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 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 key 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 agro-waste and forest residues. As India advances in achieving its renewable energy targets, renewable solid fuels are playing a crucial 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 refers to the vast range of organic materials 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, pellets, biochar, 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 bio-coal briquettes as a green, low-cost substitute 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.
Production and Composition of Briquette Coal
Briquette coal is manufactured through high-pressure densification such as farm residues, sawdust, and organic materials into compressed shapes of uniform size. The process reduces moisture to increase energy content, making it suitable for industrial boilers and furnaces. These briquettes are uniform in size, easy to transport, and generate minimal ash content, ensuring eco-friendly burning and less residue.
Depending on the raw input, briquette coal can be categorised into biomass briquettes, bio coal, or mixed blends. While standard briquettes rely fully on organic matter, hybrid 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 feedstock type and compaction level.
Briquette Price Trends Across India
The cost of briquette fuel per kilogram in India is influenced by several core variables, including raw material availability, regional demand, transportation costs, and seasonal variations. 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 higher pricing.
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 a cost-effective fuel compared to traditional coal, which can cost much higher per thermal unit.
How Biomass Briquettes Differ from Traditional Coal
The replacement of coal by biomass fuel offers multiple advantages in terms of environmental sustainability and operational efficiency. Briquettes emit fewer pollutants and toxic gases, which helps industries comply with emission norms. 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 destructive to land and wildlife. By replacing even a portion of industrial coal consumption with biomass 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 been instrumental in advancing renewable biofuel markets. Policies promoting renewable energy, carbon reduction, and rural employment 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 various incentive schemes.
Additionally, carbon credit mechanisms and renewable purchase obligations (RPOs) have provided financial incentives for companies using biomass fuels. With the government’s focus on achieving net-zero emissions by 2070, biomass energy is recognised as an essential pillar of India’s sustainable energy roadmap. The creation of structured biomass markets has further simplified procurement and pricing, enabling fair market participation.
Challenges Facing the Biomass Briquette Market
Despite its promising growth, 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, distance from raw material sources increase the end-market expense, making coal a cheaper short-term alternative.
Furthermore, low awareness among industrial users remains a key challenge for expansion. 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 commercial and green advantages. 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 limit forest depletion, lower carbon impact, and control air pollution.
As the market continues to briquette coal mature, innovations in processing efficiency and drying techniques are expected to make production cheaper and faster. The establishment of small-scale plants close to farms can further stabilise supply throughout the year.
Conclusion
India’s renewable fuel sector offers a major chance for meeting clean energy targets and supporting rural growth. The increasing demand for biomass fuel and bio mass 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.