Regional : South Asia Subregional Economic Cooperation Green Fuel Development Initiative

Sovereign Project | 56096-001

The regional knowledge and support technical assistance (TA) aims to support the South Asia region in transitioning from fossil fuels to carbon-free 'green fuels such as advanced biofuels and green hydrogen as well as green ammonia. As the energy sector's regional cooperation and integration, the TA will launch Green Fuel Development Initiative under the South Asia Subregional Economic Cooperation (SASEC) platform, which covers seven countries including Bangladesh, Bhutan, India, Maldives, Myanmar, Nepal, and Sri Lanka. This initiative frameworks were endorsed by the SASEC energy working group meeting and its nodal officers meeting in June 2022. The TA will assess each country's and the region's market potential for various types of green fuels across multiple sectors including energy, transport, manufacturing, agriculture, and others. Transnational supply and value chains will also analyzed.

Project Details

Project Name South Asia Subregional Economic Cooperation Green Fuel Development Initiative
Project Number 56096-001
Country / Economy Regional
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 10020-REG: South Asia Subregional Economic Cooperation Green Fuel Development Initiative
Japan Fund for Prosperous and Resilient Asia and the Pacific US$ 2.00 million
Operational Priorities OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
OP7: Fostering regional cooperation and integration
Sector / Subsector

Energy / Renewable energy generation - biomass and waste

Gender Some gender elements
Description The regional knowledge and support technical assistance (TA) aims to support the South Asia region in transitioning from fossil fuels to carbon-free 'green fuels such as advanced biofuels and green hydrogen as well as green ammonia. As the energy sector's regional cooperation and integration, the TA will launch Green Fuel Development Initiative under the South Asia Subregional Economic Cooperation (SASEC) platform, which covers seven countries including Bangladesh, Bhutan, India, Maldives, Myanmar, Nepal, and Sri Lanka. This initiative frameworks were endorsed by the SASEC energy working group meeting and its nodal officers meeting in June 2022. The TA will assess each country's and the region's market potential for various types of green fuels across multiple sectors including energy, transport, manufacturing, agriculture, and others. Transnational supply and value chains will also analyzed. Based on the studies, the TA will also identify immediate applications of green fuels to help design pilot project schemes for demonstration purposes in selected countries. Subject to each country's conditions and requirements, development strategies and roadmaps will be provided in both country's and region's contexts. Eventually, various capacity and knowledge activities can be integrated to increase awareness of stakeholders on development and promotion of green fuels.
Project Rationale and Linkage to Country/Regional Strategy

Energy security. All the South Asian countries are net oil importers, and are expanding the use of natural gas and liquidated petroleum gas. Since the conflict between the Ukraine and Russia, global fuel prices have been soaring and the local fuel demand and supply situation has drastically been impacted. This fundamental commodity's market change has triggered inflationary effects rapidly on overall economies across the countries and has raised the immediate energy security concerns.

Climate change. In many SASEC member countries, most of power generation is still dependent on thermal power plants with conventional fossil fuelspetroleum, natural gas, and coal. Other energy usage for transport, industry, and agriculture largely relies on fossil fuels. The emissions from these sectors are increasing along with economic growth and fossil fuels cater to the majority of the greenhouse gas emissions.

Green recovery. The green fuel development is expected to have a transformational effect on the domestic and regional economy through a new market creation. In the long run, it will contribute to green industry and local job creation. This is because these alternative fuels can be used for extensive industries.

Impact

Usage of green fuels increased in multiple sectors across the SASEC countries

Project Outcome
Description of Outcome

Readiness for pilot project investments in green fuel development and business enhanced

Progress Toward Outcome
Implementation Progress
Description of Project Outputs

SASEC country-specific and regional market studies on green fuel development prepared

Green fuel development solutions designed

Regional development strategies and road maps on green fuel supply chain systems developed

Awareness of and knowledge sharing on green fuel development improved

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Regional
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services NA
Procurement NA
Responsible ADB Officer Ogino, Kaoru
Responsible ADB Department Sectors Group
Responsible ADB Division Energy Sector Office (SG-ENE)
Executing Agencies
Asian Development Bank
Timetable
Concept Clearance 02 Sep 2022
Fact Finding -
MRM -
Approval 07 Dec 2022
Last Review Mission -
Last PDS Update 08 Dec 2022

TA 10020-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
07 Dec 2022 - 07 Dec 2022 31 Dec 2025 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 2,000,000.00 0.00 0.00 0.00 0.00 2,000,000.00 09 Sep 2023 295,161.00

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Tenders

Tender Title Type Status Posting Date Deadline
Consulting Firm Firm - Consulting Closed

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.