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Biomass and Briquette Market in India: Analysing Price Trends and the Growing Shift Toward Biofuel Alternatives
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 cost per kilogram of briquettes has become a key factor influencing industrial fuel choices, 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 biocoal briquettes—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 refers to the vast range of organic materials available from farmlands, forests, and biodegradable waste. With over 500+ million tonnes of agro-residues available yearly, the country holds considerable potential for using biomass in industrial energy generation. This resource can be converted into various forms of energy such as briquettes, pellets, biochar, and biogas, thereby providing renewable options over coal and oil.
Continuous-heat industries gain from adopting biomass energy—such as cement plants, textile mills, and food factories. 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 supports local livelihoods and adds value to farm by-products that would otherwise go to waste.
Manufacturing and Material Structure of Briquette Coal
Biocoal briquettes is manufactured through high-pressure densification such as farm residues, sawdust, and organic materials 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 carbon matter for higher combustion efficiency. 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 price of biomass briquettes per kg in India is influenced by several key factors, including raw material availability, regional demand, transportation costs, and seasonal variations. In key biomass-producing regions such as Punjab and Maharashtra, the ready supply of biomass feedstock keeps production costs relatively low. In contrast, non-agricultural zones where raw materials need to be transported from rural regions tend to experience price escalation.
On average, the price of biomass briquettes ranges between ?6 and ?10 per kilogram, depending on energy output and input cost. During peak briquette coal 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.
Comparing Biomass Briquettes and Traditional 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 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 coal demand through renewable substitutes, India can significantly cut its carbon footprint while encouraging domestic biomass industries.
Biomass in India: Policy Support and Market Growth
Government initiatives have been instrumental in advancing renewable biofuel markets. Policies promoting renewable energy, carbon reduction, and rural employment have motivated businesses to switch to bioenergy. The national renewable energy authorities has supported the development of biomass power plants and briquetting units through subsidies and financial assistance programs.
Additionally, carbon trading programs and RPO compliance rules have provided monetary benefits to eco-conscious industries. With the government’s focus on long-term decarbonisation goals, biomass energy is positioned as a key component of India’s long-term energy strategy. The creation of organised marketplaces and digital trading platforms has further improved efficiency and reach, enabling smoother trade operations.
Barriers and Issues in the Biomass Briquette Industry
Despite its strong potential, the biomass briquette sector faces several limitations. Inconsistent residue supply across seasons can lead to variability in supply. The inconsistent heating efficiency also hampers market reliability. In some regions, distance from raw material sources increase the overall cost of delivery, making coal a temporary but less sustainable choice.
Furthermore, insufficient education on biomass advantages remains a barrier to widespread adoption. Addressing these issues through improved infrastructure, better quality control, and government-backed awareness campaigns could help build resilience in the coming years.
Economic and Ecological Value of Biofuel 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 stimulates rural economies and promotes waste utilisation. 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 decentralised briquette production units near agricultural zones 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 bio coal and compressed bio briquettes reflects a nationwide transition toward cleaner and more affordable fuels. Although the biomass briquette cost may differ by area and timing, the sustained advantages surpass temporary challenges. With consistent public and private sector engagement, biomass energy is set to become one of the key pillars of India’s renewable energy future.