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


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 biomass briquettes and other forms of bio-based fuel has created a growing sector for producers and industrial buyers. In recent years, the briquettes price per kg has become a significant factor influencing industrial fuel choices, especially as industries look for 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 agro-waste and forest residues. As India works toward its renewable energy targets, bio-based energy sources are playing a crucial role in reducing carbon emissions and promoting energy independence, particularly for rural production sectors.

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


Biomass potential in India comprises a wide array of natural residues 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 clean substitutes for conventional fossil fuels.

Biomass energy is particularly beneficial for industries that rely on continuous heat generation—such as cement, textile, and food processing units. 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 supports local livelihoods and enhances the value of agricultural residues that would otherwise go to waste.

How Briquette Coal Is Made and Its Composition


Biocoal briquettes is manufactured through high-pressure densification such as crop residues, wood shavings, and other biodegradable waste into dense fuel logs or blocks. The process improves heat efficiency through drying, making it suitable for large-scale industrial applications. These briquettes are uniform in size, easy to transport, and generate minimal ash content, ensuring eco-friendly burning and less residue.

Depending on the feedstock, 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 carbon matter for higher combustion efficiency. Their heating value typically ranges from 3500 to 5000 kcal/kg, 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 major determinants, including feedstock supply, logistics, and market trends. In states with strong agro bases like Maharashtra, Punjab, and Haryana, the ready supply of biomass feedstock keeps production costs relatively low. In contrast, non-agricultural zones where raw materials need to be brought from distant rural areas tend to experience higher pricing.

On average, the price of biomass briquettes typically falls in the ?6–?10/kg range, depending on energy output and input cost. During harvest periods, when supply is abundant, prices tend to remain steady. However, in monsoon months or during high-demand industrial periods, prices may increase because of shortages and logistical delays. Despite these variations, briquettes remain a cost-effective fuel compared to traditional coal, which can cost almost double per energy output.

Comparing Biomass Briquettes and Traditional Coal


The replacement of coal by biomass fuel offers multiple gains in terms of clean energy transition and cost control. Briquettes generate minimal smoke and ash, which helps industries comply with emission norms. Their even density promotes stable burning, reducing machine wear and boosting performance. Moreover, briquettes are derived from sustainable sources, as the carbon dioxide released during combustion is reabsorbed by new plant growth.

In contrast, traditional coal contributes heavily to greenhouse gas emissions, climate damage and ecological loss. Its mining and logistics are also destructive to land and wildlife. By replacing even a portion of coal demand through renewable substitutes, India can move closer to net-zero goals while supporting rural fuel economies.

Biomass in India: Policy Support and Market Growth


Government initiatives have significantly contributed in advancing renewable biofuel markets. Policies promoting sustainability and job creation have stimulated wider use of green fuels. The MNRE and related departments has supported the development of bioenergy projects and briquette industries through subsidies and financial assistance programs.

Additionally, carbon credit mechanisms and renewable purchase obligations (RPOs) have provided monetary benefits to eco-conscious industries. 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 fair market participation.

Challenges Facing the Biomass Briquette Market


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 final price for end-users, making coal a cheaper short-term alternative.

Furthermore, low awareness among industrial users remains a key challenge for expansion. Addressing these issues through upgraded logistics, standard guidelines, and public outreach could help stabilise the market and ensure sustainable growth.

Economic and Ecological Value of Biofuel 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 broader economic front, it stimulates rural economies and promotes waste utilisation. Environmentally, briquettes limit forest depletion, lower carbon impact, and control air pollution.

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.

Conclusion


India’s renewable fuel sector offers a major chance for achieving sustainable energy goals while addressing rural economic development. The increasing demand for bio coal and bio mass briquettes 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 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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