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 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 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 pivotal role in reducing carbon emissions and promoting decentralised energy generation, 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 500 million tonnes of agricultural residue generated annually, the country holds considerable potential for biomass utilisation in power generation and thermal energy. This resource can be converted into various forms of energy such as briquettes and pellets as well as bio-oil and biogas, thereby providing renewable options over coal and oil.
Continuous-heat industries gain from adopting biomass energy—such as manufacturing, textile, and agro-processing sectors. These sectors have increasingly turned to biomass briquettes as a clean-burning, cost-efficient replacement for traditional fuels. In addition to lowering carbon footprints, the widespread use of biomass supports local livelihoods and adds value to farm by-products that would otherwise go to waste.
How Briquette Coal Is Made and Its Composition
Biomass briquette fuel is manufactured through high-pressure densification such as crop residues, wood shavings, and other biodegradable 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 cleaner combustion compared to traditional coal.
Depending on the source material, briquette coal can be classified as biomass, biocoal, or hybrid briquettes. While biomass briquettes are made purely from organic waste, hybrid 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 price of biomass briquettes per kg in India is influenced by several major determinants, including feedstock supply, logistics, and market trends. In agricultural states such as Maharashtra, Punjab, Haryana, and Uttar Pradesh, the abundance of crop residues like rice husk and sugarcane bagasse keeps production costs relatively low. In contrast, urban and industrial areas where raw materials need to be transported from rural regions 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 replacement of coal by biomass fuel offers multiple advantages in terms of eco performance and production reliability. Briquettes emit fewer pollutants and toxic gases, which helps industries meet environmental regulations. Their uniform size ensures consistent combustion, reducing operational downtime. Moreover, briquettes are renewable and carbon-neutral, as the carbon dioxide released during combustion is offset through photosynthesis.
In contrast, coal burning leads to higher carbon levels, air pollution, and environmental degradation. Its production and supply chain are also destructive to land and wildlife. By replacing even a portion of coal demand through renewable substitutes, India can significantly cut its carbon footprint while promoting localised fuel production.
Government Support and Biomass Sector Expansion in India
Government initiatives have played a major role in advancing renewable biofuel markets. Policies promoting clean fuel adoption and emission reduction have encouraged industries to adopt biomass-based fuels. The Ministry of New and Renewable Energy (MNRE) has supported the development of biomass generation facilities through grants and funding initiatives.
Additionally, green energy credits and policy mandates have provided economic motivation for clean-fuel users. With the government’s focus on achieving net-zero emissions by 2070, biomass energy is recognised as an essential pillar of India’s green growth plan. The creation of online biofuel exchanges and transparent trade systems has further simplified procurement and pricing, enabling smoother trade operations.
Challenges Facing the Biomass Briquette Market
Despite its strong potential, the biomass briquette sector faces several barriers. Fluctuating feedstock availability can lead to unstable output rates. The lack of standardisation in quality and calorific value also hampers market reliability. In some regions, distance from raw material sources increase the overall cost of delivery, making coal a cheaper short-term alternative.
Furthermore, low awareness among industrial users remains a key challenge for expansion. Addressing these issues through improved infrastructure, better quality control, and government-backed awareness campaigns could help build resilience in the coming years.
Advantages of Using Biomass Briquettes
The adoption of bio-coal fuel provides both financial and ecological benefits. For industries, switching to briquettes reduces fuel expenses, maintenance costs, and environmental compliance penalties. On a broader economic front, it stimulates rural economies and promotes waste utilisation. Environmentally, briquettes help combat climate change and improve air quality.
As the market continues to mature, innovations in machinery design and feedstock management are expected to make production cheaper and faster. The establishment of rural briquette hubs can further stabilise supply throughout the year.
Final Thoughts
India’s renewable fuel sector offers a major chance for balancing sustainability with inclusive progress. The increasing demand for bio coal and compressed bio briquettes reflects a country-wide movement toward sustainable energy biomass in india use. Although the biomass briquette cost may vary across regions and seasons, the overall gains exceed occasional cost changes. With consistent public and private sector engagement, biomass will play a defining role in India’s clean energy era.