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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 clean energy portfolio. The rising adoption of bio-fuel briquettes and other forms of renewable fuel has created a dynamic market for manufacturers, suppliers, and users alike. In recent years, the cost per kilogram of briquettes has become a key 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 compressed biomass briquettes—a sustainable solid 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.

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 half a billion tonnes of crop waste produced each year, 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 manufactured through high-pressure densification such as crop residues, wood shavings, and other biodegradable 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 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 categorised into biomass briquettes, bio coal, or mixed blends. While pure biomass briquettes use only non-carbonised residue, hybrid 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 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 fluctuate upward from supply constraints. Despite these variations, briquettes remain cheaper than most fossil fuels, which can cost almost double per energy output.

Biomass Briquettes vs Conventional Coal

The substitution of coal with bio mass briquettes offers multiple gains in terms of clean energy transition and cost control. 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 MNRE and related departments 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 briquettes price per kg economic motivation for clean-fuel users. With the government’s focus on a carbon-neutral India by 2070, biomass energy is positioned as a key component of India’s sustainable energy roadmap. The creation of online biofuel exchanges and transparent trade systems has further simplified procurement and pricing, enabling fair market participation.

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 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.

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 broader economic front, 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 machinery design and feedstock management are expected to make production more efficient and affordable. The establishment of small-scale plants close to farms can further reduce transportation costs and ensure year-round availability.

Final Thoughts

India’s biomass sector represents a critical opportunity 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.

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