Biomass and Briquette Market in India: Analysing Price Trends and the Growing Shift Toward Biofuel Alternatives
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 vibrant marketplace 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 affordable, sustainable substitutes to coal and other fossil fuels.
The increasing focus on renewable power has boosted the demand for biocoal briquettes—a sustainable solid 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 important role in lowering pollution levels and promoting decentralised energy generation, particularly for village-based enterprises and small factories.
What Biomass Means and How It Supports India’s Energy Goals
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 immense potential for biomass utilisation in power generation and thermal energy. This resource can be converted into different usable fuels such as briquettes and pellets as well as bio-oil and biogas, thereby providing clean substitutes for conventional fossil fuels.
Industries needing consistent thermal output benefit greatly from biomass fuel—such as cement, textile, and food processing units. These sectors have increasingly turned to bio-coal 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.
Production and Composition of Briquette Coal
Biomass briquette fuel is manufactured through high-pressure densification such as farm residues, sawdust, and organic materials into dense fuel logs or 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 a more efficient and cleaner burn.
Depending on the source material, briquette coal can be classified as biomass, biocoal, or hybrid briquettes. While standard briquettes rely fully on organic matter, bio coal 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 composition and density of the material used.
Understanding the Cost of Briquettes per Kilogram in India
The briquettes price per kg 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 easy access to agro-waste keeps manufacturing affordable. In contrast, non-agricultural zones where raw materials need to be brought from distant rural areas tend to experience higher pricing.
On average, the price of biomass briquettes typically falls in the ?6–?10/kg range, depending on heat value and quality control. During peak agricultural seasons, when supply is abundant, prices tend to remain steady. However, in rainy seasons or energy-demand surges, prices may fluctuate upward from supply constraints. Despite these variations, briquettes remain cheaper than most fossil fuels, which can cost much higher per thermal unit.
Comparing Biomass Briquettes and Traditional Coal
The substitution of coal with bio mass briquettes offers multiple gains in terms of eco performance and production reliability. Briquettes burn more cleanly, producing less sulphur dioxide and briquette coal 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 reabsorbed by new plant growth.
In contrast, traditional coal contributes heavily to greenhouse gas emissions, climate damage and ecological loss. Its mining and logistics are also highly polluting and resource-draining. By replacing even a portion of coal demand through renewable substitutes, India can greatly reduce emissions while encouraging domestic biomass industries.
Policies and Growth Drivers for Biomass Energy in India
Government initiatives have been instrumental in expanding the biomass sector. Policies promoting sustainability and job creation have encouraged industries to adopt biomass-based fuels. The national renewable energy authorities has supported the development of biomass power plants and briquetting units through grants and funding initiatives.
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 set to become a cornerstone of India’s green growth plan. The creation of organised marketplaces and digital trading platforms has further improved efficiency and reach, enabling fair market participation.
Challenges Facing the Biomass Briquette Market
Despite its strong potential, the biomass briquette sector faces several barriers. 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 end-market expense, making coal a more attractive in the short term.
Furthermore, low awareness among industrial users remains a major limitation. Addressing these issues through enhanced production systems and policy support could help strengthen sectoral confidence and expansion.
Advantages of Using Biomass Briquettes
The adoption of bio mass briquettes provides both commercial and green advantages. For industries, transitioning to biomass lowers operational expenditure and emission costs. On a national scale, it supports local economies by creating demand for agricultural residues and offering new income streams for farmers. Environmentally, briquettes help combat climate change and improve air quality.
As the market continues to mature, innovations in processing efficiency and drying techniques are expected to make production more efficient and affordable. The establishment of rural briquette hubs can further stabilise supply throughout the year.
Conclusion
The nation’s biomass industry stands as a key pillar for balancing sustainability with inclusive progress. The increasing demand for biomass fuel and compressed bio briquettes reflects a nationwide transition toward cleaner and more affordable fuels. Although the briquettes price per kg may vary across regions and seasons, the sustained advantages surpass temporary challenges. With ongoing technological development and government backing, biomass will play a defining role in India’s clean energy era.