Biomass and Briquette Market in India: Analysing Price Trends and the Growing Shift Toward Biofuel Alternatives
The renewable energy domain in India is witnessing rapid evolution, with biomass playing a significant role in the nation’s sustainable energy mix. The rising adoption of biomass briquettes and other forms of bio-based fuel has created a growing sector for producers and industrial buyers. In recent years, the cost per kilogram of briquettes has become a significant factor shaping industrial energy preferences, especially as industries look for low-cost, environment-friendly options to coal and other fossil fuels.
The growing emphasis on cleaner energy has boosted the demand for biocoal briquettes—a sustainable solid fuel derived from agro-waste and forest residues. As India continues to pursue its renewable energy targets, bio-based energy sources are playing a pivotal role in cutting greenhouse gas output and promoting decentralised energy generation, particularly for rural production sectors.
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 biomass utilisation in power generation and thermal energy. This resource can be converted into multiple energy formats such as briquettes, pellets, biochar, and biogas, thereby providing renewable options over coal and oil.
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 mass briquettes as a green, low-cost substitute for traditional fuels. In addition to minimising pollution, the widespread use of biomass creates rural job opportunities and enhances the value of agricultural residues that would otherwise go to waste.
How Briquette Coal Is Made and Its Composition
Biocoal briquettes is created by compacting dry biomass such as agricultural and forestry waste into solid cylindrical or rectangular blocks. The process improves heat efficiency through drying, 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 feedstock, briquette coal can be categorised into biomass briquettes, bio coal, or mixed blends. While biomass briquettes are made purely from organic waste, hybrid 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 feedstock type and compaction level.
Analysing Briquettes Price per Kg in India
The cost of briquette fuel per kilogram in India is influenced by several key factors, including availability of residues and distance from production sites. In key biomass-producing regions such as Punjab and Maharashtra, the easy access to agro-waste keeps production costs relatively low. 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 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 remain steady. However, in off-seasons or when transport challenges arise, prices 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 generate minimal smoke and ash, which helps industries comply with emission norms. Their standardised form enhances boiler efficiency, reducing machine wear and boosting performance. 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 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 supporting rural fuel economies.
Government Support and Biomass Sector Expansion in India
Government initiatives have significantly contributed in advancing renewable biofuel markets. Policies promoting renewable energy, carbon reduction, and rural employment have encouraged industries to adopt biomass-based fuels. The national renewable energy authorities has supported the development of biomass generation facilities through subsidies and financial assistance programs.
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 long-term energy strategy. The creation of organised marketplaces and digital trading platforms has further enhanced transparency and accessibility, enabling fair market participation.
Challenges Facing the Biomass Briquette Market
Despite its rapid progress, the biomass briquette sector faces several challenges. Inconsistent residue supply across seasons can lead to inconsistent production levels. The inconsistent heating efficiency also reduces buyer confidence. In some regions, distance from raw briquettes price per kg material sources increase the final price for end-users, making coal a cheaper short-term alternative.
Furthermore, insufficient education on biomass advantages remains a key challenge for expansion. 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 macroeconomic level, it supports local economies by creating demand for agricultural residues and offering new income streams for farmers. Environmentally, briquettes limit forest depletion, lower carbon impact, and control air pollution.
As the market expands and develops, innovations in machinery design and feedstock management are expected to make production more efficient and affordable. The establishment of decentralised briquette production units near agricultural zones can further stabilise supply throughout the year.
Final Thoughts
India’s biomass sector represents a critical opportunity for balancing sustainability with inclusive progress. The increasing demand for briquette coal and compressed bio briquettes reflects a country-wide movement toward sustainable energy use. Although the biomass briquette cost may differ by area and timing, the sustained advantages surpass temporary challenges. With ongoing technological development and government backing, biomass energy is set to become one of the key pillars of India’s renewable energy future.