Biomass Pellet Manufacturing Business in India – Complete Guide
Biomass Pellet Manufacturing Business in India – Complete Guide (2026)
Introduction
India is undergoing a major energy transition. With rising coal prices, strict pollution norms, and strong government support for renewable energy, biomass pellets have emerged as one of the fastest-growing fuel businesses in India. Biomass pellets are solid cylindrical fuel made from agricultural waste such as rice husk, sawdust, bagasse, straw, bamboo, and Napier grass.
The biomass pellet manufacturing business in India is highly profitable, environmentally friendly, and supported by government policies such as NTPC biomass co-firing. Thermal power plants, food industries, textile mills, chemical factories, and commercial boilers are increasingly switching from coal to biomass pellets.
This complete guide explains everything you need to know about starting a biomass pellet manufacturing business in India, including investment, machinery, profit, raw materials, process, and government support.
What Are Biomass Pellets?
Biomass pellets are compressed solid fuel made from agricultural and forest waste. These pellets are produced using high-pressure pellet machines without adding chemicals.
Standard Pellet Specifications
| Parameter | Value |
|---|---|
| Diameter | 6 mm to 10 mm |
| Length | 10 mm to 30 mm |
| Moisture | 8% to 12% |
| GCV | 3200 to 4200 kcal/kg |
| Bulk Density | 600 to 700 kg/m³ |
Biomass pellets are used as an alternative to coal in industries.
Why Biomass Pellet Business Is Growing Fast in India
India produces more than 500 million tons of agricultural waste annually. Most of this waste is burned in open fields, causing pollution. Converting this waste into biomass pellets creates fuel and income.
Major Growth Reasons
1. Government Support
The Indian government has made biomass pellet use mandatory in thermal power plants. NTPC and other power plants purchase pellets in large quantities.
2. High Demand
Industries using boilers and furnaces prefer biomass pellets due to:
• Lower cost than coal
• Less pollution
• Renewable fuel
3. Export Opportunity
India exports biomass pellets to Europe, South Korea, and Middle East countries.
4. Pollution Control
Biomass pellets reduce carbon emissions and help industries comply with pollution norms.
Market Demand of Biomass Pellets in India
Major Pellet Buyers
• Thermal power plants
• Textile industries
• Food processing industries
• Chemical factories
• Pharmaceutical industries
• Paper mills
• Hotels and commercial kitchens
Pellet Selling Price in India (2026)
₹7,000 to ₹11,000 per ton depending on raw material and location.
Raw Materials Required for Biomass Pellet Manufacturing
India has abundant raw materials.
Major Raw Materials
| Raw Material | GCV | Availability |
|---|---|---|
| Rice Husk | 3000 kcal | Very High |
| Sawdust | 3800 kcal | High |
| Bagasse | 3200 kcal | High |
| Straw | 3000 kcal | Very High |
| Bamboo | 4000 kcal | Medium |
| Napier Grass | 4200 kcal | High |
Napier grass is one of the best raw materials.
Biomass Pellet Manufacturing Process
The pellet manufacturing process involves several steps.
Step 1: Raw Material Collection
Agricultural waste is collected from farms or industries.
Step 2: Size Reduction
Raw material is crushed using a hammer mill.
Output size: 3 mm to 5 mm
Step 3: Drying
Moisture is reduced to 10% using a rotary dryer.
Step 4: Pellet Making
Material is compressed using a pellet machine.
Step 5: Cooling
Pellets are cooled to room temperature.
Step 6: Packing
Pellets are packed in bags.
Machinery Required for Biomass Pellet Plant
Major machines required:
• Hammer Mill
• Rotary Dryer
• Pellet Machine
• Pellet Cooler
• Screw Conveyor
• Storage Hopper
Investment Required for Biomass Pellet Plant
Investment Based on Capacity
| Capacity | Investment |
|---|---|
| 500 kg/hr | ₹25 lakh to ₹40 lakh |
| 1 TPH | ₹50 lakh to ₹80 lakh |
| 2 TPH | ₹90 lakh to ₹1.5 crore |
| 5 TPH | ₹2 crore to ₹4 crore |
Land Requirement
Land required depends on capacity.
| Capacity | Land |
|---|---|
| 1 TPH | 5000 sq ft |
| 2 TPH | 10000 sq ft |
| 5 TPH | 20000 sq ft |
Electricity Requirement
| Capacity | Power |
|---|---|
| 1 TPH | 150 HP |
| 2 TPH | 300 HP |
| 5 TPH | 600 HP |
Manpower Requirement
| Capacity | Workers |
|---|---|
| 1 TPH | 5 |
| 2 TPH | 8 |
| 5 TPH | 15 |
Profit in Biomass Pellet Business
Example: 2 TPH Plant
Production per day = 40 tons
Selling price = ₹9000 per ton
Daily revenue = ₹3,60,000
Production cost = ₹2,40,000
Daily profit = ₹1,20,000
Monthly profit = ₹30 lakh approx
ROI (Return on Investment)
Investment = ₹1.2 crore
Monthly profit = ₹30 lakh
ROI period = 6 to 12 months
Government Subsidy for Biomass Pellet Plant
Government provides subsidy under:
• MNRE Scheme
• State subsidy
• MSME subsidy
Subsidy up to 20% to 40%
Advantages of Biomass Pellet Business
High Profit
Biomass pellet business offers excellent profit.
Huge Demand
Demand is increasing every year.
Easy Raw Material Availability
Raw material is easily available.
Export Opportunity
Export demand is very high.
Environment Friendly
Reduces pollution.
Challenges in Biomass Pellet Business
Raw Material Storage
Raw material must be stored properly.
Moisture Control
Moisture must be controlled.
Proper Machinery Selection
Good quality machinery is required.
How to Start Biomass Pellet Business in India
Step 1: Market Research
Step 2: Select location
Step 3: Select raw material
Step 4: Purchase machinery
Step 5: Install plant
Step 6: Start production
License Required
• GST Registration
• MSME Registration
• Pollution Certificate
• Factory License
Export Opportunity
India exports pellets to:
• Europe
• Korea
• Japan
Export price: ₹12,000 to ₹18,000 per ton
Future of Biomass Pellet Industry in India
India’s pellet demand is expected to reach 50 million tons by 2030.
Government policies and industrial demand will increase growth.
Biomass pellet business is one of the best renewable energy businesses.
Why Choose FABON Engineering Pvt Ltd
FABON Engineering Pvt Ltd, Nashik, is a leading manufacturer of biomass pellet plants.
FABON offers:
• Complete plant solution
• High efficiency machines
• After sales service
• Installation support
• Training support
Conclusion
Biomass pellet manufacturing business is one of the most profitable and future-ready businesses in India. With strong government support, huge industrial demand, and abundant raw material availability, entrepreneurs can earn excellent profit.
Investing in biomass pellet manufacturing not only generates income but also supports renewable energy and environmental protection.
Contact FABON Engineering Pvt Ltd
For complete biomass pellet plant setup:
Website: https://www.fabon.in
Call: +91-9370999191
Email: [email protected]
Pl forward brochure for biopellets industry
Kindly Contact +91 9370999191 / 9226339191 / 9226719191/ 9545359191…..Also Contact on : [email protected]