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 playing a significant role 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 cost-effective and eco-friendly alternatives to coal and other fossil fuels.
The growing emphasis on cleaner energy has accelerated the demand for briquette coal—a compressed, carbon-neutral energy source derived from farm residues, wood dust, and biodegradable materials. As India advances in achieving its renewable energy targets, renewable solid fuels are playing a important role in lowering pollution levels and promoting decentralised energy generation, particularly for rural production sectors.
What Biomass Means and How It Supports India’s Energy Goals
Biomass potential in India includes numerous organic sources available from farmlands, forests, and biodegradable waste. With over half a billion tonnes of crop waste produced each year, the country holds immense potential for biomass utilisation in power generation and thermal energy. This resource can be converted into different usable fuels such as solid, liquid, and gaseous biofuels, thereby providing clean substitutes for conventional fossil fuels.
Industries needing consistent thermal output benefit greatly from biomass fuel—such as cement, textile, and food processing units. These sectors have increasingly turned to bio-coal briquettes as a green, low-cost substitute for traditional fuels. In addition to minimising pollution, the widespread use of biomass creates rural job opportunities and enhances the value of agricultural residues that would otherwise go to waste.
How Briquette Coal Is Made and Its Composition
Briquette coal is created by compacting dry biomass such as crop residues, wood shavings, and other biodegradable waste into dense fuel logs or blocks. The process improves heat efficiency through drying, making it suitable for large-scale industrial applications. These briquettes are compact, easy to handle, and ensure clean combustion, ensuring cleaner combustion compared to traditional coal.
Depending on the source material, briquette coal can be divided into various types like biomass or carbonised blends. While biomass briquettes are made purely from organic waste, bio coal 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.
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 brought from distant rural areas 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 be more affordable. 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, traditional coal contributes heavily to greenhouse gas emissions, air pollution, and environmental degradation. Its mining and logistics are also highly polluting and resource-draining. By replacing even a portion of coal usage in factories with bio-briquettes, India can significantly cut its carbon footprint while promoting localised fuel production.
Biomass in India: Policy Support and Market Growth
Government initiatives have been instrumental in developing India’s biomass energy base. 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 bioenergy projects and briquette industries through grants and funding initiatives.
Additionally, green energy credits and policy mandates have provided monetary benefits to eco-conscious industries. 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 online biofuel exchanges and transparent trade systems has further simplified procurement and pricing, enabling buyers and sellers to connect more efficiently.
Obstacles Affecting India’s Biomass Briquette Sector
Despite its strong potential, the biomass briquette sector faces several barriers. Fluctuating feedstock availability can lead to inconsistent production levels. The lack of standardisation in quality and calorific value also hampers market reliability. In some regions, distance from raw material sources increase the end-market expense, making coal a temporary but less sustainable choice.
Furthermore, insufficient education on biomass advantages remains a barrier to widespread adoption. Addressing these issues through improved infrastructure, better quality control, and government-backed awareness campaigns could help stabilise the market and ensure sustainable growth.
Economic and Ecological Value of Biofuel Briquettes
The adoption of biomass briquettes provides both financial and ecological benefits. For industries, switching to briquettes reduces fuel expenses, maintenance costs, and environmental compliance penalties. On a broader economic front, it stimulates rural economies and promotes waste utilisation. Environmentally, briquettes reduce deforestation, curb greenhouse gas emissions, and minimise waste burning.
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
India’s renewable fuel sector offers a major chance for achieving sustainable energy goals while addressing rural economic briquette coal development. The increasing demand for bio coal and compressed bio briquettes reflects a country-wide movement toward sustainable energy use. Although the fuel briquette rate 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.