India sets first benchmark price for biomass pellets

1. India has set its first benchmark price for biomass pellets at 2.27 rupees per 1,000 kcal, approximately $0.027 per 1,000 kcal. This price applies to non-torrefied biomass pellets in northern India, excluding the national capital region.
2. The policy requires coal-based thermal power plants with bowl mills to use a minimum of 5% biomass blend from the 2024-25 fiscal year, increasing to 7% from 2025-26. Plants with ball and race mills are to co-fire the same percentages of torrefied biomass pellets within the same timeframe.
3. India has a surplus biomass supply of around 230 million tonnes per year, largely from agricultural residue, prompting considerations for potential biomass exports. The co-firing policy is set to last for 25 years or until the useful life of a power plant, whichever is earlier.

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