Co-Firing Biomass Pellets: A Game-Changer for India’s Coal-Heavy Power Sector

by Servoday Group

As India confronts the dual challenge of meeting its skyrocketing energy demands and cutting down carbon emissions, a critical opportunity has emerged for biomass pellet manufacturers — particularly in the area of co-firing biomass with coal in thermal power plants. This approach could serve as a pragmatic, scalable, and economically viable strategy for decarbonizing the country’s power sector while leveraging existing infrastructure.

A recent article on the BBC (15 July 2025) highlights the harsh reality: India, the world’s third-largest carbon emitter, cannot afford to abandon coal overnight. Thermal power plants continue to supply over 70% of the country’s electricity, and with peak demands doubling by 2030, coal remains central to grid stability. However, the government and energy regulators are now seriously exploring “cleaner coal” alternatives, and one of the most promising among them is biomass co-firing.

This is where the role of biomass pellet manufacturers becomes critical — and the timing has never been better. The demand for biomass pellets as a substitute fuel in coal-fired power plants is poised to rise dramatically as India pushes toward its goal of reducing emissions intensity by 45% by 2030.


Co-Firing: A Bridge to Decarbonization

Co-firing involves blending a percentage of biomass fuel — such as wood pellets, agri-residue pellets, or torrefied biomass — with coal during combustion. Even a modest 5–10% co-firing ratio can significantly reduce the carbon footprint of a power plant. Notably, this strategy requires minimal retrofit investment at most existing thermal stations, making it a cost-effective intermediate step toward long-term decarbonization.


In cities like Delhi, this model has already seen some success, where thermal plants began using agricultural waste-based biomass pellets to cut emissions and reduce stubble burning in nearby farmlands.


SERVODAY Group: Turnkey Pellet Plant Solutions

For biomass pellet manufacturers or entrepreneurs looking to enter this fast-growing sector, SERVODAY Group offers a complete, turnkey solution for setting up wood and biomass pellet plants. From material preparation and drying systems to pellet mills, cooling, and bagging — SERVODAY provides end-to-end engineering, procurement, and commissioning (EPC) services tailored to Indian feedstocks like paddy straw, cotton stalks, sugarcane trash, mustard husk, and sawdust.

With decades of experience in renewable energy infrastructure and a robust portfolio of custom-designed pellet plants, SERVODAY ensures high production reliability, low operating costs, and compliance with stringent emission and ash content standards required for co-firing in utility-scale power plants.


👉 To inquire about purchasing a biomass pellet plant, visit

https://woodpellet.in/bot/plant-inquiry


Unlocking a National Supply Chain

The government has already mandated biomass co-firing in several National Thermal Power Corporation (NTPC) plants, and regulatory mechanisms are being developed to incentivize broader adoption. This opens the door to building regionally distributed pellet manufacturing hubs, particularly in biomass-rich states like Punjab, Haryana, Uttar Pradesh, Gujarat, Tamil Nadu, and Maharashtra.


For local industries, farmers, and energy entrepreneurs, the opportunity lies in converting agri-waste — often burned in the open — into a high-value fuel that can be sold to coal power stations. With the backing of strong engineering partners like SERVODAY Group, the barriers to entry are low and the market potential is high.


The Road Ahead

While questions remain around scaling, storage, and logistics, co-firing biomass pellets is already gaining traction as a policy-backed, technically viable pathway for emissions reduction in India’s power sector. For manufacturers, this translates to a generational business opportunity to be part of India's low-carbon transition.


With the government encouraging industrial-scale biomass utilization and a growing emphasis on decentralized pellet production, now is the time to invest in pellet plant infrastructure. SERVODAY Group stands ready to support this transition with cutting-edge technology, local expertise, and a commitment to sustainable energy.


🔗 Get started today: Inquire about your own pellet plant here