BIOMASS BRIQUETTES

: The Subsitute of coal

 Biomass Brequettes Business
Briquetting technology presents an innovative solution for converting agricultural and
forestry waste into solid fuel. With the application of high mechanical pressure,
these wastes are transformed into cylindrical logs known as briquettes, all
without the need for chemicals or binders.
These eco-friendly briquettes offer a sustainable alternative to traditional fossil fuels
and find applications in various industries such as boilers, furnaces, and kilns.
By harnessing this technology, we can reduce pollution, promote a greener
environment, and save valuable foreign exchange.
The concept of briquetting revolves around the idea of “Wealth from Waste.” Farmers
can generate income by using their agricultural residues to produce briquettes,
effectively turning waste into a valuable resource.
The advantages of this approach extend beyond financial benefits. Briquettes provide a
renewable and efficient energy source, making them a viable solution for our
fuel needs.
 Biomass Brequettes Business
In countries like India, where arable land covers approximately 141 million hectares
and agricultural output reaches around 800 million tons, a significant amount of
waste is generated—approximately 750 million tons. Even after deducting the
portion used as fodder (450 million tons), we are left with a staggering 300
million tons that could be used for biomass generation. Crop residues, including
cane trash, paddy straw, coconut stalks, branches, and mustard waste, contribute
an additional 75 million tons per year.
 Market Potential of Biomass Briquettes
The market potential for biomass briquettes is significant, driven by increasing demand for renewable and sustainable energy
sources. Biomass briquettes offer numerous advantages over conventional fuels, making them an attractive option for
various sectors and industries. Let’s explore the market potential of biomass briquettes in more detail:

 Growing Demand for Renewable Energy: As global awareness of climate change and environmental sustainability
increases, there is a growing demand for renewable energy sources. Biomass briquettes, derived from agricultural and
forestry waste, are considered carbon-neutral since the carbon emitted during combustion is equivalent to the carbon
absorbed by the plants during their growth. This environmentally friendly attribute positions biomass briquettes as a
preferred alternative to fossil fuels.

 Industrial Applications: Biomass briquettes find extensive applications in industrial sectors such as boilers, furnaces,
and kilns. These sectors require a consistent and efficient energy source to meet their heating and power generation
needs. Biomass briquettes provide a reliable fuel option with high calorific value and low ash content, making them
suitable for various industrial processes. Industries such as food processing, textiles, paper, and cement can benefit
from the use of biomass briquettes.

 Residential and Commercial Heating: The residential and commercial sectors also present a significant market for
biomass briquettes. As individuals and businesses seek to transition away from fossil fuels, biomass briquettes offer a
viable alternative for heating homes, offices, schools, and other establishments. The consistent heat output, ease of
use, and environmental benefits make biomass briquettes an appealing choice for heating applications.
 Market Potential of Biomass Briquettes
Agricultural and Rural Areas: In agricultural and rural areas, where agricultural residues are abundant, biomass
briquettes provide a valuable opportunity to monetize agricultural waste. Farmers can convert crop residues such as
straw, husks, and stalks into briquettes, creating an additional income stream. Moreover, biomass briquettes can be
used for cooking and heating purposes in these areas, addressing energy needs while reducing reliance on traditional
fuels like wood or charcoal.

Government Initiatives and Incentives: Many governments worldwide are implementing policies and providing
incentives to promote the use of renewable energy sources. Biomass briquettes, being a sustainable fuel option, align
with these initiatives. Governments may offer subsidies, tax benefits, or favorable regulations to encourage the
production and consumption of biomass briquettes. These supportive measures contribute to the market potential and
attractiveness of biomass briquettes for both producers and consumers.

International Market Opportunities: The market potential for biomass briquettes extends beyond domestic
boundaries. Countries that lack sufficient domestic biomass resources may rely on imports to meet their renewable
energy targets. Export opportunities exist for biomass briquette manufacturers to supply international markets where
biomass resources are scarce but demand for sustainable energy remains high.

Objectives:
The objectives of the project are as follows:
To produce high-quality biomass briquettes and pallets for domestic and industrial use in India.
To create job opportunities for the local community.
To contribute to the reduction of greenhouse gas emissions by promoting the use of renewable energy sources.
To generate profit for the investors.
Why Biomass Brequettes?

• High calorific Value- 3400-4000 kcal/kg

• Low ash content- 6-10%
• Lower moisture- 3-10%
• Cost effective- cheaper than coal.
• Easy handling
• Low pollution- Less Sulphur
• Longer buring duration.
• Wastage/loss- 8-10%
1,00,000 TONS
BIOMASS BRIQUETTES REQUIRED PER DAY

8000 TONS
CURRENT CAPACITY

BY INDIAN POWER MINISTRY

RAW MATERIAL REQUIREMENT

Mustard husk and Mustrad Straw

Rice husk

Groundnut shell

Saw dust

Tur/chana husk

Sugarcane Bagasse/trash.
Biomass Brequettes Using Industries
• Textile mills
• Brick kiln
• Food industry
• Leather industry
• Dyeing house
• Chemical plants
• Thermal plants
• Food processing units
• Rubber industry
• Pharma industry
• Paper mills
 INVESTMENT REQUIRED FOR STANDARD 2 TONS/HR
CAPACITY

