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 emerging as a key contributor in the nation’s clean energy portfolio. The rising adoption of bio mass briquettes and other forms of eco energy has created a vibrant marketplace for producers, traders, and consumers alike. 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 driven the demand for briquette coal—a sustainable solid fuel derived from agricultural waste, sawdust, and other organic residues. As India works toward its renewable energy targets, renewable solid fuels are playing a important role in lowering pollution levels and promoting decentralised energy generation, particularly for rural production sectors.
Defining Biomass and Its Importance in India’s Power Mix
India’s biomass resources includes numerous organic sources available from crop residues and organic matter. With over 500 million tonnes of agricultural residue generated annually, the country holds huge potential for biomass-based power and heat production. This resource can be converted into multiple energy formats such as briquettes and pellets as well as bio-oil and biogas, thereby providing clean substitutes for conventional fossil fuels.
Continuous-heat industries gain from adopting biomass energy—such as cement, textile, and food processing units. These sectors have increasingly turned to biomass briquettes as a clean-burning, cost-efficient replacement 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 produced by compressing dry organic matter such as agricultural and forestry waste into compressed shapes of uniform size. The process improves heat efficiency through drying, making it suitable for high-demand industrial use. These briquettes are consistent in shape, portable, and produce very little ash, ensuring eco-friendly burning and less residue.
Depending on the source material, briquette coal can be divided into various types like biomass or carbonised blends. While pure biomass briquettes use only non-carbonised residue, 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.
Understanding the Cost of Briquettes per Kilogram in India
The price of biomass briquettes per kg in India is influenced by several major determinants, including raw material availability, regional demand, transportation costs, and seasonal variations. In states with strong agro bases like Maharashtra, Punjab, and Haryana, the ready supply of biomass feedstock keeps manufacturing affordable. In contrast, cities and industrial belts where raw materials need to be brought from distant rural areas tend to experience price escalation.
On average, the price of biomass briquettes ranges between ?6 and ?10 per kilogram, depending on energy output and input cost. During peak agricultural seasons, 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 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 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, 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 developing India’s biomass energy base. Policies 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 various incentive schemes.
Additionally, carbon credit mechanisms and renewable purchase obligations (RPOs) have provided economic motivation for clean-fuel users. With the government’s focus on long-term decarbonisation goals, biomass energy is set to become a cornerstone of India’s green growth plan. The creation of organised marketplaces and digital trading platforms has further enhanced transparency and accessibility, enabling buyers and sellers to connect more efficiently.
Barriers and Issues in the Biomass Briquette Industry
Despite its strong potential, the biomass briquette sector faces several briquette coal barriers. Fluctuating feedstock availability can lead to unstable output rates. The absence of uniform product standards also reduces buyer confidence. In some regions, logistical bottlenecks and transportation costs increase the final price for end-users, making coal a cheaper short-term alternative.
Furthermore, low awareness among industrial users remains a major limitation. Addressing these issues through enhanced production systems and policy support could help strengthen sectoral confidence and expansion.
The Economic and Environmental Benefits of Bio Mass Briquettes
The adoption of bio mass briquettes provides both commercial and green advantages. For industries, transitioning to biomass lowers operational expenditure and emission costs. On a national scale, it supports local economies by creating demand for agricultural residues and offering new income streams for farmers. Environmentally, briquettes help combat climate change and improve air quality.
As the market expands and develops, innovations in briquetting technology, moisture control, and waste utilisation are expected to make production cheaper and faster. The establishment of decentralised briquette production units near agricultural zones can further cut logistic expenses and improve accessibility.
Summary
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 sustained advantages surpass temporary challenges. With continued investment, policy support, and innovation, India is on track to make biomass a cornerstone of its green energy future.