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Biomass & Briquette Market in India: Exploring Price Patterns and the Nation’s Increasing Move Toward Biofuel Solutions

India’s renewable energy landscape is rapidly evolving, with biomass playing a significant role 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 agro-waste and forest residues. As India advances in achieving its renewable energy targets, renewable solid fuels are playing a important role in lowering pollution levels and promoting self-sufficiency in energy, particularly for village-based enterprises and small factories.

What Biomass Means and How It Supports India’s Energy Goals

Biomass potential in India comprises a wide array of natural residues available from farmlands, forests, and biodegradable waste. With over half a billion tonnes of crop waste produced each year, the country holds immense potential for biomass utilisation in power generation and thermal energy. 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 supports local livelihoods and enhances the value of agricultural residues that would otherwise go to waste.

Manufacturing and Material Structure of Briquette Coal

Biocoal briquettes is manufactured through high-pressure densification such as farm residues, sawdust, and organic materials into compressed shapes of uniform size. The process reduces moisture to increase energy content, making it suitable for industrial boilers and furnaces. These briquettes are uniform in size, easy to transport, and generate minimal ash content, ensuring a more efficient and cleaner burn.

Depending on the raw input, briquette coal can be classified as biomass, biocoal, or hybrid briquettes. While standard briquettes rely fully on organic matter, bio coal 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 organic mix and manufacturing process.

Understanding the Cost of Briquettes per Kilogram 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, 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 energy output and input cost. During times of biomass surplus, briquette coal when supply is abundant, prices tend to stabilise. However, in monsoon months or during high-demand industrial periods, prices may rise due to limited feedstock availability and increased transportation costs. Despite these variations, briquettes remain cheaper than most fossil fuels, which can cost much higher per thermal unit.

Biomass Briquettes vs Conventional Coal

The substitution of coal with bio mass briquettes offers multiple gains in terms of eco performance and production reliability. Briquettes emit fewer pollutants and toxic gases, which helps industries comply with emission norms. Their standardised form enhances boiler efficiency, reducing machine wear and boosting performance. Moreover, briquettes are derived from sustainable sources, as the carbon dioxide released during combustion is offset through photosynthesis.

In contrast, traditional coal contributes heavily to greenhouse gas emissions, and long-term air quality decline. Its extraction and transportation processes are also destructive to land and wildlife. By replacing even a portion of industrial coal consumption with biomass 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 sustainability and job creation have encouraged industries to adopt biomass-based fuels. The Ministry of New and Renewable Energy (MNRE) 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 a carbon-neutral India by 2070, biomass energy is recognised as an essential pillar of India’s green growth plan. The creation of structured biomass markets has further simplified procurement and pricing, enabling buyers and sellers to connect more efficiently.

Challenges Facing the Biomass Briquette Market

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 end-market expense, making coal a temporary but less sustainable choice.

Furthermore, insufficient education on biomass advantages remains a barrier to widespread adoption. Addressing these issues through improved infrastructure, better quality control, and government-backed awareness campaigns could help build resilience in the coming years.

Economic and Ecological Value of Biofuel Briquettes

The adoption of biomass briquettes provides both financial and ecological benefits. For industries, switching to briquettes reduces fuel expenses, maintenance costs, and environmental compliance penalties. On a broader economic front, it stimulates rural economies and promotes waste utilisation. Environmentally, briquettes reduce deforestation, curb greenhouse gas emissions, and minimise waste burning.

As the market grows steadily, innovations in machinery design and feedstock management are expected to make production smoother and cost-effective. The establishment of rural briquette hubs can further stabilise supply throughout the year.

Final Thoughts

India’s renewable fuel sector offers a major chance for meeting clean energy targets and supporting rural growth. The increasing demand for biomass fuel and bio mass briquettes reflects a country-wide movement toward sustainable energy use. 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, India is on track to make biomass a cornerstone of its green energy future.

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