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Biomass Energy in India: Unlocking a Scalable and Sustainable Green Future

Biomass Energy in India: Unlocking a Scalable and Sustainable Green Future

India is at a transformative crossroads in its energy transition journey. With increasing global and domestic pressure to decarbonize its economy and reduce dependence on fossil fuels, the country must urgently explore alternative energy sources that are not only green but also scalable, reliable, and inclusive. Among the various renewable energy options, biomass stands out as a firm and dependable energy source—especially when compared to intermittent sources like solar and wind. Its ability to provide base-load power makes biomass a critical component of India’s energy mix.

This article explores the current landscape, potential, and challenges of biomass energy in India, with a particular focus on biomass pellets—both torrefied and non-torrefied—and their applications across industries. It also highlights the urgent need for policy reforms, regulatory mandates, and sustainable economic models to catalyze the growth of the biomass sector.


Biomass: A Firm and Scalable Green Energy Source

Unlike solar and wind energy, which are subject to weather conditions and time-of-day limitations, biomass offers consistent and controllable energy output. This reliability is particularly valuable for industrial applications and thermal power generation, where uninterrupted energy supply is essential.

India’s vast agricultural base makes biomass readily available. Crop residues, agro-waste, and forestry by-products can be converted into energy through combustion, gasification, or pelletization. This not only provides a sustainable energy source but also helps manage agricultural waste, which otherwise contributes to environmental pollution—especially in the form of stubble burning in northern India.


Pelletization: The Gateway to Biomass Utilization

Pelletization is a key technology that enables the efficient use of biomass. Pellets are compact, energy-dense, and easy to transport and store. They can be used in a variety of applications, from household cooking to industrial heating and power generation.

SAMARTH: A National Mission for Biomass Co-Firing

SAMARTH (Sustainable Agrarian Mission on Use of Agro Residue in Thermal Power Plants) is a national mission launched to decarbonize India’s coal-based thermal power plants by accelerating biomass pellet co-firing. It is more than a policy—it’s a movement that positions biomass not just as a fuel, but as a solution to pollution, rural unemployment, and climate change.

Key Achievements and Impact

=Crop to Kilowatt: India produces ~230 million metric tonnes (MMT) of surplus agri-residue annually. Co-firing just 100 MMT can generate 100 billion units (BU) of clean energy, creating a ₹55,000 crore market.


Economic Upliftment:

  • Farmers can earn ₹15,000–20,000 crore annually.
  • Pellet manufacturers can tap into a ₹28,000–35,000 crore market.
  • Carbon Reduction: Replacing 1 tonne of coal with biomass avoids ~1.2 tonnes of CO₂. SAMARTH has already prevented over 37 LMT of CO₂ emissions.


Operational Progress:

  • 71 thermal power plants co-firing biomass
  • ~31 LMT biomass co-fired
  • 100+ awareness programs across 18 states
  • ₹52.5 crore budget under MNRE Phase 1


Science, Standards & Market Access

  • 12 R&D projects (CPRI), 8 innovation grants (DST)
  • 20 BIS standards, 24 NABL labs
  • Biomass pellets now traded on GeM and e-NAM
  • Digital procurement and long-term contracts improving ease of business
  • NCR Focus & Just Transition
  • Punjab and Haryana show 70% and 40% reduction in stubble burning
  • Policies like ₹1000/acre incentives and ₹2500–3000/tonne biomass rates support farmers
  • Inclusion in Priority Sector Lending and relaxed norms ensure equitable growth


Non-Torrefied Pellets: Current Limitations

Currently, non-torrefied biomass pellets are used in thermal power plants, but their usage is limited to around 10% as a coal replacement. This is primarily due to:

  • Lower energy density
  • Higher moisture content
  • Challenges in handling and combustion

While they offer environmental benefits, these technical limitations restrict their scalability in high-demand applications. Their use remains confined to specific conditions and requires significant operational adjustments.


Torrefied Pellets: A Game-Changer

Torrefied pellets undergo a thermal treatment process that enhances their properties, making them a more viable substitute for coal. They offer:

  • Higher energy density
  • Lower moisture content
  • Improved grindability
  • Better combustion characteristics

These attributes allow torrefied pellets to replace 30–40% or more of coal usage in thermal power plants. This opens up significant opportunities for decarbonizing India’s power sector and reducing its carbon footprint.


