Biomass & Briquette Market in India: Exploring Price Patterns and the Nation’s Increasing Move Toward Biofuel Solutions
India’s green energy sector is undergoing swift transformation, with biomass emerging as a key contributor in the nation’s sustainable energy mix. The rising adoption of bio-fuel briquettes and other forms of eco energy has created a dynamic market for producers and industrial buyers. In recent years, the cost per kilogram of briquettes has become a crucial factor shaping industrial energy preferences, especially as industries seek affordable, sustainable substitutes to coal and other fossil fuels.
The growing emphasis on cleaner energy has accelerated the demand for briquette coal—a densified, eco-friendly fuel derived from agricultural waste, sawdust, and other organic residues. As India continues to pursue its renewable energy targets, biomass-based fuels are playing a pivotal role in reducing carbon emissions and promoting energy independence, particularly for rural industries and small-scale manufacturing units.
Defining Biomass and Its Importance in India’s Power Mix
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 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 clean substitutes for conventional fossil fuels.
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 reducing emissions, the widespread use of biomass supports local livelihoods and utilises waste effectively that would otherwise go to waste.
Manufacturing and Material Structure of Briquette Coal
Biomass briquette fuel is created by compacting dry biomass such as farm residues, sawdust, and organic materials into solid cylindrical or rectangular blocks. The process eliminates moisture and enhances the calorific value, making it suitable for large-scale industrial applications. These briquettes are compact, easy to handle, and ensure clean combustion, ensuring a more efficient and cleaner burn.
Depending on the source material, briquette coal can be categorised into biomass briquettes, bio coal, or mixed blends. While biomass briquettes are made purely from organic waste, carbonised briquettes often contain a small portion of carbonised material to increase heat output. Their heating value typically ranges from 3,500–5,000 kcal/kg on average, depending on the composition and density of the material used.
Understanding the Cost of Briquettes per Kilogram in India
The cost of briquette fuel per kilogram in India is influenced by several key factors, including feedstock supply, logistics, and market trends. In agricultural states such as Maharashtra, Punjab, Haryana, and Uttar Pradesh, the ready supply of biomass feedstock keeps prices competitive. In contrast, non-agricultural zones where raw materials need to be shipped over long distances tend to experience price escalation.
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 stabilise. However, in monsoon months or during high-demand industrial periods, prices may rise due to limited feedstock availability and increased transportation costs. Despite these variations, briquettes remain a cost-effective fuel compared to traditional coal, which can cost significantly more per unit of heat energy produced.
Comparing Biomass Briquettes and Traditional Coal
The shift from coal to biomass briquettes offers multiple benefits 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 standardised form enhances boiler efficiency, reducing equipment maintenance and improving energy output. 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 industrial coal consumption with biomass briquettes, India can greatly reduce emissions while supporting rural fuel economies.
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 encouraged industries to adopt biomass-based fuels. The national renewable energy authorities 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 economic motivation for clean-fuel users. With the government’s focus on a carbon-neutral India by 2070, biomass energy is set to become a cornerstone of India’s long-term energy strategy. 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 strong potential, the biomass briquette sector faces several barriers. Fluctuating feedstock availability can lead to unstable output rates. The lack of standardisation in quality and calorific value also reduces buyer confidence. In some regions, supply chain inefficiencies increase the overall cost of delivery, making coal a cheaper briquettes price per kg short-term alternative.
Furthermore, low awareness among industrial users 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 biomass briquettes provides both commercial and green advantages. For industries, using briquettes minimises expenses and regulatory risks. On a macroeconomic level, it 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 machinery design and feedstock management 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.
Final Thoughts
India’s renewable fuel sector offers a major chance for meeting clean energy targets and supporting rural growth. The increasing demand for bio coal and compressed bio briquettes reflects a shift toward renewable energy alternatives. Although the fuel briquette rate may fluctuate geographically and seasonally, the overall gains exceed occasional cost changes. With consistent public and private sector engagement, biomass will play a defining role in India’s clean energy era.