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 clean energy portfolio. The rising adoption of bio mass briquettes and other forms of renewable fuel has created a growing sector for producers and industrial buyers. In recent years, the price per kg of briquettes has become a significant factor shaping industrial energy preferences, especially as industries look for affordable, sustainable substitutes to coal and other fossil fuels.
The growing emphasis on cleaner energy has boosted the demand for briquette coal—a sustainable solid fuel derived from agro-waste and forest residues. As India continues to pursue its renewable energy targets, renewable solid fuels are playing a important role in cutting greenhouse gas output and promoting decentralised energy generation, particularly for rural production sectors.
What Biomass Means and How It Supports India’s Energy Goals
Biomass potential in India includes numerous organic sources available from agriculture, forestry, and organic waste streams. With over half a billion tonnes of crop waste produced each year, the country holds huge potential for using biomass in industrial energy generation. This resource can be converted into different usable fuels 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 bio-coal briquettes as a green, low-cost substitute for traditional fuels. In addition to lowering carbon footprints, the widespread use of biomass supports local livelihoods and adds value to farm by-products that would otherwise go to waste.
Production and Composition of Briquette Coal
Biocoal briquettes is produced by compressing dry organic matter such as agricultural and forestry waste into dense fuel logs or 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 a more efficient and cleaner burn.
Depending on the raw input, briquette coal can be categorised into biomass briquettes, bio coal, or mixed blends. While pure biomass briquettes use only non-carbonised residue, carbonised briquettes often contain a small portion of carbon matter for higher combustion efficiency. Their heating value typically ranges from 3,500–5,000 kcal/kg on average, depending on the organic mix and manufacturing process.
Analysing Briquettes Price per Kg in India
The cost of briquette fuel per kilogram 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 manufacturing affordable. In contrast, non-agricultural zones where raw materials need to be brought from distant rural areas tend to experience higher pricing.
On average, the price of biomass briquettes typically falls in the ?6–?10/kg range, depending on calorific value and production efficiency. During harvest periods, when supply is abundant, prices tend to stabilise. However, in monsoon months or during high-demand industrial periods, 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 almost double per energy output.
Biomass Briquettes vs Conventional Coal
The substitution of coal with bio mass briquettes offers multiple advantages in terms of clean energy transition and cost control. Briquettes emit fewer pollutants and toxic gases, which helps industries maintain green standards. Their uniform size ensures consistent combustion, reducing equipment maintenance briquette coal and improving energy output. Moreover, briquettes are derived from sustainable sources, as the carbon dioxide released during combustion is offset through photosynthesis.
In contrast, conventional coal fuels add to major pollution, air pollution, and environmental degradation. Its mining and logistics are also energy-intensive and harmful to ecosystems. 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 significantly contributed in advancing renewable biofuel markets. Policies promoting renewable energy, carbon reduction, and rural employment have stimulated wider use of green fuels. The Ministry of New and Renewable Energy (MNRE) 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 achieving net-zero emissions by 2070, biomass energy is recognised as an essential pillar of India’s green growth plan. The creation of organised marketplaces and digital trading platforms has further improved efficiency and reach, 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, logistical bottlenecks and transportation costs increase the final price for end-users, making coal a more attractive in the short term.
Furthermore, limited awareness about the long-term economic and environmental benefits 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 biomass briquettes provides both financial and ecological benefits. For industries, using briquettes minimises expenses and regulatory risks. On a national scale, it supports local economies by creating demand for agricultural residues and offering new income streams for farmers. Environmentally, briquettes reduce deforestation, curb greenhouse gas emissions, and minimise waste burning.
As the market continues to mature, innovations in processing efficiency and drying techniques are expected to make production smoother and cost-effective. The establishment of small-scale plants close 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 vary across regions and seasons, the overall gains exceed occasional cost changes. With continued investment, policy support, and innovation, biomass will play a defining role in India’s clean energy era.