Expanding Applications Beyond Power Plants

While thermal power plants remain the primary consumers of biomass pellets, there is immense potential for their use in other industries:

  • Steel and Cement: These energy-intensive sectors can use biomass for heating and process energy.
  • Quick Service Restaurants (QSRs): Biomass can replace LPG and other fossil fuels in commercial kitchens.
  • Food Processing and FMCG: Biomass offers a clean and cost-effective energy source for drying, roasting, and other processes.
  • Brick Kilns: Traditionally reliant on coal and wood, brick kilns can transition to biomass for cleaner operations.

                These sectors represent a vast untapped market for biomass pellets, which can drive demand and support the growth of the biomass industry.


Market Challenges: The Demand Dilemma

Despite the availability of biomass and the existence of eligible industries, the market for biomass pellets remains stagnant. The primary reason is the lack of demand, driven by concerns over marginal cost escalation.

Industries are reluctant to switch from coal or other fossil fuels to biomass due to:

  • Perceived increase in operational costs
  • Lack of awareness about long-term benefits
  • Absence of regulatory mandates
  • Uncertainty in supply chain and quality standards

This reluctance has created a chicken-and-egg situation—without demand, producers are hesitant to invest, and without supply, industries are unwilling to adopt.


Economic Model: Moving Beyond Subsidies

To overcome this impasse, India needs a sustainable economic model based on the user-pay principle. Relying on subsidies or Viability Gap Funding (VGF) is not a long-term solution, as it makes the model vulnerable to policy changes and budget constraints.

Key Recommendations for a Sustainable Economic Model

  • Internalize environmental costs of fossil fuels through carbon pricing
  • Provide carbon credits or tax incentives for biomass adoption
  • Create market-based mechanisms that reward clean energy usage
  • Encourage public-private partnerships for infrastructure development

By shifting the cost burden to users and aligning incentives with sustainability goals, India can create a robust and self-sustaining biomass ecosystem.

Policy Imperatives: The Need for Clear Guidelines and Enforcement

The growth of the biomass industry hinges on strong policy support. Currently, the absence of clear guidelines, mandates, and enforcement mechanisms has created ambiguity and inertia.


Key Policy Recommendations

1.            Mandatory Biomass Usage Targets: Set enforceable targets for biomass usage in thermal power plants and other industries.

2.            Standardization and Quality Control: Develop standards for pellet quality, torrefaction processes, and supply chain management.

3.            Regulatory Framework: Establish a regulatory body to oversee biomass energy implementation and compliance.

4.            Incentives for Early Adopters: Provide tax breaks, carbon credits, or priority access to green financing for industries that adopt biomass.

5.            Awareness and Capacity Building: Launch campaigns to educate stakeholders about the benefits and feasibility of biomass energy.

Once these regulations are in place and enforced, the Indian biomass industry is poised for exponential growth.


Environmental and Social Benefits

Beyond energy generation, biomass offers several co-benefits that align with India’s broader development and climate goals:

  • Reduction in air pollution from crop burning
  • Employment generation in rural areas through biomass collection and processing
  • Improved energy access in remote regions
  • Contribution to India’s climate goals under the Paris Agreement

These benefits make biomass not just an energy solution but a holistic development tool that supports environmental sustainability, economic inclusion, and rural empowerment.


Conclusion: From Kisan to Kilowatt

Biomass energy represents a firm, scalable, and green alternative to fossil fuels. With the advent of torrefied pellets, its potential to replace coal in thermal power plants and other industries is more promising than ever. However, the market remains stagnant due to demand-side challenges and lack of policy support.

To unlock the full potential of biomass, India must:

  • Move towards a user-pay economic model
  • Establish clear and enforceable regulations
  • Promote diversified applications across industries
  • Invest in awareness, infrastructure, and innovation

With the right interventions, biomass can become a cornerstone of India’s sustainable energy future—powering industries, protecting the environment, and empowering communities. SAMARTH is paving the way for a just, green, and scalable energy transition—from Kisan to Kilowatt.




By Zubin Anand, Satish Upadhyay
(Zubin Anand is in Technical Services, National Biomass Mission, Ministry of Power & Executive {Bioenergy}, NTPC Ltd. Satish Upadhyay is Chairman BGAF, Ex-Mission Director, National Biomass Mission, Ministry of Power & Ex-Executive Director, NTPC Ltd.)

(The content of this article reflects the views of writer and contributor, not necessarily those of the publisher and editor. All disputes are subject to the exclusive jurisdiction of competent courts and forums in Delhi/New Delhi only)

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