Biomass & Briquette Market in India: Exploring Price Patterns and the Nation’s Increasing Move Toward Biofuel Solutions
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 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 densified, eco-friendly 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 reducing carbon emissions and promoting decentralised energy generation, particularly for rural industries and small-scale manufacturing units.
Understanding Biomass and Its Role in India’s Energy Sector
Biomass in India refers to the vast range of organic materials 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, pellets, biochar, and biogas, thereby providing renewable options over coal and oil.
Continuous-heat industries gain from adopting biomass energy—such as manufacturing, textile, and agro-processing sectors. These sectors have increasingly turned to bio mass briquettes as a sustainable and affordable option for traditional fuels. In addition to reducing emissions, the widespread use of biomass supports local livelihoods and adds value to farm by-products that would otherwise go to waste.
Production and Composition 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 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 3500 to 5000 kcal/kg, depending on the feedstock type and compaction level.
Briquette Price Trends Across India
The cost of briquette fuel per kilogram in India is influenced by several core variables, including availability of residues and distance from production sites. In agricultural states such as Maharashtra, Punjab, Haryana, and Uttar Pradesh, the abundance of crop residues like rice husk and sugarcane bagasse keeps production costs relatively low. 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 typically falls in the ?6–?10/kg range, depending on heat value and quality control. During harvest periods, when supply is abundant, prices tend to remain steady. 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 eco performance and production reliability. Briquettes generate minimal smoke and ash, which helps industries comply with emission norms. Their standardised form enhances boiler efficiency, reducing machine wear and boosting performance. Moreover, briquettes are renewable and carbon-neutral, as the carbon dioxide released during combustion is balanced naturally through vegetation cycles.
In contrast, traditional coal contributes heavily to greenhouse gas emissions, and long-term air quality decline. Its extraction and transportation processes are also destructive to land and wildlife. By replacing even a portion of industrial coal consumption with biomass briquettes, India can move closer to net-zero goals while promoting localised fuel production.
Government Support and Biomass Sector Expansion in India
Government initiatives have significantly contributed in expanding the biomass sector. Policies promoting sustainability and job creation have stimulated wider use of green fuels. The Ministry of New and Renewable Energy (MNRE) has supported the development of bioenergy projects and briquette industries through various incentive schemes.
Additionally, carbon credit mechanisms and renewable purchase obligations (RPOs) have provided financial incentives for companies using biomass fuels. With the government’s focus on a carbon-neutral India by 2070, biomass energy is recognised as an essential pillar of India’s sustainable energy roadmap. The creation of structured biomass markets has further simplified procurement and pricing, enabling fair market participation.
Obstacles Affecting India’s Biomass Briquette Sector
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 briquettes price per kg remains a barrier to widespread adoption. Addressing these issues through enhanced production systems and policy support could help build resilience in the coming years.
Advantages of Using Biomass Briquettes
The adoption of bio mass briquettes provides both commercial and green advantages. For industries, using briquettes minimises expenses and regulatory risks. 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 cheaper and faster. The establishment of small-scale plants close to farms can further cut logistic expenses and improve accessibility.
Summary
India’s biomass sector represents a critical opportunity for balancing sustainability with inclusive progress. The increasing demand for briquette coal and biomass briquette fuel reflects a shift toward renewable energy alternatives. Although the briquettes price per kg may fluctuate geographically and seasonally, the overall gains exceed occasional cost changes. With continued investment, policy support, and innovation, India is on track to make biomass a cornerstone of its green energy future.