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-fuel briquettes and other forms of renewable fuel has created a vibrant marketplace for producers and industrial buyers. In recent years, the cost per kilogram of briquettes has become a significant factor influencing industrial fuel choices, especially as industries look for affordable, sustainable substitutes to coal and other fossil fuels.
The increasing focus on renewable power has boosted the demand for biocoal briquettes—a sustainable solid fuel derived from agricultural waste, sawdust, and other organic residues. As India continues to pursue its renewable energy targets, biomass-based fuels are playing a pivotal role in reducing carbon emissions and promoting energy independence, particularly for rural production sectors.
Understanding Biomass and Its Role in India’s Energy Sector
Biomass in India includes numerous organic sources available from crop residues and organic matter. With over half a billion tonnes of crop waste produced each year, the country holds huge potential for biomass utilisation in power generation and thermal energy. This resource can be converted into various forms of energy such as solid, liquid, and gaseous biofuels, thereby providing clean substitutes for conventional fossil fuels.
Industries needing consistent thermal output benefit greatly from biomass fuel—such as cement, textile, and food processing units. These sectors have increasingly turned to bio-coal briquettes as a green, low-cost substitute for traditional fuels. In addition to minimising pollution, the widespread use of biomass creates rural job opportunities and enhances the value of agricultural residues that would otherwise go to waste.
Manufacturing and Material Structure of Briquette Coal
Briquette coal is created by compacting dry biomass such as crop residues, wood shavings, and other biodegradable waste into dense fuel logs or blocks. The process improves heat efficiency through drying, making it suitable for high-demand industrial use. These briquettes are compact, easy to handle, and ensure clean combustion, ensuring cleaner combustion compared to traditional coal.
Depending on the feedstock, briquette coal can be divided into various types like biomass or carbonised blends. While biomass briquettes are made purely from organic waste, carbonised 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 composition and density of the material used.
Briquette Price Trends Across India
The price of biomass briquettes per kg in India is influenced by several major determinants, including availability of residues and distance from production sites. In key biomass-producing regions such as Punjab and Maharashtra, the abundance of crop residues like rice husk and sugarcane bagasse keeps prices competitive. In contrast, non-agricultural zones where raw materials need to be shipped over long distances tend to experience price escalation.
On average, the price of biomass briquettes typically falls in the ?6–?10/kg range, depending on heat value and quality control. During times of biomass surplus, when supply is abundant, prices tend to stabilise. However, in monsoon months or during high-demand industrial periods, prices may rise due to limited feedstock availability and increased transportation costs. Despite these variations, briquettes remain a cost-effective fuel compared to traditional coal, which can cost much higher per thermal unit.
Biomass Briquettes vs Conventional Coal
The replacement of coal by biomass fuel offers multiple gains in terms of eco performance and production reliability. Briquettes emit fewer pollutants and toxic gases, which helps industries comply with emission norms. Their standardised form enhances boiler efficiency, reducing machine wear and boosting performance. Moreover, briquettes are derived from sustainable sources, as the carbon dioxide released during combustion is offset through photosynthesis.
In contrast, traditional coal contributes heavily to greenhouse gas emissions, climate damage and ecological loss. Its extraction and transportation processes are also highly polluting and resource-draining. By replacing even a portion of industrial coal consumption with biomass briquettes, India can greatly reduce emissions while supporting rural fuel economies.
Government Support and Biomass Sector Expansion in India
Government initiatives have significantly contributed in expanding the biomass sector. Policies promoting clean fuel adoption and emission reduction have stimulated wider use of green fuels. The Ministry of New and Renewable Energy (MNRE) has supported the development of biomass power plants and briquetting units through grants and funding initiatives.
Additionally, green energy credits and policy mandates have provided monetary benefits to eco-conscious industries. With the government’s focus on achieving net-zero bio mass briquettes emissions by 2070, 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 improved efficiency and reach, enabling smoother trade operations.
Barriers and Issues in the Biomass Briquette Industry
Despite its strong potential, the biomass briquette sector faces several barriers. Fluctuating feedstock availability can lead to unstable output rates. The absence of uniform product standards also creates uncertainty for industrial users. In some regions, logistical bottlenecks and transportation costs increase the final price for end-users, making coal a more attractive in the short term.
Furthermore, low awareness among industrial users remains a key challenge for expansion. Addressing these issues through upgraded logistics, standard guidelines, and public outreach could help stabilise the market and ensure sustainable growth.
The Economic and Environmental Benefits of Bio Mass 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 macroeconomic level, it enhances farmer earnings through residue monetisation. Environmentally, briquettes limit forest depletion, lower carbon impact, and control air pollution.
As the market continues to mature, innovations in machinery design and feedstock management are expected to make production more efficient and affordable. The establishment of rural briquette hubs can further reduce transportation costs and ensure year-round availability.
Final Thoughts
India’s biomass sector represents a critical opportunity for meeting clean energy targets and supporting rural growth. The increasing demand for biomass fuel and bio mass briquettes reflects a country-wide movement toward sustainable energy use. Although the fuel briquette rate may vary across regions and seasons, the overall gains exceed occasional cost changes. With continued investment, policy support, and innovation, India is on track to make biomass a cornerstone of its green energy future.