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 eco energy has created a growing sector for producers, traders, and consumers alike. In recent years, the price per kg of briquettes has become a crucial factor affecting fuel procurement decisions, especially as industries look for low-cost, environment-friendly options to coal and other fossil fuels.
The growing emphasis on cleaner energy has driven the demand for compressed biomass briquettes—a compressed, carbon-neutral energy source derived from farm residues, wood dust, and biodegradable materials. As India works toward its renewable energy targets, bio-based energy sources are playing a crucial role in cutting greenhouse gas output and promoting energy independence, particularly for rural industries and small-scale manufacturing units.
Defining Biomass and Its Importance in India’s Power Mix
Biomass in India refers to the vast range of organic materials available from agriculture, forestry, and organic waste streams. With over 500+ million tonnes of agro-residues available yearly, the country holds huge potential for biomass-based power and heat production. This resource can be converted into multiple energy formats 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 dense fuel logs or blocks. The process reduces moisture to increase energy content, 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 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 carbonised material to increase heat output. Their heating value typically ranges from about 3500–5000 kcal per kilogram, depending on the feedstock type and compaction level.
Understanding the Cost of Briquettes per Kilogram in India
The cost of briquette fuel per kilogram in India is influenced by several core variables, including raw material availability, regional demand, transportation costs, and seasonal variations. In states with strong agro bases like Maharashtra, Punjab, and Haryana, the ready supply of biomass feedstock keeps manufacturing affordable. In contrast, urban and industrial areas where raw materials need to be transported from rural regions tend to experience higher pricing.
On average, the price of biomass briquettes ranges between ?6 and ?10 per kilogram, depending on heat value and quality control. During harvest periods, when supply is abundant, prices tend to be more affordable. However, in rainy seasons or energy-demand surges, 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 significantly more per unit of heat energy produced.
How Biomass Briquettes Differ from Traditional Coal
The replacement of coal by biomass fuel offers multiple advantages 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 machine wear and boosting performance. Moreover, briquettes are renewable and carbon-neutral, as the carbon dioxide released briquette coal during combustion is balanced naturally through vegetation cycles.
In contrast, conventional coal fuels add to major pollution, and long-term air quality decline. Its mining and logistics are also destructive to land and wildlife. By replacing even a portion of coal usage in factories with bio-briquettes, India can move closer to net-zero goals while promoting localised fuel production.
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 bioenergy projects and briquette industries through grants and funding initiatives.
Additionally, green energy credits and policy mandates have provided financial incentives for companies using biomass fuels. With the government’s focus on long-term decarbonisation goals, biomass energy is positioned as a key component of India’s sustainable energy roadmap. 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 hampers market reliability. In some regions, supply chain inefficiencies increase the overall cost of delivery, making coal a temporary but less sustainable choice.
Furthermore, limited awareness about the long-term economic and environmental benefits 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
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 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.