Biomass & Briquette Market in India: Exploring Price Patterns and the Nation’s Increasing Move Toward Biofuel Solutions
India’s renewable energy landscape is rapidly evolving, with biomass playing a significant role in the nation’s clean energy portfolio. The rising adoption of bio-fuel briquettes and other forms of renewable fuel has created a dynamic market for manufacturers, suppliers, and users alike. In recent years, the cost per kilogram of briquettes has become a key factor shaping industrial energy preferences, 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 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 potential 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 immense 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 lowering carbon footprints, 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 eliminates moisture and enhances the calorific value, 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.
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 cheaper than most fossil fuels, 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 briquette coal 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 highly polluting and resource-draining. 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 played a major role 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 a carbon-neutral India by 2070, biomass energy is recognised as an essential pillar of India’s green growth plan. The creation of structured biomass markets has further simplified procurement and pricing, enabling fair market participation.
Challenges Facing the Biomass Briquette Market
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 commercial and green advantages. 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 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 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 area and timing, the sustained advantages surpass temporary challenges. With consistent public and private sector engagement, biomass energy is set to become one of the key pillars of India’s renewable energy future.