Indian Biomass and Briquette Market: Examining Price Movements and the Expanding Transition to Biofuel Options
India’s renewable energy landscape is rapidly evolving, with biomass becoming a major pillar in the nation’s clean energy portfolio. 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 seek affordable, sustainable substitutes to coal and other fossil fuels.
The rising awareness of clean fuel usage has driven the demand for compressed biomass 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 important role in lowering pollution levels and promoting decentralised energy generation, particularly for rural production sectors.
What Biomass Means and How It Supports India’s Energy Goals
Biomass potential in India includes numerous organic sources available from farmlands, forests, and biodegradable waste. With over half a billion tonnes of crop waste produced each year, the country holds immense potential for biomass utilisation in power generation and thermal energy. This resource can be converted into different usable fuels such as briquettes and pellets as well as bio-oil 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 mass briquettes as a sustainable and affordable option for traditional fuels. In addition to lowering carbon footprints, the widespread use of biomass supports local livelihoods and enhances the value of agricultural residues that would otherwise go to waste.
Manufacturing and Material Structure of Briquette Coal
Biocoal briquettes is manufactured through high-pressure densification 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 large-scale industrial applications. 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 classified as biomass, biocoal, or hybrid briquettes. While pure biomass briquettes use only non-carbonised residue, bio coal briquettes often contain a small portion of carbonised material to increase heat output. Their heating value typically ranges from 3500 to 5000 kcal/kg, depending on the organic mix and manufacturing process.
Analysing Briquettes Price per Kg in India
The cost of briquette fuel per kilogram in India is influenced by several key factors, including feedstock supply, logistics, and market trends. In agricultural states such as Maharashtra, Punjab, Haryana, and Uttar Pradesh, the ready supply of biomass feedstock keeps manufacturing affordable. In contrast, cities and industrial belts where raw materials need to be shipped over long distances tend to experience increased costs.
On average, the price of biomass briquettes ranges between ?6 and ?10 per kilogram, depending on energy output and input cost. During times of biomass surplus, when supply is bio mass briquettes abundant, prices tend to be more affordable. However, in monsoon months or during high-demand industrial periods, prices may fluctuate upward from supply constraints. Despite these variations, briquettes remain cheaper than most fossil fuels, which can cost much higher per thermal unit.
Biomass Briquettes vs Conventional Coal
The substitution of coal with bio mass briquettes 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 renewable and carbon-neutral, as the carbon dioxide released during combustion is balanced naturally through vegetation cycles.
In contrast, coal burning leads to higher carbon levels, air pollution, and environmental degradation. 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 supporting rural fuel economies.
Biomass in India: Policy Support and Market Growth
Government initiatives have been instrumental in expanding the biomass sector. Policies promoting clean fuel adoption and emission reduction have stimulated wider use of green fuels. The MNRE and related departments has supported the development of bioenergy projects and briquette industries through various incentive schemes.
Additionally, carbon credit mechanisms and renewable purchase obligations (RPOs) have provided monetary benefits to eco-conscious industries. With the government’s focus on a carbon-neutral India by 2070, biomass energy is set to become a cornerstone of India’s sustainable energy roadmap. The creation of organised marketplaces and digital trading platforms has further simplified procurement and pricing, enabling fair market participation.
Challenges Facing the Biomass Briquette Market
Despite its promising growth, the biomass briquette sector faces several challenges. Seasonal variations in raw material supply can lead to inconsistent production levels. The inconsistent heating efficiency also hampers market reliability. In some regions, logistical bottlenecks and transportation costs increase the overall cost of delivery, making coal a more attractive in the short term.
Furthermore, low awareness among industrial users remains a barrier to widespread adoption. Addressing these issues through upgraded logistics, standard guidelines, and public outreach could help strengthen sectoral confidence and expansion.
The Economic and Environmental Benefits of Bio Mass Briquettes
The adoption of bio-coal fuel provides both economic and environmental gains. For industries, transitioning to biomass lowers operational expenditure and emission costs. 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 processing efficiency and drying techniques are expected to make production more efficient and affordable. The establishment of small-scale plants close to farms 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 consistent public and private sector engagement, India is on track to make biomass a cornerstone of its green energy future.