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 becoming a major pillar 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, traders, and consumers alike. In recent years, the briquettes price per kg has become a crucial factor affecting fuel procurement decisions, especially as industries pursue cost-effective and eco-friendly alternatives to coal and other fossil fuels.
The growing emphasis on cleaner energy has accelerated the demand for briquette coal—a compressed, carbon-neutral energy source derived from agro-waste and forest residues. As India advances in achieving its renewable energy targets, bio-based energy sources are playing a important role in reducing carbon emissions and promoting energy independence, particularly for rural industries and small-scale manufacturing units.
Understanding Biomass and Its Role in India’s Energy Sector
India’s biomass resources refers to the vast range of organic materials 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 solid, liquid, and gaseous biofuels, 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 green, low-cost substitute for traditional fuels. In addition to lowering carbon footprints, the widespread use of biomass supports local livelihoods and enhances the value of agricultural residues that would otherwise go to waste.
Production and Composition of Briquette Coal
Briquette coal is created by compacting dry biomass such as agricultural and forestry waste into solid cylindrical or rectangular blocks. The process reduces moisture to increase energy content, making it suitable for industrial boilers and furnaces. These briquettes are consistent in shape, portable, and produce very little ash, ensuring a more efficient and cleaner burn.
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, carbonised 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 organic mix and manufacturing process.
Understanding the Cost of Briquettes per Kilogram in India
The briquettes price per kg in India is influenced by several key factors, including feedstock supply, logistics, and market trends. In key biomass-producing regions such as Punjab and Maharashtra, the easy access to agro-waste keeps prices competitive. 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 off-seasons or when transport challenges arise, prices may rise due to limited feedstock availability and increased transportation costs. 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 gains in terms of environmental sustainability and operational efficiency. Briquettes generate minimal smoke and ash, which helps industries meet environmental regulations. Their uniform size ensures consistent combustion, reducing operational downtime. 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, air pollution, and environmental degradation. Its mining and logistics are also energy-intensive and harmful to ecosystems. By replacing even a portion of coal usage in factories with bio-briquettes, India can move closer to net-zero goals while encouraging domestic biomass industries.
Policies and Growth Drivers for Biomass Energy in India
Government initiatives have played a major role in developing India’s biomass energy base. Policies promoting sustainability and job creation have encouraged industries to adopt biomass-based fuels. The MNRE and related departments has supported the development of biomass generation facilities through various incentive schemes.
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 structured biomass markets has further simplified procurement and pricing, enabling fair market participation.
Challenges Facing the Biomass Briquette Market
Despite its rapid progress, the biomass briquette sector faces several limitations. Inconsistent residue supply across seasons can lead to variability in supply. The inconsistent heating efficiency also reduces buyer confidence. In some regions, supply chain inefficiencies increase the final price for end-users, making coal a cheaper short-term alternative.
Furthermore, limited awareness about the long-term economic and environmental benefits remains a major limitation. Addressing these issues through enhanced production systems and policy support could help strengthen sectoral confidence and expansion.
The Economic and Environmental Benefits of Bio Mass Briquettes
The adoption of bio-coal fuel provides both economic and environmental gains. For industries, transitioning to biomass lowers operational expenditure and emission costs. On a broader economic front, it biomass in india enhances farmer earnings through residue monetisation. Environmentally, briquettes limit forest depletion, lower carbon impact, and control air pollution.
As the market grows steadily, innovations in machinery design and feedstock management 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
The nation’s biomass industry stands as a key pillar for achieving sustainable energy goals while addressing rural economic development. The increasing demand for bio coal and biomass briquette fuel reflects a nationwide transition toward cleaner and more affordable fuels. Although the biomass briquette cost may fluctuate geographically and seasonally, the long-term benefits of using biomass as an energy source far outweigh short-term fluctuations. With ongoing technological development and government backing, biomass will play a defining role in India’s clean energy era.