Bioenergy will play a decisive role in India’s clean energy transition by enabling the decarbonisation of industrial process heat in the micro small and medium enterprises sector, senior government leaders said at a national workshop organised by the Ministry of New and Renewable Energy in New Delhi on 16 January 2026.
Delivering the keynote address, Shripad Yesso Naik underlined that India’s renewable energy journey over the past decade has gained unprecedented momentum, with bioenergy evolving from a peripheral option into a strategic pillar of the national clean energy framework. He said that while MSMEs contribute nearly one third of India’s manufacturing output and employ millions, a substantial share of their demand for steam and process heat continues to be met by fossil fuels such as coal furnace oil and pet coke. Transitioning this segment to renewable thermal energy, he stressed, is essential for achieving long term emissions reduction.
The workshop titled Introduction and Adoption of Biomass for Green Steam and Heat Applications in MSMEs was organised by MNRE in collaboration with the German Agency for International Cooperation and Grant Thornton Bharat. On the occasion, the report Decarbonizing MSMEs Use of Biomass for Green Steam and Heat Application was jointly released, outlining a structured roadmap for accelerating adoption of biomass based thermal solutions across Indian industry.
The Minister said bioenergy contributes simultaneously to multiple national priorities including energy security rural livelihoods waste management pollution reduction and climate action. He highlighted that biomass based green steam and heat solutions offer a practical and scalable pathway tailored to Indian conditions, given the country’s abundant availability of agricultural residue animal waste and municipal solid waste. Converting this waste into energy, he noted, can reduce emissions while creating additional income streams for farmers and rural entrepreneurs.
He outlined the government’s integrated policy 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 suited to MSMEs. These efforts are also aligned with the National Green Hydrogen Mission to strengthen India’s clean energy ecosystem.
Highlighting the significance of the report released at the workshop, the Minister said it provides a data driven sector specific assessment of biomass based green heat and steam applications in industries such as textiles food processing chemicals foundries and pharmaceuticals. The report identifies key enablers including biomass deployment obligations standardised steam supply agreements biomass trading platforms and stronger supply chain coordination to improve commercial viability and investor confidence.
Stressing that technology alone cannot drive transformation, the Minister called for close collaboration across the value chain, from farmers and farmer producer organisations supplying biomass to aggregators logistics providers boiler manufacturers energy service companies financiers and regulators. He said MSMEs need assurance on fuel availability pricing stability operational reliability and policy support to confidently shift away from fossil fuels.
Addressing the gathering, Santosh Kumar Sarangi said biomass based applications have the potential to be deployed nationwide, ranging from municipal solid waste to energy projects and compressed biogas to decentralised rural biogas plants. Such solutions, he said, support livelihoods strengthen rural value chains and expand decentralised energy access, making bioenergy a critical pillar of India’s clean energy transition.
Referring to the report, the Secretary highlighted the strong potential of biomass based industrial heat and steam applications across sectors including textiles food processing metals and artisan based industries, with flexibility for both large scale and decentralised use. He emphasised the need to strengthen biomass supply chains expand research and development and promote multi fuel boiler technologies to ensure year round fuel availability and cost effective operations for MSMEs. He also called for deeper international collaboration, particularly with Germany, on advanced boiler technologies and industrial applications.
The workshop was attended by senior officials from MNRE representatives of the German Embassy and GIZ industry leaders MSME associations financial institutions state governments technology providers and knowledge partners. Participants discussed policy frameworks financing mechanisms and practical deployment models to accelerate the shift towards biomass based green heat and steam in Indian industry.
The report concludes that widespread adoption of biomass for industrial heat can significantly reduce emissions from MSMEs while improving energy security and rural incomes. With coordinated policy action technology deployment and stakeholder collaboration, bioenergy is positioned to become a cornerstone of India’s strategy to decarbonise its vast MSME sector.
