ADB and City Group to construct energy-efficient oilseed crushing plant in Bangladesh

The new facility aims to replace an older, less efficient plant, with anticipated savings of 1.3 million cubic meters of water and 1,000 tons of fuel.

The Asian Development Bank (ADB) and Rupshi Seed Crushing Limited, a subsidiary of City Group, have inked a $10 million loan agreement to construct a greenfield, energy-efficient multi-oilseed crushing plant within the City Economic Zone in Narayanganj District, Bangladesh.

The new facility aims to replace an older, less efficient plant, with anticipated savings of 1.3 million cubic meters of water and 1,000 tons of fuel. It is projected to decrease energy costs by 9 kilowatt-hours per ton and reduce greenhouse gas emissions by 1,723 tons annually. Despite these advancements, the production capacity will remain at 3,000 metric tons of soybean seed crushing per day, with workers from the original plant transitioning to the new one. HSBC is also extending an export credit agency-guaranteed parallel loan.

ADB Director General for Private Sector Operations, Suzanne Gaboury, emphasized the critical role of edible oil production in Bangladesh's food security, underscoring the project's alignment with Sustainable Development Goals, particularly zero hunger and responsible consumption and production.

The state-of-the-art plant will boast the capability to process various oilseeds, enhancing resilience against crop failure or price fluctuations. Additionally, the high-protein oilseed cakes produced will be utilized as animal feed. City Group Managing Director, Md. Hasan, highlighted the conglomerate's commitment to sustainable growth and food security, expressing enthusiasm for the collaboration with ADB and HSBC to leverage innovative solutions in the agribusiness sector.

City Group, a major player in Bangladesh's economic landscape for over five decades, dominates a quarter of the edible oil market and operates across diverse sectors, including refined edible oil, flour, sugar, tea, and more. ADB, established in 1966, strives for a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, with ownership spanning 68 members, primarily from the region.