Biomass and Briquette Market in India: Analysing Price Trends and the Growing Shift Toward Biofuel Alternatives
India’s renewable energy landscape is rapidly evolving, with biomass becoming a major pillar 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, traders, and consumers alike. In recent years, the briquettes price per kg has become a significant factor shaping industrial energy preferences, especially as industries pursue low-cost, environment-friendly options to coal and other fossil fuels.
The rising awareness of clean fuel usage 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, bio-based energy sources are playing a pivotal role in reducing carbon emissions and promoting decentralised energy generation, particularly for village-based enterprises and small factories.
Understanding Biomass and Its Role in India’s Energy Sector
India’s biomass resources comprises a wide array of natural residues available from farmlands, forests, and biodegradable waste. With over 500 million tonnes of agricultural residue generated annually, the country holds huge potential for biomass-based power and heat production. 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.
Continuous-heat industries gain from adopting biomass energy—such as cement, textile, and food processing units. These sectors have increasingly turned to bio mass briquettes as a sustainable and affordable option for traditional fuels. In addition to minimising pollution, 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 crop residues, wood shavings, and other biodegradable waste into solid cylindrical or rectangular blocks. The process improves heat efficiency through drying, making it suitable for high-demand industrial use. These briquettes are uniform in size, easy to transport, and generate minimal ash content, 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, bio coal briquettes often contain a small portion of charcoal to enhance calorific value. Their heating value typically ranges from 3,500–5,000 kcal/kg on average, depending on the organic mix and manufacturing process.
Briquette Price Trends Across 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 agricultural states such as Maharashtra, Punjab, Haryana, and Uttar Pradesh, 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 increased costs.
On average, the price of biomass briquettes varies from ?6 to ?10/kg, depending on calorific value and production efficiency. During harvest periods, when supply is abundant, prices tend to remain steady. However, in rainy seasons or energy-demand surges, 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 clean energy transition and cost control. Briquettes burn more cleanly, producing less sulphur dioxide and particulate matter, which helps industries meet environmental regulations. 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 offset through photosynthesis.
In contrast, conventional coal fuels add to major pollution, climate briquette coal damage and ecological loss. Its production and supply chain are also destructive to land and wildlife. By replacing even a portion of coal demand through renewable substitutes, India can greatly reduce emissions 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 renewable energy, carbon reduction, and rural employment have encouraged industries to adopt biomass-based fuels. The MNRE and related departments 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 financial incentives for companies using biomass fuels. With the government’s focus on long-term decarbonisation goals, biomass energy is recognised as an essential pillar of India’s long-term energy strategy. The creation of structured biomass markets has further simplified procurement and pricing, enabling buyers and sellers to connect more efficiently.
Barriers and Issues in the Biomass Briquette Industry
Despite its promising growth, the biomass briquette sector faces several barriers. Inconsistent residue supply across seasons can lead to variability in supply. The inconsistent heating efficiency also hampers market reliability. In some regions, distance from raw material sources increase the overall cost of delivery, making coal a temporary but less sustainable choice.
Furthermore, limited awareness about the long-term economic and environmental benefits remains a barrier to widespread adoption. Addressing these issues through upgraded logistics, standard guidelines, and public outreach could help build resilience in the coming years.
The Economic and Environmental Benefits of Bio Mass Briquettes
The adoption of bio mass briquettes provides both financial and ecological benefits. For industries, using briquettes minimises expenses and regulatory risks. On a broader economic front, it stimulates rural economies and promotes waste utilisation. Environmentally, briquettes help combat climate change and improve air quality.
As the market grows steadily, innovations in processing efficiency and drying techniques are expected to make production more efficient and affordable. The establishment of decentralised briquette production units near agricultural zones can further reduce transportation costs and ensure year-round availability.
Summary
India’s biomass sector represents a critical opportunity for achieving sustainable energy goals while addressing rural economic development. The increasing demand for briquette coal and compressed bio briquettes reflects a shift toward renewable energy alternatives. Although the biomass briquette cost may fluctuate geographically and seasonally, the long-term benefits of using biomass as an energy source far outweigh short-term fluctuations. With continued investment, policy support, and innovation, biomass energy is set to become one of the key pillars of India’s renewable energy future.