Blog  ·  30 August 2026

India's Biomass Co-Firing Mandate: What the 7% Rule Requires

In brief

Summary

Every coal-based thermal power plant in India must now co-fire biomass at 7%, up from 5% in FY 2024–25, under a Ministry of Power policy revised in June 2023. Untreated agricultural-residue pellets can be co-fired at roughly 7–10% without modifying existing equipment; above that, moisture and poor grindability cause handling problems. Torrefied fuel behaves closer to coal, and NTPC has demonstrated co-firing of up to 20% using it.

5% became 7%

The Ministry of Power revised its biomass co-firing policy in June 2023. It mandated 5% co-firing from FY 2024–25, rising to 7% from FY 2025–26. The requirement applies to all coal-based thermal power plants in India.

For a plant operator this is an obligation rather than a target, and it converts directly into demand for a fuel that behaves enough like coal to move through existing handling and milling equipment without modification.

Why ordinary pellets run out of road

Untreated agricultural-residue pellets can be co-fired at roughly 7 to 10 percent without changing existing plant equipment. NTPC has been doing this since 2017.

Above that band the physics gets in the way. Raw biomass carries more moisture, has lower energy density and grinds poorly, which causes handling and milling problems in equipment designed for coal. The mills were specified for a brittle, dry, dense fuel; fibrous damp material does not behave like one.

Torrefaction is a thermal treatment at 200–350 °C in a low-oxygen environment. It drives off moisture and volatiles, leaving a fuel that is drier, more brittle and closer to coal in handling behaviour. NTPC pilot work has demonstrated co-firing of up to 20 percent using torrefied biomass.

Calorific value by feedstock

Torrefied fuel is often quoted as a single figure, which is misleading — the energy content depends substantially on what went in. These are the ranges measured across Keystone Energy's plant configurations:

FeedstockCalorific value (Kcal/kg)Typical source
Woody biomass3,700 – 6,000Forestry and wood residue
Rice straw biomass4,000 – 4,300Agricultural residue, Punjab and Haryana
Refuse Derived Fuel (RDF)3,800 – 4,000Segregated combustible municipal fraction
Municipal Solid Waste (MSW)3,700 – 4,000Mixed municipal waste
Undigested STP sludge3,500 – 3,800Sewage treatment plant residue

Woody biomass carries the widest range because feedstock moisture and species vary considerably. Sludge sits at the lower end: it arrives wet, and a larger share of the input energy goes into drying it.

Where the fuel comes from

Meeting the mandate at scale requires torrefaction capacity, and that capacity has to be built. Keystone Energy designs, engineers, procures and commissions continuous torrefaction plants using KeyTor, Keystone Energy's continuous torrefaction technology, which is the subject of Indian patent applications 202211023704 and 202211023710. Plant configurations run from 50 to 1,000 tonnes per day of input and are engineered for 6,000+ operating hours per year.

Delivered projects span four Indian states. The 100 TPD legacy waste and RDF plant in Warangal, Telangana is fully commissioned. A 500 TPD MSW plant for NTPC in Gorakhpur, Uttar Pradesh and a 200 TPD rice straw plant for TransPacific Engineers in Sangrur, Punjab are both in commissioning. A 50 TPD STP sludge pilot for Delhi Jal Board has been completed.

See the delivered plants  ·  How torrefaction works

Questions

What is the biomass co-firing mandate in India?

India's Ministry of Power requires coal-based thermal power plants to co-fire biomass alongside coal. The policy revised in June 2023 set 5% co-firing from FY 2024-25, rising to 7% from FY 2025-26. It applies to all coal-based thermal power plants.

What percentage of biomass co-firing is required in 2025-26?

7% biomass co-firing is required in all coal-based thermal power plants from FY 2025-26, up from 5% in FY 2024-25.

Why is torrefied biomass needed for higher co-firing percentages?

Untreated agricultural-residue pellets can be co-fired at roughly 7 to 10 percent without modifying existing plant equipment. Beyond that, their moisture content, low energy density and poor grindability cause handling and milling problems. Torrefied biomass is dried and densified, behaves more like coal in existing mills, and NTPC pilot work has demonstrated co-firing of up to 20 percent using it.

What is the calorific value of torrefied fuel?

It depends on the feedstock. Keystone Energy's measured ranges are 3,700 to 6,000 Kcal/kg for woody biomass, 4,000 to 4,300 for rice straw, 3,800 to 4,000 for refuse derived fuel, 3,700 to 4,000 for municipal solid waste, and 3,500 to 3,800 for undigested STP sludge.

Who builds torrefaction plants for biomass co-firing in India?

Keystone Energy designs, engineers and commissions continuous torrefaction plants in India that convert biomass, municipal solid waste, RDF and STP sludge into torrefied fuel for co-firing. Delivered projects include a 500 TPD MSW plant for NTPC in Gorakhpur, a 200 TPD rice straw plant in Sangrur, a 100 TPD legacy waste and RDF plant in Warangal, and a 50 TPD STP sludge pilot for Delhi Jal Board.

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+91 011-69952419 info@keystone-energy.in

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