Bioenergy to Play Pivotal Role in Decarbonising MSMEs : Union Minister of State Shripad Yesso Naik

Union Minister of State for New and Renewable Energy and Power today highlighted the pivotal role of bioenergy in India’s clean energy transition, particularly in decarbonising industrial process heat in the MSME sector. The Minister was delivering 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 in collaboration with the German Agency for International Cooperation (GIZ) and Grant Thornton Bharat. On the occasion, the Minister also jointly released the report titled “Decarbonizing MSMEs: Use of Biomass for Green Steam and Heat Application”.

Shri Naik said that under the leadership of Prime Minister Narendra Modi, India’s renewable energy journey has witnessed unprecedented momentum over the past decade, with bioenergy emerging from a peripheral role to become a strategic pillar of the country’s clean energy transition.

The Minister noted that bioenergy today extends far beyond electricity generation and contributes simultaneously to multiple national priorities, including energy security, rural livelihoods, waste management, pollution reduction and climate action. Highlighting the challenge of industrial decarbonisation, particularly in the MSME sector, he pointed out that while MSMEs contribute nearly one-third of India’s manufacturing output and employ millions, a significant share of their energy demand for steam and heat continues to be met through fossil fuels such as coal, furnace oil and pet coke. Transitioning this segment towards clean and renewable thermal energy, he emphasised, is therefore essential.

Emphasising that biomass-based green steam and heat solutions offer a practical, scalable and India-specific pathway, the Minister said that India’s abundant availability of agricultural residue, animal waste and municipal solid waste presents a unique opportunity to convert waste into value, reduce emissions and generate additional income for farmers and rural entrepreneurs. He outlined the Government’s integrated approach through initiatives such as the National Bioenergy Programme, SATAT and GOBARdhan, which support biomass briquettes and pellets, non-bagasse-based cogeneration, industrial applications and decentralised solutions tailored to MSMEs, while also strengthening linkages with the National Green Hydrogen Mission.

Highlighting the significance of the report released during the workshop, the Minister said that it provides a data-driven, sector-specific roadmap for adopting biomass-based green heat and steam solutions across industries such as textiles, food processing, chemicals, foundries and pharmaceuticals. The report also brings out key policy and market enablers including biomass deployment obligations, standardised steam supply agreements, biomass exchanges and strengthened supply-chain coordination, and is expected to serve as a valuable reference for policymakers, industry and financial institutions.

The Minister underlined that technology alone cannot drive transformation and called for close 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 stressed that MSMEs require confidence in fuel availability, pricing stability, operational reliability and supportive policies, and noted that platforms such as this workshop are critical for trust-building, knowledge-sharing and co-creation of solutions.

The Minister said that bioenergy truly embodies the spirit of Sabka Saath, Sabka Vikas. He expressed confidence that the outcomes of the workshop and the insights from the report would accelerate the adoption of green steam and heat solutions across the MSME sector and urged all stakeholders to convert intent into action

Secretary, Ministry of New and Renewable Energy, Shri Santosh Kumar Sarangi highlighted, that, biomass-based applications have the potential to be deployed across the country. From municipal solid waste-to-energy projects and compressed biogas to decentralised biogas plants in rural areas, biomass solutions support livelihoods, promote decentralised energy access and strengthen rural value chains, making bioenergy a critical pillar of India’s clean energy transition, he said.

Referring to the report launched at the event, the Secretary said it brings out the significant potential of biomass-based industrial heat and steam applications across sectors such as textiles, food processing, metals and artisan-based industries, while remaining adaptable to both large-scale and decentralised use. He underlined the need to strengthen biomass supply chains, enhance R&D and promote multi-fuel boiler technologies to ensure year-round fuel availability and cost-effective operations for MSMEs. Emphasising the importance of international collaboration, particularly with Germany, he called for greater engagement on advanced boiler technologies and encouraged MNRE’s scientific and R&D community to expand partnerships and accelerate adoption of biomass-based solutions across Indian industry.

The workshop was attended by senior officials of the Ministry of New and Renewable Energy, representatives of the German Embassy and GIZ, industry leaders, MSMEs, financial institutions, State Governments, technology providers and knowledge partners.

Brief Summary of Report on Decarbonizing MSMEs: Use of Biomass for Green Steam and Heat Application

The report, jointly developed by MNRE and GIZ in support identifies the key industries and sectors such as textile, food processing, chemical, metallurgical/foundry that need to adopt green heat and steam using biomass related solution. The report also provides recommendation to promote biomass usage in industries by having a Biomass Deployment Obligation, developing a biomass exchange and trading platform, specific industrial policy to promote usage of biomass, standardising steam supply agreements to mention a few. The report provides an overall understanding at where industries stand now in terms of energy consumption and adoption of biomass and what India can do to increase biomass and Green heat and steam adoption.