How can Paddy Straw Storage Strengthen the Biomass Supply Chain? Infrastructure and Finance Needs in Punjab

India is projected to be the fastest-growing bioenergy market in the world between 2023 and 2030, accounting for 35 per cent of the global demand (Moorhouse and Báscones 2025). India has already set several blending targets—like 5 per cent compressed biogas blending requirement by 2028–29, 7 per cent of biomass cofiring in power plants by 2026, 20 per cent ethanol by 2025–26 and 5 per cent biodiesel by 2030 (Ministry of Petroleum & Natural Gas 2023). With such growing targets, the demand for sustainably sourced biomass is set to grow, requiring dedicated policy support, robust supply chains, and skilled workforces. Among the various types of biomass, channelling the surplus crop residue of 230 million tonnes generated annually for bioenergy production can deliver India several wins: reduced fossil fuel dependence and stubble burning, creation of rural jobs, and improved farmer incomes.

While existing government schemes support baling, collection, and utilisation of crop residue, policy discourse around effective biomass storage is currently missing in India. Punjab is the central key state taken in the study, as it has increased the utilisation of paddy straw for value added pathways to tackle crop residue burning improving air quality. This study outlines factors impacting feedstock quality at biomass storage depots, examines minimum infrastructure needs, and estimates investments. Authors also estimate the budget and land required in setting up effective paddy straw biomass storage depots for managing over 30 per cent surplus paddy straw projected to be used in ex-situ crop residue management in Punjab.