Global Biomass Briquette Fuel Market Size, Share, Growth Analysis Report By Feedstock (Sawdust Biomass Briquette, Biomass Pellet, Biomass Fuel Briquettes, Wood Biomass Briquette, White Coal Briquettes, Agriculture Waste Briquettes, Others), By Form (Pellets, Blocks), By Application (Power Generation, Heating Fuel, Cooking Fuel, Others) , By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2025-2034

Report Overview

The Global Biomass Briquette Fuel Market size is expected to be worth around USD 2002.7 Mn by 2034, from USD 962.7 Mn in 2024, growing at a CAGR of 7.6% during the forecast period from 2025 to 2034.

Biomass briquette fuel market is a renewable energy source produced from organic materials such as agricultural waste, forest residue, and industrial byproducts. This type of fuel is manufactured through the compression of biomass waste into a solid form, typically in the shape of logs, pellets, or briquettes, which are then used as a sustainable alternative to traditional fossil fuels in heating and power generation.

Several key factors are propelling the demand for biomass briquette fuel. First, stringent environmental regulations aimed at reducing carbon emissions have led industries to seek more eco-friendly energy sources.

For instance, the European Union’s Renewable Energy Directive sets a target for the EU to fulfill at least 32% of its total energy needs with renewables by 2030, directly influencing the adoption of biomass briquettes. Additionally, government incentives for biomass energy production, such as tax benefits and subsidies, have lowered the cost barriers, making biomass briquettes more financially attractive.

The future of the biomass briquette fuel industry looks promising, with several opportunities for expansion. Emerging markets in Asia and Africa, where rural communities heavily depend on wood and charcoal for cooking and heating, present significant potential for the adoption of biomass briquettes. Initiatives such as the ‘National Biomass Cookstoves Program’ in India aim to replace traditional cooking methods with biomass-based alternatives, thereby opening new avenues for market penetration.

Key Takeaways

• Biomass Briquette Fuel Market size is expected to be worth around USD 2002.7 Mn by 2034, from USD 962.7 Mn in 2024, growing at a CAGR of 7.6%.
• Sawdust Biomass Briquette held a dominant market position, capturing more than a 32.40% share.
• Pellets held a dominant market position in the biomass briquette fuel sector, capturing more than a 59.20% share.
• Power Generation segment held a dominant market position within the biomass briquette fuel industry, capturing more than a 49.40% share.
• Europe dominated the biomass briquette fuel market, capturing 38.40% of the global market share, valued at approximately $369.6 million.

By Feedstock

Sawdust Biomass Briquette Leads with a 32.40% Market Share

In 2024, Sawdust Biomass Briquette held a dominant market position, capturing more than a 32.40% share of the biomass briquette fuel market. This segment benefits significantly from the availability of raw materials and the cost-effectiveness of production. Sawdust, a byproduct of various woodworking processes including sawing, milling, and planing, is abundantly available and often disposed of as waste. Utilizing it as a primary feedstock for biomass briquettes not only offers a sustainable solution to waste management but also contributes to the production of a green energy source.

This has positioned sawdust biomass briquettes as a popular choice among industries looking to reduce their carbon footprint while ensuring economic viability. As businesses and consumers increasingly prioritize sustainability, the demand for sawdust biomass briquettes is expected to remain robust, underlining its significant market share.

By Form

Pellets Command a 59.20% Market Share in Biomass Briquette Fuel

In 2024, Pellets held a dominant market position in the biomass briquette fuel sector, capturing more than a 59.20% share. This form of biomass briquette has gained significant traction due to its high energy density and ease of use. Pellets are compact, which makes them easy to transport and store, reducing logistical costs and simplifying handling procedures across various industries.

Their uniform shape and size contribute to more consistent combustion properties, making them highly efficient for use in heating systems and industrial boilers. The robust demand for pellets is driven by their effectiveness in meeting the energy needs of both residential and commercial sectors while supporting sustainability goals. This efficiency and environmental friendliness ensure that pellets continue to be the preferred choice for consumers aiming to switch to renewable energy sources.

By Application

Power Generation Leads with 49.40% in Biomass Briquette Fuel Usage

In 2024, the Power Generation segment held a dominant market position within the biomass briquette fuel industry, capturing more than a 49.40% share. This significant market share is primarily due to the growing recognition of biomass briquettes as a sustainable and cost-effective alternative to traditional fossil fuels. Power plants utilize these briquettes to produce electricity while reducing carbon emissions, aligning with global efforts to combat climate change.

The high combustion efficiency of biomass briquettes, along with their relatively lower ash content compared to coal, makes them particularly attractive for power generation purposes. This segment’s dominance is supported by both environmental policies favoring renewable energy sources and the ongoing advancements in biomass conversion technologies, ensuring that power generation continues to be a major application area for biomass briquettes.

