India’s Industrial Energy Dilemma
India’s industrial sector is undergoing rapid transformation, yet its reliance on fossil fuels—coal, diesel, and furnace oil—remains entrenched. While these conventional energy sources have long powered the nation’s growth, they now present mounting economic and environmental challenges. More critically, they stand at odds with India’s ambitious pledge to achieve net-zero emissions by 2070.
Amid this contradiction lies a compelling opportunity: the transition to biomass energy.
The Untapped Potential of Biomass
According to the Ministry of New and Renewable Energy (MNRE), India generates over 500 million metric tons of agricultural residue annually, with at least 120 million metric tons surplus and available for energy use. Yet, much of this biomass is either wasted or burned openly, exacerbating air pollution and carbon emissions.
The case for biomass is robust. Processed as briquettes, pellets, or in loose form, biomass can efficiently fuel industrial boilers, matching—or even surpassing—the performance of fossil fuels. Key advantages include:
– 60–70% lower CO₂ emissions, as validated by the Indian Institute of Science (IISc).
– Up to 25% operational cost savings compared to furnace oil-based systems (TERI estimates).
– Reduced particulate matter and sulphur dioxide emissions, aiding compliance with environmental norms.
– Enhanced ESG credentials, including eligibility for carbon credits and improved sustainability ratings.
Barriers to Adoption
Despite these benefits, biomass adoption in Indian industries remains sluggish. The primary obstacles include:
- Fragmented supply chains: Unorganized sourcing leads to inconsistent fuel quality and availability.
- Performance misconceptions: Many industries remain unaware that optimized biomass systems can deliver steam-to-fuel ratios comparable to fossil fuels.
- Regulatory complexity: Navigating pollution control norms, factory acts, and local licenses remains a challenge without expert support.
- Skill gaps: Few companies possess the in-house expertise to manage biomass combustion, logistics, or boiler retrofitting.
The Way Forward
To accelerate India’s green energy transition, the industrial sector requires:
– Standardized biomass fuel quality and calorific value benchmarks.
– Reliable, long-term sourcing models to ensure year-round supply.
– Streamlined policies and faster environmental clearances.
– Greater awareness of retrofit solutions and financing models like BOOT (Build, Own, Operate, Transfer).
Crucially, industries must recognize energy not just as an operational cost, but as a strategic lever for profitability, compliance, and climate action.
Insights from NJ Renewable Energy
At NJ Renewable Energy Pvt. Ltd., we have spent over two decades partnering with industries—from pharmaceuticals to automotive—to facilitate their shift to biomass. Our approach goes beyond fuel supply; we provide end-to-end energy solutions, including manufacturing, steam supply, and compliance management.
While the transition demands effort, the long-term benefits—cost savings, sustainability gains, and regulatory alignment—make it one of the most impactful decisions an industrial player can undertake.
The Bottom Line
India’s net-zero ambitions hinge on decarbonizing its industrial base. Biomass offers a locally available, renewable, and cost-competitive alternative that aligns with both rural economic growth and waste management objectives.
The shift from fossil fuels to biomass doesn’t require reinvention—just commitment, guidance, and execution. The time to act is now.
Dhruvil Goradia is the Director of NJ Renewable Energy Pvt. Ltd., a pioneer in sustainable energy solutions for India’s industrial sector.