There is a growing awareness for the need to look for renewable and sustainable energy sources in the world today. In India, biomass pellets and briquettes have begun to gain much demand particularly in rural households and in small scale industries. Otherwise termed biomass wood pellets, these compressed forms of agricultural waste and wood residues offered a source of energy that is clean and efficient. 

Reasons for Growing Adoption

India is targeting that by 2030, the renewable energy in its overall energy capacity should be at least 40 percent. Biomass pellets align with this vision as they provide the following benefits:

1. Affordability 

Biomass pellets cost way cheaper than LPG cylinders or electricity for people in the rural area or low income earners. The raw material is also readily available in this region.

2. Reduced Deforestation

In concurrence with fuelwood, pellets are available reducing pressure on the forests. According to research over 70 percent of the rural population in India use fuelwood for cooking.

3. Waste Utilization 

Products of agricultural waste such as paddy straw and cotton stalks can also be recycled to give out pellets. It has its relevance in waste collection and disposal.

Prime Minister Structural Inability Loan Scheme 

Various government initiatives are also driving the adoption of biomass pellets:

National Biomass Cookstoves Initiative by MNRE centers on creation of pellet production facilities and sale of pellet stoves at reasonable prices.

There is incentive for many states for establishing the pellet manufacturing plants.

Appearance at the market of robust industrial pellets makers  

Biomass pellets in earlier pasts were only prepared from a cluster or village level. However, in the last decade the commercial manufacturers have set up their large manufacturing factories all over the country. 

Key Trends and Insights

Based on the growth patterns in recent years, following are the key highlights regarding biomass pellets industry in India:

  • Heightened Investments and Production capacity 
  • It was estimated that there are more than 150 biomass pellet plants in India along with 60 more in pipeline. 
  • The forecasted total annual production capacity for the industry will surpass 8 million MT mark by 2025.

Growing Pellet Exports

  • Raw material availability makes India started setting its ground in exporter place.
  • Monthly butter export has risen from 1500 metric tones in 2016 to more than sixty thousand metric tones currently
  • It is exported mainly to South Korea, Vietnam, Japan and other European countries.

The Leakage from the Unorganized to the Organized Sector

Independent commercial pellet plants contribution also grew to 55% within the last five years from 35%.

Product quality enhanced and the supply chain made more reliable with organised players

Way Forward for the Industry

While the pellet sector holds immense potential, concentrated efforts in certain areas can accelerate the growth further:

  • Adopting measures that provide clear assurances of purchasing products that are produced, especially from small farmers.
  • Creation of generic protocol for production of pellets  

a) The customers according to additional marketing and distribution to rural areas

- Financial aid for establishment of pellet based power plant

Switching from using biomass fuel briquettes

Biomass briquettes of equal importance are produced from the similar feedstock and are finding a similar level of market acceptance as pellets. They could perhaps provide sustainable solutions to energy needs of individual house-holds in rural areas as well as the industrial projects.