Biomass & Briquette Market in India: Exploring Price Patterns and the Nation’s Increasing Move Toward Biofuel Solutions
The renewable energy domain in India is witnessing rapid evolution, with biomass emerging as a key contributor in the nation’s eco-friendly power strategy. The rising adoption of bio mass briquettes and other forms of eco energy has created a growing sector for producers and industrial buyers. In recent years, the briquettes price per kg 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 increasing focus on renewable power has accelerated the demand for briquette coal—a densified, eco-friendly fuel derived from agro-waste and forest residues. As India continues to pursue its renewable energy targets, biomass-based fuels are playing a crucial role in reducing carbon emissions and promoting decentralised energy generation, particularly for rural industries and small-scale manufacturing units.
What Biomass Means and How It Supports India’s Energy Goals
Biomass in India includes numerous organic sources available from agriculture, forestry, and organic waste streams. With over 500+ million tonnes of agro-residues available yearly, the country holds huge potential for biomass-based power and heat production. This resource can be converted into various forms of energy such as solid, liquid, and gaseous biofuels, 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 sustainable and affordable option for traditional fuels. In addition to lowering carbon footprints, the widespread use of biomass supports local livelihoods and adds value to farm by-products that would otherwise go to waste.
Production and Composition of Briquette Coal
Biocoal briquettes is produced by compressing dry organic matter such as agricultural and forestry waste into solid cylindrical or rectangular blocks. The process reduces moisture to increase energy content, making it suitable for industrial boilers and furnaces. 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 price of biomass briquettes per kg in India is influenced by several major determinants, including availability of residues and distance from production sites. In states with strong agro bases like Maharashtra, Punjab, and Haryana, the abundance of crop residues like rice husk and sugarcane bagasse keeps prices competitive. In contrast, urban and industrial areas where raw materials need to be transported from rural regions tend to experience increased costs.
On average, the price of biomass briquettes typically falls in the ?6–?10/kg range, depending on energy output and input cost. During harvest periods, when supply is abundant, prices tend to remain steady. 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 significantly more per unit of heat energy produced.
How Biomass Briquettes Differ from Traditional Coal
The replacement of coal by biomass fuel offers multiple gains in terms of environmental sustainability and operational efficiency. Briquettes emit fewer pollutants and toxic gases, which helps industries maintain green standards. Their uniform size ensures consistent combustion, reducing machine wear and boosting performance. Moreover, briquettes are derived from sustainable sources, as the carbon dioxide released during combustion is offset through photosynthesis.
In contrast, traditional coal contributes heavily to greenhouse gas emissions, and long-term air quality decline. Its extraction and transportation processes are also highly polluting and resource-draining. By replacing even a portion of coal demand through renewable substitutes, India can greatly reduce emissions while supporting rural fuel economies.
Policies and Growth Drivers for Biomass Energy in India
Government initiatives have been instrumental in advancing renewable biofuel markets. Policies promoting sustainability and job creation have motivated businesses to switch to bioenergy. The national renewable energy authorities has supported the development of biomass generation facilities through subsidies and financial assistance programs.
Additionally, carbon trading programs 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 recognised as an essential pillar 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 promising growth, the biomass briquette sector faces several challenges. Seasonal variations in raw material supply can lead to variability in supply. The inconsistent heating efficiency also reduces buyer confidence. 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 barrier to widespread adoption. Addressing these issues through enhanced production systems and policy support could help build resilience in the coming years.
Advantages of Using Biomass Briquettes
The adoption of bio mass briquettes provides both commercial and green advantages. For industries, using briquettes minimises expenses and regulatory risks. On a macroeconomic level, it bio mass briquettes enhances farmer earnings through residue monetisation. Environmentally, briquettes reduce deforestation, curb greenhouse gas emissions, and minimise waste burning.
As the market expands and develops, innovations in briquetting technology, moisture control, and waste utilisation are expected to make production smoother and cost-effective. The establishment of rural briquette hubs can further reduce transportation costs and ensure year-round availability.
Conclusion
India’s biomass sector represents a critical opportunity for meeting clean energy targets and supporting rural growth. The increasing demand for biomass fuel and bio mass briquettes reflects a country-wide movement toward sustainable energy use. Although the fuel briquette rate may vary across regions and seasons, the sustained advantages surpass temporary challenges. With consistent public and private sector engagement, India is on track to make biomass a cornerstone of its green energy future.