Indian Biomass and Briquette Market: Examining Price Movements and the Expanding Transition to Biofuel Options
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 bio-based fuel has created a dynamic market for producers, traders, and consumers alike. In recent years, the price per kg of briquettes has become a key factor shaping industrial energy preferences, especially as industries seek affordable, sustainable substitutes to coal and other fossil fuels.
The increasing focus on renewable power has boosted the demand for biocoal briquettes—a densified, eco-friendly fuel derived from agro-waste and forest residues. As India advances in achieving its renewable energy targets, renewable solid fuels are playing a important 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 cement plants, textile mills, and food factories. These sectors have increasingly turned to bio mass 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 improves heat efficiency through drying, making it suitable for large-scale industrial applications. 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 categorised into biomass briquettes, bio coal, or mixed 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 feedstock type and compaction level.
Understanding the Cost of Briquettes per Kilogram in India
The cost of briquette fuel per kilogram in India is influenced by several core variables, including raw material availability, regional demand, transportation costs, and seasonal variations. In key briquette coal biomass-producing regions such as Punjab and Maharashtra, the easy access to agro-waste 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 varies from ?6 to ?10/kg, depending on energy output and input cost. During times of biomass surplus, when supply is abundant, prices tend to stabilise. However, in off-seasons or when transport challenges arise, prices may rise due to limited feedstock availability and increased transportation costs. 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 advantages in terms of eco performance and production reliability. Briquettes emit fewer pollutants and toxic gases, which helps industries comply with emission norms. Their uniform size ensures consistent combustion, 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, traditional coal contributes heavily to greenhouse gas emissions, and long-term air quality decline. Its mining and logistics are also highly polluting and resource-draining. By replacing even a portion of coal usage in factories with bio-briquettes, India can move closer to net-zero goals while encouraging domestic biomass industries.
Government Support and Biomass Sector Expansion in India
Government initiatives have played a major role 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 bioenergy projects and briquette industries through grants and funding initiatives.
Additionally, carbon trading programs and RPO compliance rules have provided monetary benefits to eco-conscious industries. With the government’s focus on a carbon-neutral India by 2070, biomass energy is positioned as a key component of India’s long-term energy strategy. The creation of structured biomass markets has further improved efficiency and reach, enabling smoother trade operations.
Barriers and Issues in the Biomass Briquette Industry
Despite its strong potential, the biomass briquette sector faces several challenges. Inconsistent residue supply across seasons can lead to variability in supply. The inconsistent heating efficiency also reduces buyer confidence. In some regions, supply chain inefficiencies increase the end-market expense, making coal a more attractive in the short term.
Furthermore, insufficient education on biomass advantages remains a barrier to widespread adoption. Addressing these issues through enhanced production systems and policy support 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, 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 expands and develops, innovations in briquetting technology, moisture control, and waste utilisation are expected to make production cheaper and faster. The establishment of rural briquette hubs can further cut logistic expenses and improve accessibility.
Final Thoughts
India’s renewable fuel sector offers a major chance for balancing sustainability with inclusive progress. The increasing demand for biomass fuel and bio mass briquettes reflects a nationwide transition toward cleaner and more affordable fuels. Although the briquettes price per kg may vary across regions and seasons, the long-term benefits of using biomass as an energy source far outweigh short-term fluctuations. With continued investment, policy support, and innovation, biomass will play a defining role in India’s clean energy era.