Biomass and Briquette Market in India: Analysing Price Trends and the Growing Shift Toward Biofuel Alternatives
The renewable energy domain in India is witnessing rapid evolution, with biomass emerging as a key contributor in the nation’s eco-friendly power strategy. The rising adoption of bio mass briquettes and other forms of eco energy has created a vibrant marketplace for producers and industrial buyers. In recent years, the briquettes price per kg has become a significant factor affecting fuel procurement decisions, especially as industries look for low-cost, environment-friendly options to coal and other fossil fuels.
The rising awareness of clean fuel usage has driven the demand for compressed biomass briquettes—a sustainable solid 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 pivotal role in reducing carbon emissions 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 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 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 compressed shapes of uniform size. The process eliminates moisture and enhances the calorific value, making it suitable for high-demand industrial use. These briquettes are compact, easy to handle, and ensure clean combustion, 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 pure biomass briquettes use only non-carbonised residue, carbonised briquettes often contain a small portion of carbon matter for higher combustion efficiency. Their heating value typically ranges from 3500 to 5000 kcal/kg, depending on the composition and density of the material used.
Analysing Briquettes Price per Kg in India
The price of biomass briquettes per kg in India is influenced by several major determinants, 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, non-agricultural zones where raw materials need to be shipped over long distances tend to experience increased costs.
On average, the price of biomass briquettes varies from ?6 to ?10/kg, depending on energy output and input cost. During peak agricultural seasons, when supply is abundant, prices tend to stabilise. However, in off-seasons or when transport challenges arise, prices may fluctuate upward from supply constraints. Despite these variations, briquettes remain an economical alternative to coal, which can cost almost double per energy output.
Comparing Biomass Briquettes and Traditional Coal
The shift from coal to biomass briquettes offers multiple benefits 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 renewable and carbon-neutral, as the carbon dioxide released during combustion is balanced naturally through vegetation cycles.
In contrast, conventional coal fuels add to major pollution, 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 greatly reduce emissions 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 clean fuel adoption and emission reduction have motivated businesses to switch to bioenergy. The national renewable energy authorities has supported the development of biomass power plants and briquetting units through subsidies and financial assistance programs.
Additionally, carbon trading programs and RPO compliance rules have provided monetary benefits to eco-conscious industries. 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 organised marketplaces and digital trading platforms has further enhanced transparency and accessibility, enabling buyers and sellers to connect more efficiently.
Challenges Facing the Biomass Briquette Market
Despite its promising growth, 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 overall cost of delivery, making coal a cheaper short-term alternative.
Furthermore, low awareness among industrial users remains a major limitation. Addressing these issues through upgraded logistics, standard guidelines, and public outreach 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, switching briquettes price per kg to briquettes reduces fuel expenses, maintenance costs, and environmental compliance penalties. On a macroeconomic level, it 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 rural briquette hubs 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 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.