Union Minister of State for New and Renewable Energy and Power today underscored the critical role of bioenergy in India’s clean energy transition, particularly for decarbonising industrial process heat in the MSME sector. The Minister delivered the keynote address at a national workshop on Introduction and Adoption of Biomass for Green Steam and Heat Applications in MSMEs, organised by the Ministry of New and Renewable Energy (MNRE) in collaboration with the German Agency for International Cooperation (GIZ) and Grant Thornton Bharat. During the event, the Minister also jointly released the report Decarbonizing MSMEs: Use of Biomass for Green Steam and Heat Application.
Bhagwanth Khuba highlighted that under the leadership of Prime Minister Narendra Modi, India’s renewable energy journey has gained unprecedented momentum over the past decade, with bioenergy evolving from a peripheral role to a strategic pillar of the country’s clean energy transition.
The Minister noted that bioenergy now extends beyond electricity generation, supporting national priorities such as energy security, rural livelihoods, waste management, pollution reduction, and climate action. He pointed out that while MSMEs contribute nearly one-third of India’s manufacturing output and employ millions, much of their energy demand for steam and heat is still met through fossil fuels like coal, furnace oil, and pet coke. Transitioning this sector to clean thermal energy, he emphasized, is crucial.
Khuba said biomass-based green steam and heat solutions offer a practical and scalable approach suited to India, leveraging the country’s abundant agricultural residue, animal waste, and municipal solid waste. Such solutions can reduce emissions, generate additional income for farmers and rural entrepreneurs, and support sustainable industrial growth. He highlighted government initiatives including the National Bioenergy Programme, SATAT, and GOBARdhan, which promote biomass briquettes and pellets, non-bagasse-based cogeneration, industrial applications, and decentralised solutions tailored to MSMEs, while linking with the National Green Hydrogen Mission.
Discussing the report, the Minister noted it provides a sector-specific, data-driven roadmap for adopting biomass-based green heat and steam across industries such as textiles, food processing, chemicals, foundries, and pharmaceuticals. The report also identifies key policy and market enablers, including biomass deployment obligations, standardised steam supply agreements, biomass exchanges, and strengthened supply-chain coordination, making it a valuable reference for policymakers, industry, and financial institutions.
Khuba stressed that technology alone cannot drive transformation, calling for collaboration across the entire value chain—from farmers and FPOs supplying biomass to aggregators, logistics providers, boiler manufacturers, energy service companies, financiers, and regulators. He noted that MSMEs need confidence in fuel availability, pricing stability, operational reliability, and supportive policies, and emphasized that workshops like this are vital for trust-building, knowledge-sharing, and co-creating solutions.
The Minister said bioenergy exemplifies the spirit of Sabka Saath, Sabka Vikas, expressing confidence that the workshop’s outcomes and the report’s insights will accelerate green steam and heat adoption across the MSME sector and urged stakeholders to turn intent into action.
MNRE Secretary Santosh Kumar Sarangi highlighted biomass-based applications’ potential across the country, including municipal solid waste-to-energy projects, compressed biogas, and decentralised biogas plants in rural areas. He said these solutions support livelihoods, promote decentralised energy access, and strengthen rural value chains, making bioenergy a critical pillar of India’s clean energy transition.
Referring to the report, Sarangi said it identifies significant potential for biomass-based industrial heat and steam in sectors such as textiles, food processing, metals, and artisan-based industries, adaptable to both large-scale and decentralised use. He emphasized strengthening biomass supply chains, advancing R&D, and promoting multi-fuel boiler technologies to ensure year-round fuel availability and cost-effective operations for MSMEs. He also called for enhanced international collaboration, particularly with Germany, to advance boiler technologies and accelerate biomass adoption across Indian industry.
The workshop brought together senior MNRE officials, representatives of the German Embassy and GIZ, industry leaders, MSMEs, financial institutions, state governments, technology providers, and knowledge partners.
