 projects.
From 2010 to the present, the ADB has provided a total financing of $4.63 billion, comprising $4,220 million in loans, $400 million in technical assistance loans, and $8.1 million in grants. However, the majority of the ADB’s funding comes in the form of loans, with limited contributions to grants and technical assistance.
She said, “A closer examination of ADB’s energy portfolio reveals that fossil fuel and pipeline financing accounts for $834 million, while renewable energy financing is substantially lower at $107.025 million.
“The largest share of its energy investments, totaling $2,184.35 million, is directed toward transmission and distribution projects, highlighting a heavy reliance on traditional infrastructure over renewable energy development.”
The Asian Infrastructure Investment Bank (AIIB), in contrast, exclusively provides loans without offering any grants or technical assistance financing.
Since its inception in 2016, AIIB has supported 26 projects in Bangladesh, including 10 in the energy sector. Notably, the AIIB has allocated $1,115 million to transmission and distribution projects and $230 million to gas and pipeline projects. However, the AIIB’s contribution to renewable energy is non-existent, signaling a lack of commitment to sustainable energy development in Bangladesh.
Both the ADB and the AIIB’s funding patterns reveal a significant focus on fossil fuel with limited investments in renewable energy, raising concerns about their alignment with global climate goals and Bangladesh’s transition toward a sustainable energy future.
Rayyan Hasan, executive director of NGO Forum on the ADB, and Donna Lisenby, president of Riverfox Environmental, moderated and chaired the programme respectively. Hong Yongglak from Solution For Our Climate (SFOC) also addressed at the programme.
Terming fossil fuel projects harmful for the community, Donna said, “It is truly articulate they have economic and environmental impact. But the existing business model in the fossil fuel sector is continuing. The developed nations are doing business at places where there are real impacts of fossil fuel.”
In the closing session, more experts including Prof Ijaz Hossain and Waterkeepers Bangladesh Coordinator Sharif Jamil addressed.
News Link: Bangladesh asked to scrap ammonia, hydrogen power projects