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 becoming a major pillar in the nation’s sustainable energy mix. The rising adoption of biomass briquettes and other forms of bio-based fuel has created a growing sector for producers, traders, and consumers alike. In recent years, the price per kg of briquettes has become a crucial factor shaping industrial energy preferences, especially as industries pursue low-cost, environment-friendly options to coal and other fossil fuels.
The rising awareness of clean fuel usage has accelerated the demand for biocoal briquettes—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 important role in cutting greenhouse gas output and promoting self-sufficiency in energy, particularly for village-based enterprises and small factories.
Defining Biomass and Its Importance in India’s Power Mix
India’s biomass resources comprises a wide array of natural residues available from agriculture, forestry, and organic waste streams. With over 500 million tonnes of agricultural residue generated annually, the country holds considerable potential for using biomass in industrial energy generation. 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.
Biomass energy is particularly beneficial for industries that rely on continuous heat generation—such as manufacturing, textile, and agro-processing sectors. These sectors have increasingly turned to biomass briquettes as a clean-burning, cost-efficient replacement for traditional fuels. In addition to minimising pollution, 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 created by compacting dry biomass such as agricultural and forestry waste into solid cylindrical or rectangular blocks. The process improves heat efficiency through drying, making it suitable for large-scale industrial applications. These briquettes are consistent in shape, portable, and produce very little ash, ensuring a more efficient and cleaner burn.
Depending on the source material, briquette coal can be classified as biomass, biocoal, or hybrid briquettes. 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 about 3500–5000 kcal per kilogram, depending on the organic mix and manufacturing process.
Understanding the Cost of Briquettes per Kilogram in India
The briquettes price per kg in India is influenced by several key factors, including feedstock supply, logistics, and market trends. In states with strong agro bases like Maharashtra, Punjab, and Haryana, the ready supply of biomass feedstock keeps manufacturing affordable. In contrast, cities and industrial belts where raw materials need to be brought from distant rural areas tend to experience increased costs.
On average, the price of biomass briquettes ranges between ?6 and ?10 per kilogram, depending on calorific value and production efficiency. During peak agricultural seasons, when supply is abundant, prices tend to be more affordable. However, in off-seasons or when transport challenges arise, prices may increase because of shortages and logistical delays. Despite these variations, briquettes remain an economical alternative to coal, which can cost significantly more per unit of heat energy produced.
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 eco-renewable and emission-balanced, 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 mining and logistics 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 promoting localised fuel production.
Policies and Growth Drivers for Biomass Energy in India
Government initiatives have played a major role in developing India’s biomass energy base. Policies promoting sustainability and job creation have encouraged industries to adopt biomass-based fuels. The MNRE and related departments briquette coal has supported the development of biomass generation facilities through various incentive schemes.
Additionally, carbon credit mechanisms and renewable purchase obligations (RPOs) have provided economic motivation for clean-fuel users. With the government’s focus on a carbon-neutral India by 2070, biomass energy is set to become a cornerstone of India’s green growth plan. The creation of structured biomass markets has further simplified procurement and pricing, enabling fair market participation.
Challenges Facing the Biomass Briquette Market
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 cheaper short-term alternative.
Furthermore, limited awareness about the long-term economic and environmental benefits remains a major limitation. Addressing these issues through enhanced production systems and policy support 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, transitioning to biomass lowers operational expenditure and emission costs. 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 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.
Conclusion
India’s renewable fuel sector offers a major chance for achieving sustainable energy goals while addressing rural economic development. 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 consistent public and private sector engagement, biomass energy is set to become one of the key pillars of India’s renewable energy future.