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 eco energy has created a growing sector for producers, traders, and consumers alike. In recent years, the price per kg of briquettes has become a crucial factor affecting fuel procurement decisions, especially as industries look for low-cost, environment-friendly options to coal and other fossil fuels.
The growing emphasis on cleaner energy has driven the demand for briquette coal—a compressed, carbon-neutral energy source derived from farm residues, wood dust, and biodegradable materials. As India works toward its renewable energy targets, bio-based energy sources 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 biomass briquettes as a clean-burning, cost-efficient replacement 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.
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 eliminates moisture and enhances the calorific value, making it suitable for industrial boilers and furnaces. These briquettes are uniform in size, easy to transport, and generate minimal ash content, ensuring cleaner combustion compared to traditional coal.
Depending on the source material, briquette coal can be classified as biomass, biocoal, or hybrid briquettes. While standard briquettes rely fully on organic matter, carbonised briquettes often contain a small portion of carbon matter for higher combustion efficiency. 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 briquettes price per kg in India is influenced by several key factors, including feedstock supply, logistics, and market trends. In key biomass-producing regions such as Punjab and Maharashtra, the easy access to agro-waste keeps production costs relatively low. In contrast, cities and industrial belts where raw materials need to be shipped over long distances 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 fluctuate upward from supply constraints. Despite these variations, briquettes remain an economical alternative to coal, which can cost almost double per energy output.
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 even density promotes stable burning, reducing equipment maintenance and improving energy output. Moreover, briquettes are renewable and carbon-neutral, as the carbon dioxide released during combustion is balanced naturally through vegetation cycles.
In contrast, conventional coal fuels add to major pollution, and long-term air quality decline. 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 stimulated wider use of green fuels. The MNRE and related departments 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 set to become a cornerstone of India’s long-term energy strategy. The creation of organised marketplaces and digital trading platforms has further improved efficiency and reach, enabling fair market participation.
Challenges Facing the Biomass Briquette Market
Despite its promising growth, the biomass briquette sector faces several limitations. Fluctuating feedstock availability can lead to unstable output rates. 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 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.
The Economic and Environmental Benefits of Bio Mass Briquettes
The adoption of bio-coal fuel provides both economic and environmental gains. For industries, transitioning to biomass lowers operational expenditure and emission costs. On a macroeconomic level, it enhances farmer earnings through residue monetisation. Environmentally, briquettes limit forest depletion, lower carbon impact, and control air pollution.
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 compressed bio briquettes reflects a nationwide transition toward cleaner and more affordable fuels. Although the biomass briquette cost may differ briquettes price per kg by area and timing, the sustained advantages surpass temporary challenges. With ongoing technological development and government backing, India is on track to make biomass a cornerstone of its green energy future.