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 sustainable energy mix. The rising adoption of biomass briquettes and other forms of eco energy has created a growing sector for producers, traders, and consumers alike. In recent years, the price per kg of briquettes has become a crucial factor affecting fuel procurement decisions, especially as industries look for low-cost, environment-friendly options 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 farm residues, wood dust, and biodegradable materials. As India works toward its renewable energy targets, renewable solid fuels are playing a crucial role in cutting greenhouse gas output 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 farmlands, forests, and biodegradable waste. 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 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.
Biomass energy is particularly beneficial for industries that rely on continuous heat generation—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 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 eliminates moisture and enhances the calorific value, making it suitable for large-scale industrial applications. These briquettes are consistent in shape, portable, and produce very little ash, ensuring a more efficient and cleaner burn.
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, carbonised 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.
Understanding the Cost of Briquettes per Kilogram in India
The cost of briquette fuel per kilogram in India is influenced by several major determinants, including availability of residues and distance from production sites. In key biomass-producing regions such as Punjab and Maharashtra, the ready supply of biomass feedstock keeps manufacturing affordable. In contrast, urban and industrial areas 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 calorific value and production efficiency. During harvest periods, when supply is abundant, prices tend to stabilise. However, in off-seasons or when transport challenges arise, prices may increase because of shortages and logistical delays. Despite these variations, briquettes remain a cost-effective fuel compared to traditional coal, which can cost much higher per thermal unit.
Biomass Briquettes vs Conventional Coal
The shift from coal to biomass briquettes offers multiple advantages in terms of eco performance and production reliability. Briquettes burn more cleanly, producing less sulphur dioxide and particulate matter, which helps industries meet environmental regulations. Their standardised form enhances boiler efficiency, reducing equipment maintenance and improving energy output. Moreover, briquettes are eco-renewable and emission-balanced, as the carbon dioxide released during combustion is balanced naturally through vegetation cycles.
In contrast, traditional coal contributes heavily to greenhouse gas emissions, climate damage and ecological loss. Its production and supply chain are also destructive to land and wildlife. By replacing even a portion of industrial coal consumption with biomass briquettes, India can significantly cut its carbon footprint while encouraging domestic biomass industries.
Government Support and Biomass Sector Expansion in India
Government initiatives have been instrumental in developing India’s biomass energy base. Policies promoting sustainability and job creation have stimulated wider use of green fuels. The national renewable energy authorities has supported the development of bioenergy projects and briquette industries through grants and funding initiatives.
Additionally, carbon trading programs and RPO compliance rules have provided economic motivation for clean-fuel users. With the government’s focus on achieving net-zero emissions by 2070, biomass energy is set to become a cornerstone of India’s sustainable energy roadmap. The creation of online biofuel exchanges and transparent trade systems has further enhanced transparency and accessibility, enabling fair market participation.
Barriers and Issues in the Biomass Briquette Industry
Despite its promising growth, the biomass briquette sector faces several barriers. Seasonal variations in raw material supply can lead to variability in supply. The lack of standardisation in quality and calorific value also hampers market reliability. In some regions, supply chain inefficiencies increase the end-market expense, making coal a bio mass briquettes cheaper short-term alternative.
Furthermore, low awareness among industrial users remains a barrier to widespread adoption. Addressing these issues through enhanced production systems and policy support could help stabilise the market and ensure sustainable growth.
Advantages of Using Biomass Briquettes
The adoption of biomass briquettes provides both commercial and green advantages. For industries, switching to briquettes reduces fuel expenses, maintenance costs, and environmental compliance penalties. On a national scale, it enhances farmer earnings through residue monetisation. Environmentally, briquettes reduce deforestation, curb greenhouse gas emissions, and minimise waste burning.
As the market continues to mature, innovations in briquetting technology, moisture control, and waste utilisation are expected to make production more efficient and affordable. The establishment of decentralised briquette production units near agricultural zones can further reduce transportation costs and ensure year-round availability.
Conclusion
India’s biomass sector represents a critical opportunity for achieving sustainable energy goals while addressing rural economic development. The increasing demand for briquette coal and compressed bio briquettes reflects a shift toward renewable energy alternatives. Although the biomass briquette cost may fluctuate geographically and seasonally, the sustained advantages surpass temporary challenges. With continued investment, policy support, and innovation, biomass energy is set to become one of the key pillars of India’s renewable energy future.