LAND CIVIL Plant/machine Working cap

0.5-1 ACRE 550-650 Sq.m 75-80 lacs 60-70 lacs

OWNED / RENTED Cost 50-55 lacs Briquettes making setup For 30 days

Total

Own fund 25% - 50 lacs

1.85- 2.00 cr
Approx value except land Bank loan 75% - 1.50 cr.
 Manufacturing Process

CUTTING AND
SHREDDING/ BRIQUETTIN
DISPATCH
GRINDING G

MIXING
WITH Drying
BINDER
 Machinery Requirement
Sr. No. Name of Machine & it Use Price
Crusher/Cutter machine
This machine cuts and shreds the raw materials such as agricultural and forestry
1. waste into small pieces to facilitate processing. 50K – 2 Lakh
Flash Dryer
It removes moisture from the raw materials by exposing them to hot air. This
process reduces the moisture content and helps to improve the quality of the
2. briquettes and pallets. 1.5 Lakh – 5 Lakh
Briquetting Machine:
This machine that compresses the dried raw materials into compact briquettes
3. using high pressure and heat. 7 Lakh – 20 Lakh
Palletizer Machine:
This machine that forms the briquettes into pallets by pressing them under high
4. pressure. 2 Lakh – 7 Lakh

Cooling machine:
This machine that cools down the briquettes and pallets to room temperature
5. after the compression process. 1 Lakh – 4 Lakh
Packaging machine:
This machine that packs the briquettes and pallets into bags or boxes for storage
6. and transportation. 1 Lakh – 5 Lakh
 Revenue & Profits in Biomass Briquette Manufacturing
Firstly, we will calculate here production cost for 1kg of biomass briquettes.

In cost of production, we included –

Avg. Selling
Raw material (sawdust, agriculture waste) = Rs 3 Price; 5.7
Other Overhead expenses = Rs .75 RAW MATERIAL ;
GST 5% =0.60 paise 3; 21%
Total cost of production will come INR 4.30 – INR 4.35
Average Costing= Rs 4.30 = Rs 4300/Ton
Consider, Production capacity of plant is 10 ton/day OVERHEAD
let’s assume that the plant produces 300 tons of biomass briquettes per EXPENSES;
month, with a production cost of INR 4.30 per kg, and the selling price 0.75; 5%
of the briquettes is INR 5.70 – INR 6 per kg.

The revenue generated from the sale of biomass briquettes will be = 300,000 kg x INR 5.70 per kg = GST; 0.6; 4%
INR 17,10,000 per month.
The total production cost for 300,000 kg of biomass briquettes will be = 300,000 kg x INR 4.30 per kg
= INR 12,90,000 per month.
The monthly profit for the plant can be calculated as follows:
 Profit = Total Revenue – Total Production Cost
 Profit = INR 17,10,000 – INR 12,90,000 Avg. Production cost; 4.3
 Profit = INR 4,20,000 per month
 Average profit will be 20% – 25%
 Standard price
Average price Average cost
Rs. 5700/- per ton 4300/- per ton

Gross margin Net margin

Rs. 1400/- per ton Rs. 1000/- per ton
(approx 25%) (approx 15%)

Pay back period 3-4 years

 Agriculture infrastructure fund
Easy bank
Interest subsidy CGTMSE finance within 60
@ 3% for 7 years GUARANTEE days
on term loan upto COVER (No
2.00 cr collateral security
needed)
MNRE ( CENTRAL FINANCIAL ASSISTANCE)
9.00 LACS PER MT/HR PRODUCTION CAPACITY. (MAXIMUM UPTO
45.00 LACS.)
NEED TO TAKE IPA BEFORE COMMISSIONING THE PROJECT.
 State level MSME specific subsidy
and incentive
• Stamp duty refund on land buying.
• CLU fee refund.
• State capital subsidy on fixed capital
expenditure (Building and Plant).
• Electric duty exemption
• Employment generation subsidy
• State interest Subsidy
• State GST refund
 CPCB subsidy
• One time grant for set up pellet unit from the
uses of paddy straw. (Notified on 14th oct
2022).
• Apply for frist come sirst serve basis.
• Rs. 14.00 lacs per ton per hr production
capacity. (maximum upto 70 lacs)
• Unit should not avail any financial assistance
in any other central goct. Scheme.
 PMEGP
PROJECT COST UPTO 50.00 LACS (A SMALL PROJECT)

CAPITAL SUBSIDY UPTO 25% TO 35% ON TOTAL PROJECT COST

INCLUDING WORKING CAPITAL.
 Income Tax exemption
Under section 80JJA of the Income Tax Act, 100% of the profit from the
biomass briquettes business is exempt for 5 years from the year of
commencement of business
.
 Biomass Brequettes machine manufacturers
• ECOSTAN INDIA PVT LTD- LUDHIANA, PUNJAB

• JAY KHODIYAR GROUP – RAJKOT , GUJARAT.

• SATYAJIT RENEWABLE ENGINEERING PVT LTD. – RAJKOT, GUJARAT.

• RONAK ENGINNERING – RAJKOT, GUJARAT.

 Conclusion
Biomass Briquette business is a good opportunities, it is important
to be aware of the associated risks. Market fluctuations, supply
chain challenges, competition, and technological advancements
are some of the key risks that need to be carefully managed. By
conducting thorough market research, developing a solid business
plan, maintaining reliable supply chains, and staying up-to-date
with industry trends, the risks can be mitigated. A proactive
approach to risk management, coupled with a focus on
sustainability and environmental compliance, can help ensure the
long-term success and profitability of the biomass briquette
business.