BiofuelCircle, a Pune-based start-up has set up 70 biomass banks over the past three years, creating a growing farm-to-fuel network that connects farmers with energy markets, according to its co-founder and CEO Suhas Baxi, The Hindu Businessline reported.
Each biomass bank is designed as an independent rural enterprise, typically involving an investment of around Rs 3 crore and generating annual revenues of Rs 3-4 crore. The company said these units are helping build a structured supply chain for agricultural residues while creating local employment.
The firm noted that the first 10 biomass banks in its network have already turned profitable, while another 25 are moving towards profitability. Based on current trends, most units are expected to achieve operating profitability within 12 to 18 months and recover investments within three to four years.
Officials said the model focuses on building commercially viable rural enterprises rather than relying on long-term financial support. While subsidies can help attract initial investment, the company emphasised that long-term sustainability depends on strong operations and efficient supply chains.
BiofuelCircle is working on developing a digital biomass marketplace that connects farmers, aggregators and industrial users. The platform aims to improve price transparency, streamline contracts and ensure reliable supply of biomass.
The company believes that while bioenergy alone cannot replace fossil fuels, it can help reduce import dependence and strengthen energy security when combined with other renewable sources such as solar and wind.Industry experts said the model could play a key role in developing decentralised energy systems and strengthening rural economies if scaled up effectively.
