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 eco-friendly power strategy. The rising adoption of bio-fuel briquettes and other forms of bio-based fuel has created a growing sector for producers, traders, and consumers alike. In recent years, the briquettes price per kg has become a crucial factor shaping industrial energy preferences, especially as industries look for affordable, sustainable substitutes to coal and other fossil fuels.
The growing emphasis on cleaner energy has accelerated the demand for briquette coal—a sustainable solid fuel derived from agro-waste and forest residues. As India advances in achieving its renewable energy targets, bio-based energy sources are playing a important role in cutting greenhouse gas output and promoting decentralised energy generation, particularly for village-based enterprises and small factories.
Defining Biomass and Its Importance in India’s Power Mix
Biomass potential in India refers to the vast range of organic materials available from crop residues and organic matter. With over 500 million tonnes of agricultural residue generated annually, the country holds considerable potential for biomass utilisation in power generation and thermal energy. This resource can be converted into multiple energy formats such as solid, liquid, and gaseous biofuels, thereby providing renewable options over coal and oil.
Biomass energy is particularly beneficial for industries that rely on continuous heat generation—such as cement, textile, and food processing units. 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 contributes to rural employment and utilises waste effectively that would otherwise go to waste.
Production and Composition of Briquette Coal
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 pure biomass briquettes use only non-carbonised residue, hybrid briquettes often contain a small portion of charcoal to enhance calorific value. Their heating value typically ranges from 3500 to 5000 kcal/kg, depending on the feedstock type and compaction level.
Understanding the Cost of Briquettes per Kilogram in India
The briquettes price per kg in India is influenced by several major determinants, including raw material availability, regional demand, transportation costs, and seasonal variations. In agricultural states such as Maharashtra, Punjab, Haryana, and Uttar Pradesh, the easy access to agro-waste keeps production costs relatively low. In contrast, cities and industrial belts where raw materials need to be brought from distant rural areas tend to experience price escalation.
On average, the price of biomass briquettes typically falls in the ?6–?10/kg range, depending on heat value and quality control. During times of biomass surplus, when supply is abundant, prices tend to remain steady. However, in rainy seasons or energy-demand surges, 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.
How Biomass Briquettes Differ from Traditional Coal
The shift from coal to biomass briquettes offers multiple gains in terms of eco performance and production reliability. Briquettes emit fewer pollutants and toxic gases, which helps industries comply with emission norms. Their standardised form enhances boiler efficiency, reducing operational downtime. Moreover, briquettes are eco-renewable and emission-balanced, as the carbon dioxide released during combustion is offset through photosynthesis.
In contrast, traditional coal contributes heavily to greenhouse gas emissions, climate damage and ecological loss. Its extraction and transportation processes 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 supporting rural fuel economies.
Biomass in India: Policy Support and Market Growth
Government initiatives have been instrumental in expanding the biomass sector. Policies promoting clean fuel adoption and emission reduction 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 credit mechanisms and renewable purchase obligations (RPOs) have provided financial incentives for briquette coal companies using biomass fuels. With the government’s focus on a carbon-neutral India by 2070, biomass energy is set to become a cornerstone of India’s sustainable energy roadmap. The creation of online biofuel exchanges and transparent trade systems has further enhanced transparency and accessibility, enabling fair market participation.
Obstacles Affecting India’s Biomass Briquette Sector
Despite its rapid progress, the biomass briquette sector faces several barriers. Fluctuating feedstock availability can lead to unstable output rates. The inconsistent heating efficiency also reduces buyer confidence. In some regions, logistical bottlenecks and transportation costs increase the overall cost of delivery, making coal a more attractive in the short term.
Furthermore, limited awareness about the long-term economic and environmental benefits remains a key challenge for expansion. Addressing these issues through improved infrastructure, better quality control, and government-backed awareness campaigns could help strengthen sectoral confidence and expansion.
Economic and Ecological Value of Biofuel Briquettes
The adoption of bio mass briquettes provides both economic and environmental gains. For industries, transitioning to biomass lowers operational expenditure and emission costs. 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 continues to mature, innovations in processing efficiency and drying techniques are expected to make production smoother and cost-effective. The establishment of small-scale plants close to farms can further stabilise supply throughout the year.
Final Thoughts
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 nationwide transition toward cleaner and more affordable fuels. Although the fuel briquette rate may vary across regions and seasons, the long-term benefits of using biomass as an energy source far outweigh short-term fluctuations. With ongoing technological development and government backing, India is on track to make biomass a cornerstone of its green energy future.