Indian Biomass and Briquette Market: Examining Price Movements and the Expanding Transition to Biofuel Options
India’s green energy sector is undergoing swift transformation, with biomass emerging as a key contributor 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 key 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.
Defining Biomass and Its Importance in India’s Power Mix
India’s biomass resources comprises a wide array of natural residues available from agriculture, forestry, and organic waste streams. 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 and pellets as well as bio-oil 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 created by compacting dry biomass such as agricultural and forestry 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 consistent in shape, portable, and produce very little ash, ensuring cleaner combustion compared to traditional coal.
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 organic mix and manufacturing process.
Analysing Briquettes Price per Kg in India
The briquettes price 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 increased costs.
On average, the price of biomass briquettes varies from ?6 to ?10/kg, depending on energy output and input cost. During peak agricultural seasons, when supply is abundant, prices tend to stabilise. However, in off-seasons or when transport challenges arise, prices may fluctuate upward from supply constraints. Despite these variations, briquettes remain an economical alternative to coal, which can cost almost double per energy output.
Comparing Biomass Briquettes and Traditional Coal
The shift from coal to biomass briquettes offers multiple benefits in terms of environmental sustainability and operational efficiency. Briquettes generate minimal smoke and ash, which helps industries meet environmental regulations. Their uniform size ensures consistent combustion, reducing operational downtime. Moreover, briquettes are eco-renewable and emission-balanced, as the carbon dioxide released during combustion is balanced naturally through vegetation cycles.
In contrast, conventional coal fuels add to major pollution, air pollution, and environmental degradation. Its mining and logistics are also destructive to land and wildlife. By replacing even a portion of coal usage in factories with bio-briquettes, India can move closer to net-zero goals while promoting localised fuel production.
Policies and Growth Drivers for Biomass Energy in India
Government initiatives have significantly contributed in expanding the biomass sector. Policies promoting sustainability and job creation 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 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 end-market expense, 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.
Economic and Ecological Value of Biofuel Briquettes
The adoption of biomass 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 expands and develops, innovations in briquetting technology, moisture control, and waste utilisation are expected to make production smoother and cost-effective. The establishment of decentralised briquette production units near briquettes price per kg agricultural zones can further stabilise supply throughout the year.
Conclusion
The nation’s biomass industry stands as a key pillar 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 area and timing, the long-term benefits of using biomass as an energy source far outweigh short-term fluctuations. With ongoing technological development and government backing, biomass energy is set to become one of the key pillars of India’s renewable energy future.