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

India’s green energy sector is undergoing swift transformation, 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 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 continues to pursue its renewable energy targets, biomass-based fuels are playing a important role in lowering pollution levels and promoting decentralised energy generation, particularly for rural production sectors.

Understanding Biomass and Its Role in India’s Energy Sector

Biomass potential 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 renewable options over coal and oil.

Continuous-heat industries gain from adopting biomass energy—such as cement plants, textile mills, and food factories. These sectors have increasingly turned to bio mass briquettes as a sustainable and affordable option for traditional fuels. In addition to lowering carbon footprints, the widespread use of biomass supports local livelihoods 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 consistent in shape, portable, and produce very little ash, 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, 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 organic mix and manufacturing process.

Understanding the Cost of Briquettes per Kilogram in India

The cost of briquette fuel per kilogram in India is influenced by several key factors, including raw material availability, regional demand, transportation costs, and seasonal variations. In states with strong agro bases like Maharashtra, Punjab, and Haryana, the biomass in india easy access to agro-waste keeps prices competitive. In contrast, non-agricultural zones 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 burn more cleanly, producing less sulphur dioxide and particulate matter, which helps industries maintain green standards. Their even density promotes stable burning, reducing equipment maintenance and improving energy output. Moreover, briquettes are derived from sustainable sources, as the carbon dioxide released during combustion is offset through photosynthesis.

In contrast, coal burning leads to higher carbon levels, climate damage and ecological loss. Its extraction and transportation processes are also highly polluting and resource-draining. By replacing even a portion of industrial coal consumption with biomass briquettes, India can greatly reduce emissions while supporting rural fuel economies.

Biomass in India: Policy Support and Market Growth

Government initiatives have been instrumental in expanding the biomass sector. Policies promoting clean fuel adoption and emission reduction have stimulated wider use of green fuels. The Ministry of New and Renewable Energy (MNRE) 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 financial incentives for companies using biomass fuels. With the government’s focus on achieving net-zero emissions 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 improved efficiency and reach, enabling fair market participation.

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 reduces buyer confidence. In some regions, supply chain inefficiencies increase the overall cost of delivery, making coal a cheaper short-term alternative.

Furthermore, limited awareness about the long-term economic and environmental benefits remains a major limitation. Addressing these issues through enhanced production systems and policy support could help build resilience in the coming years.

Advantages of Using Biomass Briquettes

The adoption of bio mass briquettes provides both commercial and green advantages. For industries, transitioning to biomass lowers operational expenditure and emission costs. On a macroeconomic level, 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 continues to mature, innovations in processing efficiency and drying techniques are expected to make production cheaper and faster. The establishment of small-scale plants close to farms can further cut logistic expenses and improve accessibility.

Summary

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 overall gains exceed occasional cost changes. With continued investment, policy support, and innovation, biomass will play a defining role in India’s clean energy era.

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