Biomass Briquettes Manufacturing Plant Setup 2026 - Business Plan, Market Trends and ROI Analysis

The global energy landscape is undergoing transformation driven by the imperative to transition from fossil fuels to renewable, sustainable energy sources. At the forefront stands biomass briquettes-compressed eco-friendly blocks produced from agricultural and forestry wastes including rice husk, sawdust, bagasse, groundnut shells, and crop stalks. These materials undergo mechanical compaction producing uniform, dense briquettes without chemical binders, creating sustainable solid fuel with high calorific value and low ash and emissions. Biomass briquettes serve as viable substitutes for coal, firewood, and lignite across industrial boilers, furnaces, kilns, power plants, and heating systems delivering reliable energy output while supporting environmental objectives. Their use reduces agricultural waste, conserves forests, and promotes renewable energy adoption. Rising focus on renewable energy, increasing regulatory restrictions on fossil fuels, growing industrial demand for low-cost sustainable solid fuels, and strong policy support for waste-to-energy solutions are driving sustained market growth-establishing a biomass briquettes manufacturing plant as a strategically compelling investment opportunity.

Request for a Sample Report: https://www.imarcgroup.com/biomass-briquettes-manufacturing-plant-project-report/requestsample

Market Overview and Growth Potential

The global biomass briquettes market demonstrates robust growth. Valued at USD 1.14 Billion in 2025. According to IMARC Group estimates, the market is expected to reach USD 2.37 Billion by 2034, exhibiting 8.5% CAGR from 2026 to 2034-more than doubling over the forecast period. This expansion is driven by rising renewable energy focus, increasing fossil fuel restrictions, growing industrial demand for low-cost solid fuels, and strong waste-to-energy policy support.

According to FAOSTAT, global bioenergy production rose from 28 EJ in 1990 to 50 EJ in 2023, with consumption increasing from 24 EJ to 40 EJ. Solid biofuels dominated at 35 EJ representing 89% of total use. Governments worldwide introduce incentives, subsidies, and favorable policies promoting renewable energy, encouraging industries to switch from coal. Stricter regulations and coal restrictions compel industries to reduce emissions, making biomass briquettes attractive. Rising circular economy awareness and waste-to-energy solutions strengthen demand as agricultural residues convert into clean fuel. Industrial sectors including power generation, brick kilns, and heating increasingly adopt briquettes to achieve sustainability targets. Advances in briquetting technology enhance quality, efficiency, and usability.

Plant Capacity and Production Scale

The proposed facility is designed with annual capacity of 10,000-30,000 MT, enabling economies of scale in procurement, compaction, and distribution while maintaining flexibility for diverse feedstocks. This positions manufacturers to serve power generation, cement and brick kilns, textile and food processing, and heating systems, with expansion achievable through moderate incremental investment.

Financial Viability and Profitability Analysis

The biomass briquettes business demonstrates healthy profitability:

Gross Profit Margins: 25-35%

Net Profit Margins: 10-15%

These margins are supported by value-added conversion transforming low-cost agricultural waste into premium renewable fuel, stable industrial demand, strong government policy support through subsidies, waste utilization creating economic value, and lower emissions enabling compliance. The project offers compelling return on investment backed by proven briquetting technologies, expanding renewable mandates, localized sourcing minimizing transportation costs, and scalable production.

Operating Cost Structure

The operating expenditure structure is characterized by:

Raw Materials: 40-50% of total OpEx

Utilities: 25-35% of OpEx

Raw materials-agricultural waste including sawdust, rice husk, and bagasse-constitute significant cost. The fundamental advantage lies in utilizing waste materials often available at very low cost or free from agricultural processors seeking disposal solutions. Establishing reliable collection networks and securing long-term supply agreements are essential. Utility costs encompass electricity for dryers, crushers, hammer mills, briquetting presses, and cooling conveyors. Additional expenses include labor, maintenance, quality testing, transportation, packaging, depreciation, and compliance. Energy-efficient drying systems and optimized moisture management significantly reduce costs.

Buy Now: https://www.imarcgroup.com/checkout?id=13824&method=2175

Capital Investment Requirements

Establishing a plant requires strategic capital allocation:

Land and Site Development: Strategic proximity to agricultural waste sources including rice mills, sawmills, and sugar factories minimizes costs and ensures reliable supply. The site requires access to industrial customers, reliable power, adequate water, and sufficient land for storage, processing, warehousing, and expansion.

