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Biomass and Briquette Market in India: Analysing Price Trends and the Growing Shift Toward Biofuel Alternatives

The renewable energy domain in India is witnessing rapid evolution, with biomass emerging as a key contributor in the nation’s eco-friendly power strategy. The rising adoption of bio mass briquettes and other forms of eco energy has created a vibrant marketplace for producers and industrial buyers. In recent years, the briquettes price per kg has become a significant factor affecting fuel procurement decisions, especially as industries look for low-cost, environment-friendly options to coal and other fossil fuels.

The rising awareness of clean fuel usage has driven 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 crucial 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 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 immense potential for biomass utilisation in power generation and thermal energy. This resource can be converted into different usable fuels such as briquettes and pellets as well as bio-oil and biogas, thereby providing clean substitutes for conventional fossil fuels.

Continuous-heat industries gain from adopting biomass energy—such as manufacturing, textile, and agro-processing sectors. These sectors have increasingly turned to bio-coal briquettes as a sustainable and affordable option for traditional fuels. In addition to minimising pollution, 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

Briquette coal is produced by compressing dry organic matter such as agricultural and forestry waste into compressed shapes of uniform size. 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 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 3500 to 5000 kcal/kg, 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 states with strong agro bases like Maharashtra, Punjab, and Haryana, the ready supply of biomass feedstock keeps manufacturing affordable. 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 energy output and input cost. During peak agricultural seasons, 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 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 standardised form enhances boiler efficiency, 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, air pollution, and environmental degradation. Its mining and logistics are also energy-intensive and harmful to ecosystems. By replacing even a portion of coal usage in factories with bio-briquettes, India can significantly cut its carbon footprint while encouraging domestic biomass industries.

Policies and Growth Drivers for Biomass Energy in India

Government initiatives have been instrumental in advancing renewable biofuel markets. Policies promoting renewable energy, carbon reduction, and rural employment have motivated businesses to switch to bioenergy. The national renewable energy authorities has supported the development of biomass briquette coal power plants and briquetting units 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 long-term decarbonisation goals, biomass energy is positioned as a key component of India’s long-term energy strategy. The creation of online biofuel exchanges and transparent trade systems has further improved efficiency and reach, enabling smoother trade operations.

Obstacles Affecting India’s Biomass Briquette Sector

Despite its rapid progress, the biomass briquette sector faces several limitations. 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 end-market expense, making coal a temporary but less sustainable choice.

Furthermore, insufficient education on biomass advantages remains a key challenge for expansion. Addressing these issues through improved infrastructure, better quality control, and government-backed awareness campaigns could help stabilise the market and ensure sustainable growth.

The Economic and Environmental Benefits of Bio Mass Briquettes

The adoption of bio-coal fuel provides both economic and environmental gains. 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 continues to mature, innovations in processing efficiency and drying techniques are expected to make production more efficient and affordable. The establishment of small-scale plants close to farms 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 nationwide transition toward cleaner and more affordable fuels. Although the biomass briquette cost may differ by area and timing, the long-term benefits of using biomass as an energy source far outweigh short-term fluctuations. With ongoing technological development and government backing, biomass energy is set to become one of the key pillars of India’s renewable energy future.

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