Biomass pellets are compressed organic materials made from agricultural residues like rice husk, wheat straw, sugarcane bagasse, and wood waste. The manufacturing process involves collecting the raw material, drying it to reduce moisture content (typically below 15%), grinding it into fine particles, and then compressing it under high pressure through a pelletizing machine. The natural lignin in the biomass acts as a binding agent, creating dense, uniform pellets without any chemical additives. These pellets typically have a diameter of 6-8mm and length of 10-30mm, with a calorific value of 3,500-4,500 kcal/kg.

Biomass pellet prices in India vary by state, quality, and raw material. As of 2024, the average price ranges from ₹10,000 to ₹13,000 per ton. Punjab and Haryana typically have prices between ₹12,000-₹12,850 per ton due to high quality and consistent supply. Southern states like Tamil Nadu and Karnataka range from ₹11,000-₹11,800 per ton. Prices are influenced by factors including raw material availability, production costs, transportation distance, moisture content, ash content, and seasonal demand fluctuations. Premium quality pellets with lower ash content (below 3%) and higher calorific value command prices at the upper end of the range.

Biomass pellets offer significant advantages over coal. While coal costs around ₹8,000-₹10,000 per ton, pellets cost ₹10,000-₹13,000 per ton. However, pellets provide better value due to: (1) Higher combustion efficiency (85-90% vs coal's 70-75%), meaning less fuel is needed for the same energy output. (2) Lower maintenance costs - pellets produce significantly less ash (1-3% vs coal's 30-40%), reducing cleaning and disposal expenses. (3) Environmental compliance - pellets help industries meet emission norms, avoiding potential fines. (4) Government incentives and subsidies for renewable energy adoption. (5) Stable long-term pricing compared to volatile coal markets. Overall, while the upfront cost is slightly higher, the total cost of ownership makes pellets more economical.

Biomass pellets are used across diverse industries: (1) Power Generation - Thermal power plants use pellets as a renewable fuel alternative, with many converting coal-based units to biomass. (2) Cement Manufacturing - Used in kilns for clinker production, offering consistent heat and lower emissions. (3) Steel and Metal Industries - Employed in furnaces and heating processes. (4) Textile Industry - Boilers for steam generation in dyeing and processing. (5) Food Processing - Drying, heating, and steam production in dairy, sugar, and rice mills. (6) Chemical Industry - Process heating and steam generation. (7) Hospitality Sector - Hotels and restaurants use pellets for cooking and heating. (8) Residential Heating - Growing use in pellet stoves for home heating in cold regions. The versatility and clean burning nature of pellets make them suitable for any application requiring thermal energy.

Replacing crop burning with biomass pelletization delivers massive environmental benefits: (1) Air Quality Improvement - Eliminates the severe air pollution caused by burning agricultural residue, which contributes to over 40% of Delhi-NCR's winter pollution. Crop burning releases harmful PM2.5, PM10, carbon monoxide, and carcinogenic compounds. (2) Carbon Neutrality - Pellets are carbon-neutral as they release only the CO₂ absorbed during plant growth, unlike fossil fuels that add new carbon to the atmosphere. (3) Reduced Greenhouse Gases - Prevents methane emissions from decomposing crop waste in fields. (4) Soil Health - Removes excess straw that can harbor pests and diseases. (5) Circular Economy - Converts waste into valuable energy, creating a sustainable agricultural ecosystem. (6) Health Benefits - Reduces respiratory diseases, especially during harvest seasons in Punjab, Haryana, and Delhi-NCR. This transition can prevent thousands of premature deaths annually while generating income for farmers.