Abstract
This whitepaper examines the technical and economic feasibility of replacing coal with biomass pellets in industrial thermal applications across India. We analyze current adoption rates, policy incentives, and project a 40% market penetration of biomass fuels in select manufacturing sectors by 2030.
Key Findings
- Biomass pellets can replace up to 97% of coal consumption in compatible boiler systems.
- Net fuel cost savings of 12–18% when factoring in carbon credit monetization.
- SOx/NOx emission reduction of 60–80% compared to coal combustion.
- Average payback period for fuel switching: 8–14 months.
Market Landscape
India's biomass pellet production capacity is projected to exceed 50 million tonnes annually by 2028, driven by government mandates for co-firing and direct industrial adoption.
Policy Drivers
The National Biomass Mission, state-level renewable energy certificates, and tightening emission norms under the National Clean Air Programme are accelerating the coal-to-biomass transition.