Bioenergy Emerges as Game-Changer for Industrial Decarbonisation: Centre Calls MSMEs to Lead India’s Green Heat Revolution

The report lays out a technology-driven, sector-specific roadmap to replace fossil-fuel-based industrial heat with clean, renewable biomass solutions.

India’s clean energy transition is entering a decisive new phase, with bioenergy positioned as a breakthrough solution for decarbonising industrial process heat—one of the hardest-to-abate segments of the economy. Addressing a national workshop on “Introduction and Adoption of Biomass for Green Steam and Heat Applications in MSMEs”, Union Minister of State for New and Renewable Energy and Power today underscored the transformative role of biomass-based technologies in reshaping India’s MSME energy landscape.

The workshop, organised by the Ministry of New and Renewable Energy (MNRE) in collaboration with the German Agency for International Cooperation (GIZ) and Grant Thornton Bharat, also marked the release of a landmark report titled “Decarbonizing MSMEs: Use of Biomass for Green Steam and Heat Application.” The report lays out a technology-driven, sector-specific roadmap to replace fossil-fuel-based industrial heat with clean, renewable biomass solutions.

From Niche to National Priority

The Minister said that under the leadership of Prime Minister Narendra Modi, bioenergy has rapidly evolved from a peripheral renewable option to a strategic pillar of India’s clean energy and climate strategy. While renewable power generation has seen exponential growth, he noted that the next frontier lies in industrial heat and steam, which accounts for a substantial share of emissions but has so far seen limited innovation.

“India’s MSMEs—responsible for nearly one-third of manufacturing output and employing millions—continue to rely heavily on coal, furnace oil and pet coke for process heat. This is precisely where bioenergy-based green steam and heat can deliver immediate, scalable and India-specific impact,” the Minister said.

Innovation Rooted in India’s Waste-to-Value Potential

Highlighting the innovation advantage, the Minister said that biomass-based solutions uniquely align with India’s resource realities. Agricultural residue, animal waste and municipal solid waste—often treated as environmental liabilities—can be converted into high-efficiency thermal energy, reducing emissions while generating new income streams for farmers, rural entrepreneurs and waste aggregators.

He pointed to the Government’s integrated policy ecosystem—spanning the National Bioenergy Programme, SATAT, GOBARdhan and linkages with the National Green Hydrogen Mission—which supports biomass briquettes and pellets, non-bagasse cogeneration, decentralised industrial applications and emerging energy service business models tailored for MSMEs.

A Data-Driven Blueprint for Industry

Calling the newly released report a “critical playbook for industrial decarbonisation,” the Minister said it offers data-backed insights into how sectors such as textiles, food processing, chemicals, foundries and pharmaceuticals can transition to biomass-based green heat without compromising reliability or cost competitiveness.

The report identifies key market and policy enablers, including biomass deployment obligations, standardised steam supply agreements, biomass exchanges and stronger supply-chain coordination, creating a foundation for scale and investor confidence. It is expected to guide policymakers, technology providers, financiers and early adopters alike.

Call to Action: MSMEs as First Movers

Stressing that technology alone cannot drive change, the Minister called for deep collaboration across the value chain—from farmers and FPOs supplying biomass to boiler manufacturers, logistics providers, energy service companies, financiers and regulators. He emphasised that MSMEs need assurance on fuel availability, pricing stability, operational performance and long-term policy support.

“Bioenergy embodies the spirit of Sabka Saath, Sabka Vikas. The tools, technologies and policy signals are now in place. The moment is ripe for MSMEs to become early adopters and leaders of India’s green heat transition,” he said, urging industry to convert intent into action.

Global Collaboration and Technology Upscaling

Secretary, MNRE, Shri Santosh Kumar Sarangi, highlighted that biomass solutions—from municipal solid waste-to-energy and compressed biogas to decentralised rural biogas plants—have nationwide applicability and strong livelihood linkages. He noted that the report demonstrates the adaptability of biomass-based heat solutions across both large-scale and decentralised industrial settings.

Emphasising international cooperation, particularly with Germany, the Secretary called for greater collaboration on advanced boiler technologies, multi-fuel systems and R&D, enabling year-round fuel availability and cost-efficient operations for MSMEs. He encouraged MNRE’s scientific community and industry stakeholders to accelerate technology partnerships and pilots.

A Platform for Scaling Climate-Tech Innovation

The workshop brought together senior MNRE officials, representatives from the German Embassy and GIZ, MSMEs, technology providers, financial institutions, State Governments and knowledge partners—signalling growing momentum around biomass-based industrial decarbonisation.

As India charts its path towards net-zero, bioenergy-driven green steam and heat solutions are emerging as a high-impact climate-tech opportunity, with MSMEs at the centre of this transformation.