Biomass and Briquette Market in India: Analysing Price Trends and the Growing Shift Toward Biofuel Alternatives
India’s renewable energy landscape is rapidly evolving, 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 dynamic market for producers and industrial buyers. In recent years, the briquettes price per kg has become a significant factor influencing industrial fuel choices, especially as industries seek affordable, sustainable substitutes to coal and other fossil fuels.
The rising awareness of clean fuel usage has driven 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, renewable solid fuels are playing a important role in cutting greenhouse gas output and promoting decentralised energy generation, particularly for rural production sectors.
Understanding Biomass and Its Role in India’s Energy Sector
Biomass potential in India includes numerous organic sources available from crop residues and organic matter. With over half a billion tonnes of crop waste produced each year, the country holds considerable potential for biomass-based power and heat production. This resource can be converted into different usable fuels such as briquettes and pellets as well as bio-oil and biogas, thereby providing renewable options over coal and oil.
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 biomass briquettes as a green, low-cost substitute for traditional fuels. In addition to minimising pollution, the widespread use of biomass supports local livelihoods and utilises waste effectively that would otherwise go to waste.
Production and Composition of Briquette Coal
Biomass briquette fuel is manufactured through high-pressure densification such as farm residues, sawdust, and organic materials into dense fuel logs or blocks. The process improves heat efficiency through drying, making it suitable for large-scale industrial applications. These briquettes are uniform in size, easy to transport, and generate minimal ash content, ensuring cleaner combustion compared to traditional coal.
Depending on the raw input, briquette coal can be classified as biomass, biocoal, or hybrid briquettes. While biomass briquettes are made purely from organic waste, carbonised briquettes often contain a small portion of charcoal to enhance calorific value. Their heating value typically ranges from about 3500–5000 kcal per kilogram, depending on the organic mix and manufacturing process.
Briquette Price Trends Across India
The price of biomass briquettes per kg in India is influenced by several core variables, including feedstock supply, logistics, and market trends. In states with strong agro bases like Maharashtra, Punjab, and Haryana, the easy access to agro-waste keeps production costs relatively low. In contrast, non-agricultural zones where raw materials need to be shipped over long distances tend to experience higher pricing.
On average, the price of biomass briquettes varies from ?6 to ?10/kg, depending on energy output and input cost. During harvest periods, when supply is abundant, prices tend to stabilise. However, in off-seasons or when transport challenges arise, prices may rise due to limited feedstock availability and increased transportation costs. Despite these variations, briquettes remain cheaper than most fossil fuels, which can cost much higher per thermal unit.
Comparing Biomass Briquettes and Traditional Coal
The substitution of coal with bio mass briquettes offers multiple gains in terms of environmental sustainability and operational efficiency. Briquettes burn more cleanly, producing less sulphur dioxide and particulate matter, which helps industries maintain green standards. Their even density promotes stable burning, reducing machine wear briquettes price per kg 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, conventional coal fuels add to major pollution, air pollution, and environmental degradation. Its production and supply chain are also energy-intensive and harmful to ecosystems. By replacing even a portion of coal usage in factories with bio-briquettes, India can move closer to net-zero goals while encouraging domestic biomass industries.
Policies and Growth Drivers for Biomass Energy in India
Government initiatives have been instrumental in expanding the biomass sector. Policies promoting clean fuel adoption and emission reduction have stimulated wider use of green fuels. The Ministry of New and Renewable Energy (MNRE) 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 economic motivation for clean-fuel users. With the government’s focus on achieving net-zero emissions by 2070, biomass energy is positioned as a key component of India’s green growth plan. The creation of structured biomass markets has further simplified procurement and pricing, enabling smoother trade operations.
Challenges Facing the Biomass Briquette Market
Despite its rapid progress, the biomass briquette sector faces several barriers. Seasonal variations in raw material supply can lead to unstable output rates. The lack of standardisation in quality and calorific value also creates uncertainty for industrial users. In some regions, distance from raw material sources increase the final price for end-users, making coal a cheaper short-term alternative.
Furthermore, low awareness among industrial users remains a major limitation. Addressing these issues through enhanced production systems and policy support could help stabilise the market and ensure sustainable growth.
Economic and Ecological Value of Biofuel Briquettes
The adoption of bio-coal fuel provides both economic and environmental gains. For industries, transitioning to biomass lowers operational expenditure and emission costs. 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 continues to mature, innovations in machinery design and feedstock management are expected to make production more efficient and affordable. The establishment of rural briquette hubs can further stabilise supply throughout the year.
Summary
India’s biomass sector represents a critical opportunity for achieving sustainable energy goals while addressing rural economic development. The increasing demand for biomass fuel and biomass briquette fuel reflects a country-wide movement toward sustainable energy use. Although the biomass briquette cost may vary across regions and seasons, the sustained advantages surpass temporary challenges. With consistent public and private sector engagement, biomass will play a defining role in India’s clean energy era.