India Pushes Biomass for Green Industrial Heat, Supply Chain Hurdles Cloud MSME Transition
As India steps up efforts to decarbonise industrial heat, biomass-based energy is emerging as a key solution, especially for micro, small and medium enterprises (MSMEs). However, experts and policymakers warn that the biggest challenge lies not in technology, but in securing a steady and reliable supply of bioenergy raw materials.
Industrial heat is among the hardest segments of India energy system to clean up. MSMEs, which contribute nearly one-third of the country manufacturing output, rely heavily on coal, furnace oil and petcoke for heat and steam. This dependence locks them into high emissions and exposes them to fluctuating fuel prices. To break this cycle, the government is increasingly looking at biomass as a cleaner and locally available alternative.
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