Indian Biomass and Briquette Market: Examining Price Movements and the Expanding Transition to Biofuel Options
India’s green energy sector is undergoing swift transformation, with biomass emerging as a key contributor 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 significant factor influencing industrial fuel choices, especially as industries pursue cost-effective and eco-friendly alternatives to coal and other fossil fuels.
The growing emphasis on cleaner energy has driven the demand for biocoal briquettes—a densified, eco-friendly fuel derived from farm residues, wood dust, and biodegradable materials. As India works toward its renewable energy targets, biomass-based fuels are playing a crucial role in cutting greenhouse gas output and promoting energy independence, particularly for village-based enterprises and small factories.
Defining Biomass and Its Importance in India’s Power Mix
Biomass in India includes numerous organic sources available from farmlands, forests, and biodegradable waste. With over 500+ million tonnes of agro-residues available yearly, the country holds immense potential for biomass-based power and heat production. This resource can be converted into various forms of energy such as briquettes and pellets as well as bio-oil and biogas, thereby providing renewable options over coal and oil.
Industries needing consistent thermal output benefit greatly from biomass fuel—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 creates rural job opportunities and adds value to farm by-products that would otherwise go to waste.
Production and Composition of Briquette Coal
Biomass briquette fuel is produced by compressing dry organic matter such as farm residues, sawdust, and organic materials 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 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 carbonised material to increase heat output. Their heating value typically ranges from about 3500–5000 kcal per kilogram, depending on the composition and density of the material used.
Understanding the Cost of Briquettes per Kilogram in India
The briquettes price per kg in India is influenced by several core variables, including availability of residues and distance from production sites. In key biomass-producing regions such as Punjab and Maharashtra, the easy access to agro-waste keeps manufacturing affordable. In contrast, urban and industrial areas where raw materials need to be shipped over long distances tend to experience increased costs.
On average, the price of biomass briquettes ranges between ?6 and ?10 per kilogram, depending on energy output and input cost. During times of biomass surplus, when supply is abundant, prices tend to be more affordable. 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 much higher per thermal unit.
How Biomass Briquettes Differ from Traditional Coal
The replacement of coal by biomass fuel 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 standardised form enhances boiler efficiency, reducing operational downtime. Moreover, briquettes are derived from sustainable sources, as the carbon dioxide released during combustion is balanced naturally through vegetation cycles.
In contrast, traditional coal contributes heavily to greenhouse gas emissions, air pollution, and environmental degradation. Its extraction and transportation processes are also destructive to land and wildlife. By replacing even a portion of coal usage in factories with bio-briquettes, India can significantly cut its carbon footprint while supporting rural fuel economies.
Policies and Growth Drivers for Biomass Energy in India
Government initiatives have significantly contributed in advancing renewable biofuel markets. Policies promoting sustainability and job creation have motivated businesses to switch to bioenergy. The MNRE and related departments has supported the development of bioenergy projects and briquette industries through various incentive schemes.
Additionally, green energy credits and policy mandates have provided economic motivation for clean-fuel users. With the government’s focus on achieving net-zero emissions by 2070, biomass energy is set to become a cornerstone of India’s sustainable energy roadmap. The creation of organised marketplaces and digital trading platforms has further enhanced transparency and accessibility, enabling smoother trade operations.
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 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, insufficient education on biomass advantages remains a key challenge for expansion. Addressing these issues through improved infrastructure, better quality control, and government-backed awareness campaigns could help stabilise the market and ensure sustainable growth.
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 limit forest depletion, lower carbon impact, and control air pollution.
As the market grows steadily, innovations in briquetting technology, moisture control, and waste utilisation are expected to make production more efficient and affordable. The establishment of small-scale plants close biomass in india to farms can further reduce transportation costs and ensure year-round availability.
Conclusion
The nation’s biomass industry stands as a key pillar for balancing sustainability with inclusive progress. The increasing demand for biomass fuel 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 continued investment, policy support, and innovation, India is on track to make biomass a cornerstone of its green energy future.