Biomass co-firing, the practice of blending biomass pellets with coal in thermal power plant boilers, is governed by a Ministry of Power policy under the SAMARTH Mission. The obligation sits with the power plants, not with the companies that sell pellets. This article summarises the current position as of October 2026. Policy documents are revised from time to time, so confirm details with the issuing authority before you rely on them.
The Current Policy
The Ministry of Power issued a Comprehensive Policy on 7 November 2025 (letter F.No.11/86/2017-Th.II), which supersedes the earlier 2021 policy and its 2023 modification. Under it, coal-based thermal power plants are required to use a 5% blend, by weight, of biomass pellets (and/or torrefied charcoal made from municipal solid waste) from FY 2025-26. Plants in the National Capital Region (NCR) are required to use 5% biomass pellets plus an additional 2%, which can be pellets and/or municipal solid waste charcoal, and at least 50% of the pellet raw material in the NCR must be paddy straw or other crop residue sourced from the NCR and adjoining areas. Earlier versions of the policy described a phased rise in the blend; those figures should not be read as the current requirement for all plants.
Pellets may be non-torrefied, semi-torrefied or torrefied, depending on what the plant’s boiler manufacturer confirms is suitable for the unit.
Who Is Obligated
The co-firing obligation applies to thermal power plants. Separately, the Environment (Utilisation of Crop Residue by Thermal Power Plants) Rules, 2023, issued by the Ministry of Environment, Forest and Climate Change, apply to the NCR and adjoining areas. Under those rules a plant that falls short of the required crop-residue pellet or briquette use can be charged Environmental Compensation by the Commission for Air Quality Management (CAQM), per unit of electricity. A fuel supplier is not itself obligated and does not hold a compliance or approval status under the policy. The SAMARTH portal offers a voluntary vendor listing, which is a registry rather than an approval.
Fuel Specifications Are Set by the Plant
Each power plant decides its own fuel specification, based on its boiler, handling system and the policy guidance. Ministry of Power benchmark notifications for non-torrefied agro pellets have indicated moisture below 14% and GCV in the range of 2800 to 3400 Kcal/kg. Check the SAMARTH portal and the plant’s own tender for the current specification, including ash. Torrefied and semi-torrefied pellets are specified differently.
| Parameter | Official benchmark, non-torrefied agro pellets | BBI biomass pellets (BBI specification) |
|---|---|---|
| GCV | 2800 to 3400 Kcal/kg | 3800 to 4200 Kcal/kg |
| Moisture | Below 14% | Below 10% |
| Ash | Set by each plant’s tender; check SAMARTH | Below 10% (typically 2 to 8%, by feedstock) |
BBI’s specification is confirmed by the batch lab report, available on request. It is our own specification and is not a government certification. Our pellets can be offered to power plants against their own fuel specification, and the plant decides whether a given batch meets it.
Why Quality and Supply Matter to a Plant
A power plant that blends 5% biomass by weight needs steady pellet supply across the year. Agricultural residue is seasonal, so a reliable supplier plans raw material purchase and storage ahead of the monsoon, and delivers pellets that arrive dry and with few fines. Plants evaluating a supplier typically ask for batch lab reports, moisture and fines data, and storage details.
Support for Manufacturing Capacity
The Ministry of New and Renewable Energy’s National Bioenergy Programme provides Central Financial Assistance to briquette and pellet manufacturing plants. This is support for plant builders, not for fuel buyers, and MNRE does not certify fuel sellers. The programme period and its terms should be confirmed on the MNRE website.
Frequently Asked Questions
Is the co-firing requirement 7% for all plants?
No. The 7 November 2025 policy sets a 5% blend by weight from FY 2025-26, with an additional 2% for plants in the NCR.
Is BBI approved or compliant under the co-firing policy?
No such supplier approval exists. The obligation is on the power plant. We can offer pellets against a plant’s own specification and provide a batch lab report.
Do industrial boilers outside power plants have a co-firing requirement?
No. The co-firing policy applies to thermal power plants. Industrial buyers choose biomass on cost, availability and their own sustainability goals.
If you buy for a power plant and would like to compare a batch report against your specification, contact our team.
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