While domestic demand for biomass pellets in India is growing rapidly, a parallel export opportunity is emerging. Europe's REPowerEU initiative, Japan's FIT programme, and South Korea's RPS (Renewable Portfolio Standard) are creating significant demand for biomass pellets that domestic producers cannot fully meet. Indian manufacturers — particularly in Gujarat and Andhra Pradesh — are well-positioned to serve this export market.
Global Biomass Pellet Demand (2026)
Global biomass pellet trade reached approximately 35 million MT in 2025, with Europe consuming 75% of total traded volumes. Key import markets:
- EU (UK, Germany, Netherlands, Belgium, Denmark): 26 million MT/year for power generation and heating co-firing
- Japan: 6–8 million MT/year for FIT-eligible biomass power plants
- South Korea: 4–5 million MT/year for coal co-firing under RPS obligations
Current global supply is dominated by North American wood pellets (US, Canada) and Eastern European forest residue pellets. Indian agro-waste pellets offer competitive pricing but must meet stringent quality and sustainability certifications.
Key Certification Requirements for Export
ENplus Certification: The most widely recognized quality standard for industrial wood pellets (ENplus A1, A2, B). European buyers require ENplus or equivalent. BBI is exploring ENplus certification for export-grade production.
Sustainability Certification: EU Renewable Energy Directive (RED II) requires biomass imported for energy use to meet sustainability criteria — including land use change requirements and greenhouse gas savings thresholds. FSC or PEFC certification is needed for forest-derived feedstock; SBP (Sustainable Biomass Program) for agricultural residue pellets.
Japan FIT documentation: METI-approved sustainability declarations required for Japan FIT-eligible biomass. Uses a different framework than EU RED.
Export Pricing vs Domestic Pricing
Industrial biomass pellets (agro-residue, 4000+ Kcal/kg) trade at €120–€180/MT ($130–$195/MT) CIF Europe in 2026. At current exchange rates (₹89/USD), this is ₹11,600–₹17,400/MT — significantly above the domestic Indian ex-factory price of ₹8,000–₹11,000/MT. After freight (₹4,000–₹5,500/MT to European ports) and certification cost amortization, export margins for quality-certified Gujarat manufacturers can be 20–30% above domestic.
How Gujarat Manufacturers Can Start Exporting
- Achieve ENplus or SBP certification (typically 6–12 months, ₹5–₹15 lakh investment)
- Install automatic pellet quality testing equipment for batch certificates
- Establish relationship with a specialized biomass pellet trading company or ship broker
- Minimum container load: 20 MT (one 20-foot container), but commercial export starts at 500+ MT shipments
- Register with APEDA (Agricultural and Processed Food Products Export Development Authority) for agro-product exports
BBI is actively exploring export market entry. Contact us to discuss export supply partnership opportunities.