Key Market Segments

By Feedstock

• Sawdust Biomass Briquette
• Biomass Pellet
• Biomass Fuel Briquettes
• Wood Biomass Briquette
• White Coal Briquettes
• Agriculture Waste Briquettes
• Others

By Form

• Pellets
• Blocks

By Application

• Power Generation
• Heating Fuel
• Cooking Fuel
• Others

Drivers

Government Policies Propel Biomass Briquette Adoption

One of the major driving factors for the growth of the biomass briquette fuel market is the strong support from various government initiatives across the globe. These policies are designed to reduce carbon emissions and encourage the use of renewable energy sources, with biomass briquettes playing a crucial role due to their sustainability and low environmental impact.

For instance, the European Union’s Renewable Energy Directive (RED), which mandates that 20% of the EU’s energy needs must come from renewable sources by 2020, has been a significant driver. This directive not only encourages the use of renewable energy but also specifically supports the adoption of biomass as a key component in achieving these targets. As a result, there has been an increased shift towards biomass briquettes in power generation and heating applications within the EU.

Similarly, in the United States, the Biomass Research and Development Initiative (BRDI) works to advance the development of biomass briquette technology through funding and research efforts. The initiative aims to make biomass briquettes a more viable and efficient energy source, with the U.S. Department of Energy reporting that the initiative helps to improve the technologies required to convert non-food biomass materials into commercially viable, high-performance biofuels, bioproducts, and biopower.

Furthermore, countries like India have implemented schemes like the National Biomass Cookstoves Initiative (NBCI), which promotes the use of biomass briquettes among rural populations as a cleaner and more efficient cooking solution compared to traditional biomass sources like wood or agricultural waste. This not only helps in managing waste but also in providing a cleaner cooking medium, thus improving health outcomes and reducing deforestation.

Restraints

High Initial Investment Hinders Biomass Briquette Adoption

A significant restraining factor in the biomass briquette fuel market is the high initial investment required for setting up production facilities and purchasing briquetting machinery. This initial cost barrier can deter many potential entrants and limit the expansion of existing operations, particularly in regions where capital access is constrained.

Setting up a biomass briquetting plant involves substantial capital expenditure. The cost includes acquiring high-quality briquetting machines, establishing proper storage facilities for the raw materials and finished products, and ensuring compliance with environmental regulations. For instance, the installation of a medium-scale briquetting plant can cost upwards of $200,000, a figure that can escalate depending on the technology and scale chosen. This figure does not account for ongoing operational costs such as maintenance, labor, and energy consumption, which can further strain financial resources.

Moreover, the economic feasibility of producing biomass briquettes heavily depends on the availability and cost of raw materials, which can vary significantly by region. In areas where agricultural or wood residues are less abundant, the costs associated with gathering and transporting these materials can erode the economic benefits of switching to biomass briquettes.

Despite these challenges, some governments and international organizations are recognizing the potential economic and environmental benefits of biomass briquettes. Initiatives like subsidies for renewable energy technologies or grants for small and medium-sized enterprises can help alleviate some of the financial burden associated with the initial setup and operation of biomass briquette production facilities.

For example, the European Commission provides funding for renewable energy projects through its various financial instruments, which can include support for biomass briquetting initiatives as part of a broader strategy to enhance energy sustainability and reduce carbon emissions.

Opportunity

Expanding Industrial Adoption Unlocks Growth Potential for Biomass Briquette Fuel

One of the biggest growth opportunities for biomass briquette fuel market lies in its increasing adoption by industries seeking cleaner energy alternatives. As global industries work towards reducing their carbon footprint, biomass briquettes have emerged as a viable and sustainable solution for heat and power generation, replacing conventional fossil fuels like coal and diesel.

For example, the Food and Agriculture Organization (FAO) reports that the food processing industry alone accounts for nearly 30% of global energy consumption due to its high heating and drying requirements. Many food manufacturers are now switching to biomass briquettes as a way to meet sustainability goals while keeping energy costs in check. Large-scale food processing plants, breweries, and dairy operations require a continuous energy supply, and biomass briquettes provide a reliable and cost-effective alternative.

Additionally, government policies promoting the use of renewable energy in industries are accelerating this shift. The European Union’s Green Deal has set a goal to reduce greenhouse gas emissions by 55% by 2030, encouraging industries to transition towards cleaner energy sources. In India, the government offers financial incentives, including 20% capital subsidies for industries adopting biomass-based fuel, further driving demand for briquettes in industrial applications.

The cement and steel industries are also key sectors where biomass briquettes can make a difference. According to the International Energy Agency (IEA), the cement industry accounts for nearly 8% of global CO₂ emissions. With increasing pressure to adopt sustainable practices, many cement manufacturers are exploring biomass briquettes as an alternative to fossil fuels for kiln heating. This shift is expected to drive demand for biomass briquettes in industrial markets significantly.

