❓ What is India’s current biomass pellet production, number of manufacturing units, daily capacity, and actual demand?
India’s biomass pellet production capacity, as of 2023, stands at approximately 7,000 tonnes per day, equating to an annual capacity of 2.5 million tonnes. This production primarily utilizes agricultural residues such as rice husks, wheat straw, and other crop residues, converting them into biomass pellets for renewable energy generation.
Driven by government policies and increasing demand for clean energy, the Ministry of Power has mandated that coal-based thermal power plants co-fire biomass pellets, starting with a 5% blend from October 2022, increasing to 7% subsequently. To meet this requirement, India needs around 35 million tonnes of biomass pellets annually, translating to approximately 96,000 tonnes per day.
Currently, India has around 217 operational biomass pellet manufacturing units, collectively producing 7,000 tonnes per day. On average, each unit manufactures 32 tonnes per day, though some larger manufacturers have capacities ranging from 200 to 800 tonnes per day. Despite this production, the massive supply-demand gap presents a significant investment opportunity in the biomass pellet industry.
To encourage growth, the Indian government has introduced financial incentives under the Ministry of New and Renewable Energy (MNRE). A Central Financial Assistance (CFA) grant of ₹9 lakh per metric ton per hour (MTPH) of production capacity is available, with a maximum subsidy of ₹45 lakh per plant. As of July 2023, 76 applications have been received for setting up new briquette and pellet manufacturing plants under this program.
Key Takeaways:
- Current Biomass Pellet Production: 7,000 tonnes per day (2.5 million tonnes per year)
- Actual Requirement: 96,000 tonnes per day (35 million tonnes per year)
- Number of Pellet Manufacturing Units: 217
- Average Daily Production Per Unit: 32 tonnes
- Government Incentives: ₹9 lakh per MTPH, max ₹45 lakh per plant
- Financial Support Applications Received: 76
- Growth Opportunity: Huge scope for new biomass pellet plants to bridge the supply-demand gap
For information and machinery details, please contact:
📞 Sanjay Masuria – +91 9427210483, +91 9427210484
📧 Email – [email protected]
🌐 Website – www.PelletIndia.com
🏢 Servoday Plants & Equipments Ltd, Jamnagar, Gujarat, India
