Biomass & Briquette Market in India: Exploring Price Patterns and the Nation’s Increasing Move Toward Biofuel Solutions
India’s green energy sector is undergoing swift transformation, with biomass emerging as a key contributor in the nation’s eco-friendly power strategy. The rising adoption of bio mass briquettes and other forms of renewable fuel has created a vibrant marketplace for manufacturers, suppliers, and users alike. In recent years, the cost per kilogram of briquettes has become a significant factor affecting fuel procurement decisions, especially as industries pursue low-cost, environment-friendly options to coal and other fossil fuels.
The rising awareness of clean fuel usage has accelerated the demand for biocoal briquettes—a sustainable solid fuel derived from farm residues, wood dust, and biodegradable materials. As India works toward its renewable energy targets, renewable solid fuels are playing a important role in reducing carbon emissions and promoting decentralised energy generation, particularly for rural production sectors.
Understanding Biomass and Its Role in India’s Energy Sector
Biomass in India refers to the vast range of organic materials available from crop residues and organic matter. With over half a billion tonnes of crop waste produced each year, the country holds considerable potential for biomass utilisation in power generation and thermal energy. This resource can be converted into various forms of energy such as briquettes, pellets, biochar, and biogas, thereby providing sustainable alternatives to coal and petroleum-based fuels.
Industries needing consistent thermal output benefit greatly from biomass fuel—such as manufacturing, textile, and agro-processing sectors. These sectors have increasingly turned to bio-coal briquettes as a clean-burning, cost-efficient replacement for traditional fuels. In addition to reducing emissions, the widespread use of biomass creates rural job opportunities and utilises waste effectively that would otherwise go to waste.
How Briquette Coal Is Made and Its Composition
Biocoal briquettes is created by compacting dry biomass such as agricultural and forestry waste into compressed shapes of uniform size. The process improves heat efficiency through drying, making it suitable for industrial boilers and furnaces. These briquettes are compact, easy to handle, and ensure clean combustion, ensuring cleaner combustion compared to traditional coal.
Depending on the source material, briquette coal can be categorised into biomass briquettes, bio coal, or mixed blends. While biomass briquettes are made purely from organic waste, hybrid briquettes often contain a small portion of carbon matter for higher combustion efficiency. Their heating value typically ranges from 3,500–5,000 kcal/kg on average, depending on the organic mix and manufacturing process.
Briquette Price Trends Across India
The cost of briquette fuel per kilogram in India is influenced by several major determinants, including feedstock supply, logistics, and market trends. In states with strong agro bases like Maharashtra, Punjab, and Haryana, the easy access to agro-waste keeps production costs relatively low. In contrast, non-agricultural zones where raw materials need to be brought from distant rural areas tend to experience price escalation.
On average, the price of biomass briquettes varies from ?6 to ?10/kg, depending on calorific value and production efficiency. During times of biomass surplus, when supply is abundant, prices tend to be more affordable. However, in rainy seasons or energy-demand surges, prices may fluctuate upward from supply constraints. Despite these variations, briquettes remain an economical alternative to coal, which can cost much higher per thermal unit.
Biomass Briquettes vs Conventional Coal
The shift from coal to biomass briquettes offers multiple advantages in terms of clean energy transition and cost control. Briquettes generate minimal smoke and ash, which helps industries comply with emission norms. Their uniform size ensures consistent combustion, reducing machine wear and boosting performance. Moreover, briquettes are eco-renewable and emission-balanced, as the carbon dioxide released during combustion is offset through photosynthesis.
In contrast, conventional coal fuels add to major pollution, climate damage and ecological loss. Its production and supply chain are also highly polluting and resource-draining. By replacing even a portion of coal demand through renewable substitutes, India can move closer to net-zero goals while promoting localised fuel production.
Government Support and Biomass Sector Expansion in India
Government initiatives have significantly contributed in expanding the biomass sector. Policies briquette coal promoting sustainability and job creation have encouraged industries to adopt biomass-based fuels. The MNRE and related departments has supported the development of biomass generation facilities through subsidies and financial assistance programs.
Additionally, carbon trading programs and RPO compliance rules have provided economic motivation for clean-fuel users. With the government’s focus on long-term decarbonisation goals, biomass energy is positioned as a key component of India’s long-term energy strategy. The creation of online biofuel exchanges and transparent trade systems has further simplified procurement and pricing, enabling fair market participation.
Challenges Facing the Biomass Briquette Market
Despite its strong potential, the biomass briquette sector faces several limitations. Seasonal variations in raw material supply can lead to variability in supply. The inconsistent heating efficiency also reduces buyer confidence. In some regions, supply chain inefficiencies increase the overall cost of delivery, making coal a cheaper short-term alternative.
Furthermore, low awareness among industrial users remains a key challenge for expansion. Addressing these issues through improved infrastructure, better quality control, and government-backed awareness campaigns could help build resilience in the coming years.
Advantages of Using Biomass Briquettes
The adoption of bio-coal fuel provides both economic and environmental gains. For industries, switching to briquettes reduces fuel expenses, maintenance costs, and environmental compliance penalties. On a broader economic front, it stimulates rural economies and promotes waste utilisation. Environmentally, briquettes reduce deforestation, curb greenhouse gas emissions, and minimise waste burning.
As the market continues to mature, innovations in machinery design and feedstock management are expected to make production smoother and cost-effective. The establishment of decentralised briquette production units near agricultural zones can further cut logistic expenses and improve accessibility.
Final Thoughts
The nation’s biomass industry stands as a key pillar for balancing sustainability with inclusive progress. The increasing demand for biomass fuel and biomass briquette fuel reflects a shift toward renewable energy alternatives. Although the biomass briquette cost may vary across regions and seasons, the sustained advantages surpass temporary challenges. With ongoing technological development and government backing, India is on track to make biomass a cornerstone of its green energy future.