Trends

Rise of Carbon Credit Trading Boosts Biomass Briquette Market

One of the latest trends shaping the biomass briquette fuel market is the growing role of carbon credit trading, which incentivizes industries to adopt low-emission fuels like biomass briquettes. As global pressure to cut carbon emissions increases, companies using biomass-based fuels can now earn carbon credits, which can be sold to other businesses struggling to meet their emission targets.

According to the World Bank’s 2023 Carbon Pricing Report, the carbon credit market was valued at over $100 billion, and demand is expected to surge as more companies seek sustainable energy alternatives. Biomass briquettes qualify as a low-carbon energy source because they are made from agricultural and forestry waste, reducing dependency on fossil fuels and cutting emissions significantly. By using biomass briquettes, industries can offset their carbon footprint and earn financial benefits through carbon credit programs.

Governments are also encouraging carbon trading as a way to promote clean energy adoption. The European Union Emissions Trading System (EU ETS) is one of the largest carbon markets, covering over 40% of Europe’s total emissions, and includes incentives for companies using biomass as a renewable fuel. Similarly, India launched its Carbon Market Initiative in 2023, allowing industries that reduce emissions through biofuels and biomass energy to trade carbon credits.

Many multinational companies, especially in sectors like food processing, cement, and power generation, are now integrating biomass briquettes into their energy mix to reduce emissions and take advantage of these financial incentives. With global carbon credit markets expanding rapidly, the demand for biomass briquettes is expected to rise significantly in the coming years.

Regional Analysis

Europe Leads the Biomass Briquette Fuel Market with 38.40% Share

In 2024, Europe dominated the biomass briquette fuel market, capturing 38.40% of the global market share, valued at approximately $369.6 million. The region’s leadership in the market is driven by strict environmental policies, ambitious renewable energy targets, and strong government incentives promoting sustainable fuel adoption.

The European Union’s Renewable Energy Directive (RED II) mandates that at least 32% of the EU’s total energy consumption must come from renewable sources by 2030, accelerating the demand for biomass briquettes in industrial and residential heating applications.

Countries like Germany, Sweden, and France are at the forefront of biomass energy adoption. Germany, Europe’s largest biomass energy consumer, generated over 50 TWh of bioenergy in 2023, with a significant portion coming from biomass briquettes.

Sweden, known for its advanced bioenergy sector, sources over 35% of its total energy from biofuels, including biomass briquettes, due to strong governmental incentives. Meanwhile, France is promoting biomass through its National Biomass Action Plan, which aims to reduce dependence on fossil fuels by increasing bioenergy use in industries and power generation.

The demand for biomass briquettes in Europe is further fueled by the EU Emissions Trading System (EU ETS), which financially incentivizes companies to switch to low-carbon fuels. As more industries and households shift toward renewable heating solutions, Europe is expected to maintain its dominance in the biomass briquette fuel market in the coming years.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

3E SAVERS INDIA LLP is a leading player in the biomass briquette fuel market, specializing in the production of eco-friendly biomass briquettes and pellets. The company focuses on sustainable fuel solutions, catering to industries such as power generation, manufacturing, and commercial heating. With a strong presence in India, 3E SAVERS benefits from abundant agricultural waste resources, ensuring cost-effective production. The company’s commitment to reducing carbon emissions aligns with government policies promoting renewable energy adoption.

Balcas Energy, headquartered in the UK, is one of Europe’s largest biomass fuel producers, supplying wood pellets for heating and power generation. The company manufactures over 250,000 tons of pellets annually, using sustainable forestry sources. With a strong foothold in the European market, Balcas Energy benefits from government incentives promoting biomass as a renewable energy source. The company’s advanced production facilities and efficient logistics network ensure consistent fuel supply to domestic and industrial users across the region.

BlueFire Renewables is a U.S.-based renewable energy company that develops and commercializes biomass-to-energy technologies. The company focuses on converting waste biomass into biofuels and high-energy biomass briquettes, reducing reliance on fossil fuels. BlueFire Renewables plays a key role in the bioenergy sector by integrating advanced technology for efficient biomass fuel production. Its projects align with U.S. government initiatives promoting clean energy, positioning it as a major contributor to sustainable biomass fuel solutions.

Top Key Players

• Appalachian Wood Pellets
• Balcas Energy
• Biomass Secure Power Inc.
• BlueFire Renewables
• Drax Biomass
• Enviva Partners
• Fram Renewable Fuels
• Graanul Invest Group
• Pfeifer Group
• Lignetics

Recent Developments

In 2024 Biomass Secure Power Inc., the company advanced its project in Natchitoches, Louisiana, aiming for an initial production capacity of 240,000 tons per year, with plans to scale up to one million tons annually.

Report Scope