Biomass & Briquette Market in India: Exploring Price Patterns and the Nation’s Increasing Move Toward Biofuel Solutions
The renewable energy domain in India is witnessing rapid evolution, with biomass becoming a major pillar in the nation’s eco-friendly power strategy. The rising adoption of bio mass briquettes and other forms of eco energy 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 seek affordable, sustainable substitutes to coal and other fossil fuels.
The increasing focus on renewable power has boosted the demand for biocoal briquettes—a densified, eco-friendly fuel derived from agro-waste and forest residues. As India advances in achieving its renewable energy targets, renewable solid fuels are playing a important role in lowering pollution levels and promoting self-sufficiency in energy, particularly for village-based enterprises and small factories.
What Biomass Means and How It Supports India’s Energy Goals
India’s biomass resources comprises a wide array of natural residues available from farmlands, forests, and biodegradable waste. With over 500 million tonnes of agricultural residue generated annually, the country holds considerable potential for using biomass in industrial energy generation. This resource can be converted into multiple energy formats such as briquettes, pellets, biochar, and biogas, thereby providing sustainable alternatives to coal and petroleum-based fuels.
Biomass energy is particularly beneficial for industries that rely on continuous heat generation—such as manufacturing, textile, and agro-processing sectors. These sectors have increasingly turned to biomass briquettes as a clean-burning, cost-efficient replacement for traditional fuels. In addition to reducing emissions, the widespread use of biomass contributes to rural employment and utilises waste effectively that would otherwise go to waste.
How Briquette Coal Is Made and Its Composition
Biomass briquette fuel is produced by compressing dry organic matter such as agricultural and forestry waste into solid cylindrical or rectangular blocks. The process improves heat efficiency through drying, making it suitable for large-scale industrial applications. These briquettes are consistent in shape, portable, and produce very little ash, ensuring a more efficient and cleaner burn.
Depending on the source material, briquette coal can be classified as biomass, biocoal, or hybrid briquettes. While biomass briquettes are made purely from organic waste, bio coal briquettes often contain a small portion of charcoal to enhance calorific value. Their heating value typically ranges from 3,500–5,000 kcal/kg on average, depending on the composition and density of the material used.
Analysing Briquettes Price per Kg in India
The price of biomass briquettes per kg in India is influenced by several major determinants, including feedstock supply, logistics, and market trends. In key biomass-producing regions such as Punjab and Maharashtra, the easy access to agro-waste 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 energy output and input cost. 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 advantages 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 renewable and carbon-neutral, as the carbon dioxide released during combustion is offset through photosynthesis.
In contrast, traditional coal contributes heavily to greenhouse gas emissions, and long-term air quality decline. Its extraction and transportation processes are also destructive to land and wildlife. By replacing even a portion of industrial coal consumption with biomass briquettes, 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 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 bioenergy projects and briquette industries through various incentive schemes.
Additionally, green energy credits and policy mandates have provided financial incentives for companies using biomass fuels. With the government’s focus on achieving net-zero emissions by 2070, biomass energy is recognised as an essential pillar of India’s sustainable energy roadmap. The creation of structured biomass markets has further simplified procurement and pricing, enabling fair market participation.
Obstacles Affecting India’s Biomass Briquette Sector
Despite its rapid progress, the biomass briquette sector faces several limitations. Inconsistent residue supply across seasons 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, limited awareness about the long-term economic and environmental benefits remains a major limitation. Addressing these issues through enhanced production systems and policy support could help strengthen sectoral confidence and expansion.
Advantages of Using Biomass Briquettes
The adoption of bio mass briquettes provides both financial and ecological benefits. 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 grows steadily, innovations in machinery design and feedstock management are expected to make production smoother and cost-effective. The establishment of rural briquette hubs can further stabilise supply throughout the year.
Conclusion
India’s renewable fuel sector offers a major chance for achieving sustainable energy goals while addressing rural economic development. The increasing demand for bio coal and compressed bio briquettes reflects a nationwide transition toward cleaner and more affordable fuels. Although the biomass briquette cost may differ by briquettes price per kg area and timing, the sustained advantages surpass temporary challenges. With ongoing technological development and government backing, biomass energy is set to become one of the key pillars of India’s renewable energy future.