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 emerging as a key contributor in the nation’s clean energy portfolio. The rising adoption of biomass briquettes and other forms of renewable fuel has created a vibrant marketplace for manufacturers, suppliers, and users alike. In recent years, the price per kg of briquettes has become a significant factor shaping industrial energy preferences, especially as industries look for affordable, sustainable substitutes to coal and other fossil fuels.
The rising awareness of clean fuel usage has boosted the demand for briquette coal—a densified, eco-friendly fuel derived from agro-waste and forest residues. As India advances in achieving its renewable energy targets, renewable solid fuels are playing a crucial role in lowering pollution levels and promoting energy independence, particularly for village-based enterprises and small factories.
Understanding Biomass and Its Role in India’s Energy Sector
India’s biomass resources includes numerous organic sources available from agriculture, forestry, and organic waste streams. With over 500 million tonnes of agricultural residue generated annually, the country holds immense 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 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 mass briquettes as a sustainable and affordable option for traditional fuels. In addition to reducing emissions, the widespread use of biomass contributes to rural employment and utilises waste effectively that would otherwise go to waste.
How Briquette Coal Is Made and Its Composition
Biomass briquette fuel is manufactured through high-pressure densification such as crop residues, wood shavings, and other biodegradable waste into dense fuel logs or blocks. The process eliminates moisture and enhances the calorific value, making it suitable for high-demand industrial use. These briquettes are consistent in shape, portable, and produce very little ash, ensuring eco-friendly burning and less residue.
Depending on the feedstock, briquette coal can be categorised into biomass briquettes, bio coal, or mixed blends. While pure biomass briquettes use only non-carbonised residue, carbonised 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 organic mix and manufacturing process.
Understanding the Cost of Briquettes per Kilogram in India
The cost of briquette fuel per kilogram in India is influenced by several major determinants, including availability of residues and distance from production sites. In agricultural states such as Maharashtra, Punjab, Haryana, and Uttar Pradesh, the easy access to agro-waste keeps manufacturing affordable. In contrast, urban and industrial areas where raw materials need to be shipped over long distances tend to experience price escalation.
On average, the price of biomass briquettes ranges between ?6 and ?10 per kilogram, depending on energy output and input cost. During peak agricultural seasons, when supply is abundant, prices tend to be more affordable. However, in monsoon months or during high-demand industrial periods, prices may fluctuate upward from supply constraints. Despite these variations, briquettes remain an economical alternative to coal, which can cost much higher per thermal unit.
Comparing Biomass Briquettes and Traditional Coal
The replacement of coal by biomass fuel offers multiple benefits in terms of eco performance and production reliability. Briquettes burn more cleanly, producing less sulphur dioxide and particulate matter, which helps industries meet environmental regulations. Their even density promotes stable burning, reducing equipment maintenance and improving energy output. Moreover, briquettes are derived from sustainable sources, as the carbon dioxide released during combustion is balanced naturally through vegetation cycles.
In contrast, coal burning leads to higher carbon levels, air pollution, and environmental degradation. Its production and supply chain are also highly polluting and resource-draining. By replacing even a portion of coal usage in factories with bio-briquettes, India can greatly reduce emissions while encouraging domestic biomass industries.
Biomass in India: Policy Support and Market Growth
Government initiatives have significantly contributed in developing India’s biomass energy base. Policies promoting clean fuel adoption and emission reduction have stimulated wider use of green fuels. The national renewable energy authorities has supported the development of biomass generation facilities through subsidies and financial assistance programs.
Additionally, green energy credits and policy mandates have provided economic motivation for clean-fuel users. With the government’s focus on long-term decarbonisation goals, biomass energy is set to become a cornerstone of India’s green growth plan. The creation of online biofuel exchanges and transparent trade systems has further simplified procurement and pricing, enabling buyers and sellers to connect more efficiently.
Challenges Facing the Biomass Briquette Market
Despite its strong potential, the biomass briquette sector faces several challenges. Seasonal variations in raw material supply can lead to inconsistent production levels. The lack of standardisation in quality and calorific value also creates uncertainty for industrial users. In some regions, logistical bottlenecks and transportation costs increase the end-market expense, making coal a more attractive in the short term.
Furthermore, low awareness among industrial users remains a key challenge for expansion. 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-coal fuel provides both economic and environmental gains. For industries, switching to briquettes reduces fuel expenses, maintenance costs, and environmental compliance penalties. On briquette coal a broader economic front, it enhances farmer earnings through residue monetisation. Environmentally, briquettes limit forest depletion, lower carbon impact, and control air pollution.
As the market expands and develops, 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
India’s biomass sector represents a critical opportunity for balancing sustainability with inclusive progress. The increasing demand for briquette coal and bio mass briquettes reflects a nationwide transition toward cleaner and more affordable fuels. Although the fuel briquette rate may vary across regions and seasons, the sustained advantages surpass temporary challenges. With ongoing technological development and government backing, India is on track to make biomass a cornerstone of its green energy future.