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 clean energy portfolio. The rising adoption of bio-fuel briquettes and other forms of renewable fuel has created a dynamic market for manufacturers, suppliers, and users alike. In recent years, the cost per kilogram of briquettes has become a key factor influencing industrial fuel choices, especially as industries seek affordable, sustainable substitutes to coal and other fossil fuels.
The increasing focus on renewable power has boosted 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 lowering pollution levels and promoting decentralised energy generation, particularly for village-based enterprises and small factories.
What Biomass Means and How It Supports India’s Energy Goals
India’s biomass resources comprises a wide array of natural residues available from farmlands, forests, and biodegradable waste. 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 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 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 monsoon months or during high-demand industrial periods, prices may fluctuate upward from supply constraints. Despite these variations, briquettes remain cheaper than most fossil fuels, which can cost almost double per energy output.
Comparing Biomass Briquettes and Traditional Coal
The substitution of coal with bio mass briquettes offers multiple gains in terms of clean energy transition and cost control. Briquettes burn more cleanly, producing less sulphur dioxide and particulate matter, which helps industries maintain green standards. Their even density promotes stable burning, reducing equipment maintenance and improving energy output. Moreover, briquettes are eco-renewable and emission-balanced, as the carbon dioxide released during combustion is reabsorbed by new plant growth.
In contrast, coal burning leads to higher carbon levels, 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 demand through renewable substitutes, India can significantly cut its carbon footprint while encouraging domestic biomass industries.
Biomass in India: Policy Support and Market Growth
Government initiatives have been instrumental in advancing renewable biofuel markets. Policies promoting renewable energy, carbon reduction, and rural employment 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 briquette coal 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.
Barriers and Issues in the Biomass Briquette Industry
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, logistical bottlenecks and transportation costs increase the end-market expense, making coal a more attractive in the short term.
Furthermore, insufficient education on biomass advantages remains a key challenge for expansion. Addressing these issues through upgraded logistics, standard guidelines, and public outreach could help stabilise the market and ensure sustainable growth.
Advantages of Using Biomass Briquettes
The adoption of bio mass briquettes provides both commercial and green advantages. For industries, transitioning to biomass lowers operational expenditure and emission costs. On a macroeconomic level, it enhances farmer earnings through residue monetisation. Environmentally, briquettes help combat climate change and improve air quality.
As the market continues to mature, innovations in processing efficiency and drying techniques are expected to make production more efficient and affordable. The establishment of small-scale plants close to farms can further reduce transportation costs and ensure year-round availability.
Summary
India’s biomass sector represents a critical opportunity for balancing sustainability with inclusive progress. The increasing demand for briquette coal and biomass briquette fuel 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, biomass will play a defining role in India’s clean energy era.