Machinery and Equipment: The largest allocation covers specialized equipment:

• Dryers: Reducing biomass moisture to 8-12% optimal for effective briquetting
• Crushers: Primary size reduction equipment breaking down large feedstocks
• Hammer Mills: Secondary reduction pulverizing biomass to uniform particle sizes
• Briquetting Presses: High-pressure presses compacting biomass into dense briquettes without binders
• Cooling Conveyors: Post-production cooling systems reducing temperature to ambient conditions
• Packaging Systems: Automated equipment weighing, bagging, and sealing finished products

Civil Works and Other Costs: Processing halls, biomass storage with moisture protection, warehousing, and quality control facilities. Pre-operative costs include engineering, commissioning, training, permits, working capital, and contingency provisions.

Major Applications and Market Segments

Industrial Boilers and Furnaces: Reliable solid fuel generating steam and process heat with lower emissions than coal.

Power Generation Units: Supporting renewable and captive power generation, enabling industries to meet renewable mandates.

Brick and Cement Kilns: Providing stable heat output with lower emissions for brick firing and cement production.

Food Processing and Textile Units: Thermal energy for drying, cooking, and processing, replacing conventional fuels.

Why Invest in Biomass Briquettes Manufacturing?

Shift Toward Renewable Energy: Rising fuel costs, emission norms, and mandates push industries to adopt biomass-based fuels as cost-effective alternatives.

Waste Utilization: Agricultural and forestry residues convert into value-added energy products, creating economic value from waste.

Lower Emissions: Briquettes generate less smoke, sulfur, and ash than coal, enabling facilities to meet air quality regulations.

Stable Industrial Demand: Continuous requirements from energy-intensive industries ensure consistent offtake and stable revenue.

Scalable Production Model: Capacity expansion requires moderate investment in briquetting equipment and localized raw material sourcing.

Ask an Analyst: https://www.imarcgroup.com/request?type=report&id=13824&flag=C

Industry Leadership

Leading manufacturers include companies serving industrial energy markets. Key players include:

• VOTECS
• RUF US, Inc
• C.F. Nielsen A/S
• ECOSTAN
• Gattuwala
• Jaykhodiyar
• MaxTon Industrial Co., Ltd.
• Radhe Industrial Corporation
• GROSS Apparatebau GmbH
• WEIMA

These companies serve power generation, cement kilns, textile and food processing, chemical plants, and heating facilities.

Recent Industry Developments

July 2025: The Goa Energy Development Agency initiated a project converting plantation waste into biomass briquettes at a Saligao plant producing 40 tons daily. The e-Indhan portal links panchayats with industries, facilitating efficient biomass collection and logistics.

April 2025: Madhya Pradesh launched a comprehensive biofuels program recommending biomass briquettes, bio-CNG, biodiesel, and biomass power. The initiative provides financial incentives, infrastructure assistance, and supply chain development to transform agricultural waste into renewable energy.

Conclusion

The biomass briquettes sector presents a strategically positioned investment at the intersection of renewable energy, waste valorization, and industrial decarbonization. With margins of 25-35% gross and 10-15% net profit, 8.5% CAGR reaching USD 2.37 Billion by 2034, value-added conversion of low-cost waste into premium fuel, stable demand, strong policy support, waste utilization, lower emissions, and proven technologies, establishing a biomass briquettes plant offers compelling long-term returns. The combination of global bioenergy expanding from 28 EJ to 50 EJ, coal restrictions compelling fuel-switching, circular economy awareness, localized sourcing, scalable production, and advancing technologies creates an enduring value proposition for agricultural processors, energy companies, and sustainability-focused investors committed to the rapidly expanding renewable solid fuels market.

About IMARC Group

IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company excels in understanding its clients' business priorities and delivering tailored solutions that drive meaningful outcomes. We provide a comprehensive suite of market entry and expansion services. Our offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

Contact Us:

IMARC Group
134 N 4th St. Brooklyn, NY 11249, USA
Email: sales@imarcgroup.com
Tel No:(D) +91 120 433 0800
United States: (+1-201971-6302)

This release was published on openPR.