Indian Biomass and Briquette Market: Examining Price Movements and the Expanding Transition to Biofuel Options
India’s renewable energy landscape is rapidly evolving, 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 growing sector for producers, traders, and consumers alike. In recent years, the price per kg of briquettes has become a crucial factor shaping industrial energy preferences, especially as industries pursue cost-effective and eco-friendly alternatives to coal and other fossil fuels.
The growing emphasis on cleaner energy has accelerated 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 pivotal role in reducing carbon emissions and promoting energy independence, particularly for rural industries and small-scale manufacturing units.
Understanding Biomass and Its Role in India’s Energy Sector
Biomass in India includes numerous organic sources available from crop residues and organic matter. With over 500+ million tonnes of agro-residues available yearly, the country holds huge potential for biomass-based power and heat production. This resource can be converted into various forms of energy such as solid, liquid, and gaseous biofuels, thereby providing clean substitutes for conventional fossil fuels.
Industries needing consistent thermal output benefit greatly from biomass fuel—such as cement plants, textile mills, and food factories. 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 creates rural job opportunities and enhances the value of agricultural residues that would otherwise go to waste.
Manufacturing and Material Structure of Briquette Coal
Briquette coal is created by compacting dry biomass such as crop residues, wood shavings, and other biodegradable waste into dense fuel logs or blocks. The process eliminates moisture and enhances the calorific value, making it suitable for high-demand industrial use. These briquettes are compact, easy to handle, and ensure clean combustion, ensuring cleaner combustion compared to traditional coal.
Depending on the feedstock, briquette coal can be divided into various types like biomass or carbonised blends. While biomass briquettes are made purely from organic waste, carbonised 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.
Analysing Briquettes Price per Kg 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 prices competitive. In contrast, cities and industrial belts where raw materials need to be brought from distant rural areas 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 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 significantly more per unit of heat energy produced.
Comparing Biomass Briquettes and Traditional Coal
The bio mass briquettes shift from coal to biomass briquettes offers multiple benefits in terms of environmental sustainability and operational efficiency. Briquettes generate minimal smoke and ash, which helps industries meet environmental regulations. Their uniform size ensures consistent combustion, reducing machine wear and boosting performance. 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 mining and logistics are also destructive to land and wildlife. By replacing even a portion of coal usage in factories with bio-briquettes, India can move closer to net-zero goals while promoting localised fuel production.
Government Support and Biomass Sector Expansion in India
Government initiatives have significantly contributed in expanding the biomass sector. Policies promoting clean fuel adoption and emission reduction have stimulated wider use of green fuels. The MNRE and related departments has supported the development of bioenergy projects and briquette industries 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 positioned as a key component of India’s long-term energy strategy. The creation of organised marketplaces and digital trading platforms has further enhanced transparency and accessibility, 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 challenges. Seasonal variations in raw material supply can lead to inconsistent production levels. The lack of standardisation in quality and calorific value 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, insufficient education on biomass advantages remains a barrier to widespread adoption. Addressing these issues through upgraded logistics, standard guidelines, and public outreach could help strengthen sectoral confidence and expansion.
The Economic and Environmental Benefits of Bio Mass Briquettes
The adoption of bio-coal fuel provides both commercial and green advantages. For industries, transitioning to biomass lowers operational expenditure and emission costs. On a national scale, it supports local economies by creating demand for agricultural residues and offering new income streams for farmers. Environmentally, briquettes help combat climate change and improve air quality.
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 decentralised briquette production units near agricultural zones can further cut logistic expenses and improve accessibility.
Summary
The nation’s biomass industry stands as a key pillar for balancing sustainability with inclusive progress. The increasing demand for briquette coal and biomass briquette fuel reflects a shift toward renewable energy alternatives. Although the briquettes price per kg may fluctuate geographically and seasonally, the long-term benefits of using biomass as an energy source far outweigh short-term fluctuations. With ongoing technological development and government backing, biomass will play a defining role in India’s clean energy era.