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Indian Biomass and Briquette Market: Examining Price Movements and the Expanding Transition to Biofuel Options

The renewable energy domain in India is witnessing rapid evolution, 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 vibrant marketplace for producers and industrial buyers. In recent years, the cost per kilogram of briquettes has become a significant factor influencing industrial fuel choices, especially as industries seek affordable, sustainable substitutes to coal and other fossil fuels.

The increasing focus on renewable power has boosted the demand for biocoal briquettes—a densified, eco-friendly fuel derived from agricultural waste, sawdust, and other organic residues. As India continues to pursue its renewable energy targets, biomass-based fuels are playing a pivotal role in reducing carbon emissions and promoting energy independence, particularly for rural production sectors.

Defining Biomass and Its Importance in India’s Power Mix

India’s biomass resources refers to the vast range of organic materials available from agriculture, forestry, and organic waste streams. With over 500 million tonnes of agricultural residue generated annually, the country holds considerable potential for using biomass in industrial energy generation. This resource can be converted into multiple energy formats such as briquettes, pellets, biochar, and biogas, thereby providing renewable options over coal and oil.

Biomass energy is particularly beneficial for industries that rely on continuous heat generation—such as manufacturing, textile, and agro-processing sectors. These sectors have increasingly turned to biomass briquettes as a sustainable and affordable option for traditional fuels. In addition to reducing emissions, the widespread use of biomass contributes to rural employment 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 farm residues, sawdust, and organic materials into solid cylindrical or rectangular blocks. 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 eco-friendly burning and less residue.

Depending on the raw input, briquette coal can be classified as biomass, biocoal, or hybrid briquettes. 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.

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 ready supply of biomass feedstock keeps production costs relatively low. 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 heat value and quality control. During peak agricultural seasons, when supply is abundant, prices tend to be more affordable. 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 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 substitution of coal with bio mass briquettes 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, climate damage and ecological loss. Its extraction and transportation processes are also highly polluting and resource-draining. 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.

Biomass in India: Policy Support and Market Growth

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 power plants and briquetting units through grants and funding initiatives.

Additionally, green energy credits and policy mandates have provided monetary benefits to eco-conscious industries. With the government’s focus on achieving net-zero emissions by 2070, 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. Seasonal variations in raw material supply can lead to unstable output rates. The absence of uniform product standards also reduces buyer confidence. In some regions, supply chain inefficiencies increase the end-market expense, making coal a more attractive in the short term.

Furthermore, low awareness among industrial users remains a major limitation. Addressing these issues through enhanced production systems and policy support could help stabilise the market and ensure sustainable growth.

Economic and Ecological Value of Biofuel Briquettes

The adoption of bio-coal fuel provides both economic and environmental gains. For industries, switching to briquettes reduces fuel expenses, maintenance costs, and environmental compliance penalties. 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 rural briquette hubs can further stabilise supply throughout the year.

Conclusion

The nation’s biomass industry stands as a key pillar for achieving sustainable energy goals while addressing rural economic development. The increasing demand for bio coal and compressed bio briquettes reflects a nationwide transition toward cleaner and more affordable fuels. Although the biomass briquette cost may differ by area and timing, the sustained advantages surpass temporary challenges. With continued investment, policy support, and innovation, India is on briquettes price per kg track to make biomass a cornerstone of its green energy future.