Biomass & Briquette Market in India: Exploring Price Patterns and the Nation’s Increasing Move Toward Biofuel Solutions
India’s green energy sector is undergoing swift transformation, with biomass emerging as a key contributor in the nation’s eco-friendly power strategy. 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 increasing focus on renewable power has boosted the demand for biocoal briquettes—a densified, eco-friendly 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 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 plants, textile mills, and food factories. 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 supports local livelihoods and enhances the value of agricultural residues that would otherwise go to waste.
Manufacturing and Material Structure of Briquette Coal
Briquette coal is manufactured through high-pressure densification such as crop residues, wood shavings, and other biodegradable waste into compressed shapes of uniform size. The process eliminates moisture and enhances the calorific value, making it suitable for high-demand industrial use. These briquettes are uniform in size, easy to transport, and generate minimal ash content, ensuring eco-friendly burning and less residue.
Depending on the raw input, briquette coal can be categorised into biomass briquettes, bio coal, or mixed blends. While pure biomass briquettes use only non-carbonised residue, hybrid 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 feedstock type and compaction level.
Briquette Price Trends Across India
The cost of briquette fuel per kilogram in India is influenced by several core variables, including raw material availability, regional demand, transportation costs, and seasonal variations. In agricultural states such as Maharashtra, Punjab, Haryana, and Uttar Pradesh, the ready supply of biomass feedstock keeps production costs relatively low. In contrast, urban and industrial areas where raw materials need to be transported from rural regions tend to experience higher pricing.
On average, the price of biomass briquettes ranges between ?6 and ?10 per kilogram, depending on calorific value and production efficiency. During harvest periods, when supply is abundant, prices tend to be more affordable. However, in off-seasons or when transport challenges arise, prices briquettes price per kg may increase because of shortages and logistical delays. Despite these variations, briquettes remain an economical alternative to coal, which can cost significantly more per unit of heat energy produced.
Comparing Biomass Briquettes and Traditional Coal
The shift from coal to biomass briquettes offers multiple benefits in terms of clean energy transition and cost control. Briquettes burn more cleanly, producing less sulphur dioxide and particulate matter, which helps industries maintain green standards. Their even density promotes stable burning, reducing equipment maintenance and improving energy output. Moreover, briquettes are eco-renewable and emission-balanced, as the carbon dioxide released during combustion is reabsorbed by new plant growth.
In contrast, coal burning leads to higher carbon levels, climate damage and ecological loss. Its production and supply chain are also highly polluting and resource-draining. By replacing even a portion of industrial coal consumption with biomass briquettes, India can greatly reduce emissions while supporting rural fuel economies.
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, carbon credit mechanisms and renewable purchase obligations (RPOs) have provided financial incentives for companies using biomass fuels. 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 enhanced transparency and accessibility, enabling buyers and sellers to connect more efficiently.
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 lack of standardisation in quality and calorific value 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 build resilience in the coming years.
Advantages of Using Biomass Briquettes
The adoption of biomass briquettes provides both financial and ecological benefits. For industries, using briquettes minimises expenses and regulatory risks. On a national scale, it supports local economies by creating demand for agricultural residues and offering new income streams for farmers. 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 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 continued investment, policy support, and innovation, India is on track to make biomass a cornerstone of its green energy future.