Biomass & Briquette Market in India: Exploring Price Patterns and the Nation’s Increasing Move Toward Biofuel Solutions
The renewable energy domain in India is witnessing rapid evolution, with biomass playing a significant role in the nation’s eco-friendly power strategy. The rising adoption of biomass briquettes and other forms of eco energy has created a dynamic market for producers, traders, and consumers alike. In recent years, the cost per kilogram of briquettes has become a significant factor shaping industrial energy preferences, especially as industries seek affordable, sustainable substitutes to coal and other fossil fuels.
The rising awareness of clean fuel usage has accelerated the demand for compressed biomass briquettes—a compressed, carbon-neutral energy source derived from agro-waste and forest residues. As India advances in achieving its renewable energy targets, biomass-based fuels are playing a pivotal role in cutting greenhouse gas output and promoting self-sufficiency in energy, particularly for rural industries and small-scale manufacturing units.
Defining Biomass and Its Importance in India’s Power Mix
India’s biomass resources comprises a wide array of natural residues available from crop residues and organic matter. 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 and pellets as well as bio-oil and biogas, thereby providing sustainable alternatives to coal and petroleum-based fuels.
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-coal briquettes as a green, low-cost substitute for traditional fuels. In addition to lowering carbon footprints, the widespread use of biomass creates rural job opportunities and adds value to farm by-products that would otherwise go to waste.
Production and Composition of Briquette Coal
Briquette coal is manufactured through high-pressure densification such as crop residues, wood shavings, and other biodegradable waste into dense fuel logs or blocks. The process reduces moisture to increase energy content, 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 feedstock, briquette coal can be divided into various types like biomass or carbonised blends. While standard briquettes rely fully on organic matter, bio coal briquettes often contain a small portion of charcoal to enhance calorific value. Their heating value typically ranges from 3,500–5,000 kcal/kg on average, depending on the feedstock type and compaction level.
Understanding the Cost of Briquettes per Kilogram in India
The briquettes price per kg in India is influenced by several core variables, including feedstock supply, logistics, and market trends. In agricultural states such as Maharashtra, Punjab, Haryana, and Uttar Pradesh, the abundance of crop residues like rice husk and sugarcane bagasse keeps manufacturing affordable. 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 typically falls in the ?6–?10/kg range, depending on calorific value and production efficiency. During times of biomass surplus, 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 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 shift from coal to biomass briquettes offers multiple benefits in terms of clean energy transition briquette coal and cost control. Briquettes burn more cleanly, producing less sulphur dioxide and particulate matter, which helps industries maintain green standards. Their standardised form enhances boiler efficiency, 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, climate damage and ecological loss. Its production and supply chain are also highly polluting and resource-draining. By replacing even a portion of industrial coal consumption with biomass briquettes, 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 MNRE and related departments has supported the development of biomass generation facilities through various incentive schemes.
Additionally, green energy credits and policy mandates have provided economic motivation for clean-fuel users. With the government’s focus on a carbon-neutral India by 2070, biomass energy is positioned as a key component of India’s green growth plan. The creation of organised marketplaces and digital trading platforms has further simplified procurement and pricing, enabling smoother trade operations.
Barriers and Issues in the Biomass Briquette Industry
Despite its promising growth, the biomass briquette sector faces several limitations. Fluctuating feedstock availability can lead to unstable output rates. The lack of standardisation in quality and calorific value also reduces buyer confidence. In some regions, logistical bottlenecks and transportation costs increase the end-market expense, making coal a temporary but less sustainable choice.
Furthermore, low awareness among industrial users remains a barrier to widespread adoption. Addressing these issues through upgraded logistics, standard guidelines, and public outreach could help build resilience in the coming years.
The Economic and Environmental Benefits of Bio Mass Briquettes
The adoption of bio mass briquettes provides both commercial and green advantages. For industries, switching to briquettes reduces fuel expenses, maintenance costs, and environmental compliance penalties. On a broader economic front, it enhances farmer earnings through residue monetisation. 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 cheaper and faster. The establishment of small-scale plants close to farms can further reduce transportation costs and ensure year-round availability.
Final Thoughts
The nation’s biomass industry stands as a key pillar for balancing sustainability with inclusive progress. 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 ongoing technological development and government backing, biomass energy is set to become one of the key pillars of India’s renewable energy future.