Business Opportunities in Biomass Briquettes and Pellets in India

India is facing a significant gap between the demand and supply of biomass briquettes and pellets, presenting vast business opportunities. With an estimated daily demand of approximately 95,000 tons and a current production capacity of just 8,000 to 10,000 tons per day, the sector is ripe for investment and expansion.

Rising Demand for Biomass Briquettes and Pellets

The Indian government has actively promoted biomass-based fuels due to their environmental benefits and cost-effectiveness. A key driver of this demand is the compulsory utilization policy mandated by the Ministry of Environment, Forest, and Climate Change (MoEFCC). As per the notification dated 11th July 2023, all coal-based thermal power plants are required to blend at least 5% biomass briquettes or pellets with coal. With 208+ thermal power plants operating in India and 60+ already implementing co-firing, the demand is expected to surge.

Industrial Usage of Biomass Briquettes and Pellets

Apart from thermal power plants, various industries have started adopting biomass briquettes and pellets due to their cost-effectiveness and environmental sustainability. Some of the major industrial users include:

Textile Mills
Brick Kilns
Food Industry
Leather Industry
Dyeing Houses
Chemical Plants
Food Processing Units
Rubber Industry
Pharmaceutical Industry
Paper Mills
Thermal Power Plants

Expanding Commercial and Domestic Usage

Beyond industrial applications, commercial and domestic sectors are also turning to biomass briquettes and pellets. Hotels, restaurants, and facilities using heat equipment are increasingly adopting these fuels due to their lower emissions and improved energy efficiency. This shift is creating additional market opportunities for entrepreneurs looking to enter this sector.