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 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 price per kg of briquettes has become a key factor shaping industrial energy preferences, especially as industries seek cost-effective and eco-friendly alternatives to coal and other fossil fuels.
The increasing focus on renewable power has boosted the demand for briquette coal—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 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 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, pellets, biochar, and biogas, thereby providing renewable options over coal and oil.
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 bio mass briquettes as a sustainable and affordable option 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 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 industrial boilers and furnaces. 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 about 3500–5000 kcal per kilogram, depending on the feedstock type and compaction level.
Understanding the Cost of Briquettes per Kilogram in India
The cost of briquette fuel per kilogram in India is influenced by several key factors, 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 increased costs.
On average, the price of biomass briquettes varies from ?6 to ?10/kg, depending on calorific value and production efficiency. During peak agricultural seasons, when supply is abundant, prices tend to stabilise. However, in monsoon months or during high-demand industrial periods, prices may fluctuate upward from supply constraints. Despite these variations, briquettes remain cheaper than most fossil fuels, which can cost almost double per energy output.
Biomass Briquettes vs Conventional Coal
The substitution of coal with bio mass briquettes offers multiple gains 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 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 greatly reduce emissions while promoting localised fuel production.
Government Support and Biomass Sector Expansion in India
Government initiatives have significantly contributed in expanding the biomass sector. bio mass briquettes 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 simplified procurement and pricing, 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 hampers market reliability. In some regions, distance from raw material sources increase the end-market expense, making coal a temporary but less sustainable choice.
Furthermore, insufficient education on biomass advantages remains a key challenge for expansion. Addressing these issues through improved infrastructure, better quality control, and government-backed awareness campaigns could help stabilise the market and ensure sustainable growth.
Economic and Ecological Value of Biofuel Briquettes
The adoption of bio-coal fuel provides both economic and environmental gains. For industries, switching to briquettes reduces fuel expenses, maintenance costs, and environmental compliance penalties. On a macroeconomic level, 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 expands and develops, innovations in briquetting technology, moisture control, and waste utilisation 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 achieving sustainable energy goals while addressing rural economic development. 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 fluctuate geographically and seasonally, the overall gains exceed occasional cost changes. With continued investment, policy support, and innovation, biomass will play a defining role in India’s clean energy era.