The textile water recycling pilot combines technical innovation with a new financing model, aiming to reduce the environmental impact of garment manufacturing in Bangladesh while helping factories meet regulatory and market demands.
Led by Solidaridad Network Asia and QStone Capital, the project is funded by the Sustainable Manufacturing and Environmental Pollution (SMEP) programme.
The project operates a 5m³/hr modular plant at Zaber & Zubair Fabrics, a vertically integrated textiles mill in Dhaka.
Designed by Lenntech Water Solutions and installed by Kingsley Engineering Services, this plant employs a three-stage process that includes ultrafiltration, dual reverse osmosis, and advanced oxidation to treat and recycle water.
According to SMEP, the modular plant is capable of recycling up to 85% of textile wastewater.
During a technical webinar in February 2026, the project team presented initial results to industry stakeholders.
Rajib from Kingsley, who led the technical presentation, said: “From a technical perspective, the challenging part isn’t recycling the water—it’s managing the concentrated residual wastewater, referred to as brine.”
The project team has tailored solutions for different textile operations, including neat and open dyeing factories, denim washing facilities, and sweater washing processes.
Operational costs for 70% water recycling and managing 30% brine range from $0.12 to $0.30 per cubic metre of recycled water. Capital expenditure for scaling up to a 100m³/hr plant is estimated between $0.9m and $2m.
Following successful trials at Zaber & Zubair Fabrics, the mobile pilot unit will move to a denim washing facility operated by Designer Fashion (Bengal Group).
Data from both sites will be used to compile a technical report on performance across varying wastewater characteristics.
The financing structure proposed by QStone Capital introduces a model that adapts principles from carbon credits but applies them to water usage and pollution avoidance.
Two main elements underpin this approach: a voluntary 1% surcharge at retail checkouts for garments produced with water-efficient methods and blockchain-based digital certificates termed water credits or tokens to verify reduced pollution at the factory level.
QStone Capital CEO Jeroen Tielman stated that the 1% surcharge would be collected directly from buyers at retail checkout on a voluntary opt-in basis, in the same way as when customers choose to purchase a bag at the till.
This approach, he said, creates a connection between consumers and factories.
Funds raised would be managed by an independent foundation or fund to help subsidise factories’ upgrades towards zero liquid discharge systems. QStone expects to generate up to $700m per year in Bangladesh alone.
"The beauty of this system is it provides transparent, independently verified proof of sustainability without interfering with existing business relationships between brands and factories," Tielman said.
The next phase of the SMEP pilot aims for full zero liquid discharge without reliance on evaporation systems, targeting further cost reductions and environmental benefits.
Results from ongoing denim washing trials are expected within one month.
