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Uses of Groundnut Shell and Its Growing Economic Potential

Uses of Groundnut Shell and Its Growing Economic Potential
Nikhil Tiwari | October 27, 2025
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Uses of Groundnut Shell and Its Growing Economic Potential

Groundnut shells, often discarded as farm waste, are emerging as a valuable resource with wide applications. Every year, millions of tons of these shells are produced globally, offering industries a sustainable and low-cost raw material. Their unique properties, such as lightweight, fibrous, and rich in carbon, make them useful in energy, agriculture, industry, and even construction.

From biofuel and electricity generation to compost, activated carbon, and eco-friendly building materials, groundnut shells are proving their worth. By rethinking how we use this agricultural byproduct, we can reduce waste, support farmers, and build greener industries.

High-Value Uses of Groundnut Shell

The unique properties of groundnut shells unlock a surprisingly diverse range of applications, turning agricultural waste into valuable commodities. These uses span across energy, agriculture, industry, and construction.

Energy Sector

With the global push towards cleaner energy, groundnut shells offer a promising renewable alternative to fossil fuels.

  • Biofuel Production: The high carbon and cellulose content makes them an excellent feedstock for producing biofuels like bioethanol and biodiesel. Through processes like pyrolysis and gasification, shells can be converted into energy.
  • Electricity Generation: Groundnut shells have a high calorific value, meaning they release a significant amount of energy when burned. It's estimated that one ton of peanut shells can generate enough electricity to power a home for over a month.
  • Briquettes and Pellets: The shells can be compressed into high-density briquettes or pellets. These serve as a clean and efficient solid fuel for industrial boilers and household cooking, replacing coal and firewood.

Industrial Applications

The shells' chemical and physical properties make them a valuable resource in various industrial processes.

  • Activated Carbon: The porous nature of groundnut shells makes them an ideal raw material for producing activated carbon. This high-demand product is used extensively in water and air purification systems to adsorb toxins, pollutants, and dyes.
  • Industrial Enzymes and Chemicals: The biomass from groundnut shells can be used as a substrate for the production of industrial enzymes and other valuable biochemicals.
  • Particle Board and Composites: The fibrous nature of the shells allows them to be used as a filler material in the manufacturing of particle boards, composites, and even some plastics, reducing the need for synthetic materials.

Construction Materials

Groundnut shell ash (GSA) is gaining attention as a sustainable additive in the construction industry.

  • Cement and Concrete: GSA has pozzolanic properties, meaning it can react with other compounds during cement hydration to form materials with cementing properties. Replacing a portion of cement with GSA in concrete can increase its strength, improve durability, and reduce its carbon footprint.
  • Bricks and Blocks: Groundnut shells and their ash can be incorporated into the manufacturing of bricks and sand-crete blocks. This not only helps in waste management but also produces lighter bricks with good thermal insulation properties.

Agriculture and Environment

Groundnut shells can be returned to the earth in ways that benefit the soil and reduce waste.

  • Animal Feed: Due to their high fiber content, groundnut shells can be used as a roughage source in the diets of ruminant animals like cattle, sheep, and goats. Although their high lignin content can make them hard to digest, pre-treatment can enhance their nutritional value.
  • Compost and Fertilizer: When composted, groundnut shells slowly release nutrients and improve soil structure. Using groundnut shell compost can reduce the need for chemical fertilizers, promoting more sustainable farming practices.
  • Soil Amendment: In their raw form, shells can be used as mulch to retain soil moisture, suppress weeds, and improve aeration.

Economic Potential of Groundnut Shell

Groundnut shells, often viewed as agricultural waste, possess significant economic potential across various industries. With global groundnut production reaching approximately 50.46 million metric tons in 2023, a substantial volume of shells is generated annually, as they constitute 21-29% of the dried pod's weight. It equates to roughly 11 million metric tons of shells each year, creating a consistent and low-cost raw material.

The energy sector presents a major opportunity. Companies can convert groundnut shells into valuable biofuels like bioethanol and biodiesel. For example, one ton of shells can generate 1.25 megawatt-hours (MWh) of electricity, which is enough to power an average U.S. home for more than a month.

The shells can also be compressed into biomass briquettes, which serve as a high-density, energy-concentrated fuel source. The Indian market for fuel processing from groundnut shells is projected to grow at a compound annual growth rate of about 10%.

Challenges in Groundnut Shell Utilization

Despite its immense potential, the widespread use of groundnut shells faces several hurdles that need to be addressed.

  1. Collection and Logistics: Groundnut shells are bulky and have a low density, which makes their collection, transportation, and storage inefficient and costly. Establishing an effective supply chain is crucial.
  2. High Lignin Content: The high concentration of lignin makes the shells resistant to breakdown. This can be a challenge for processes like biofuel production and animal feed formulation, often requiring costly pre-treatment methods to improve efficiency.
  3. Contamination: Improper handling and storage can lead to contamination, particularly from aflatoxins, which are toxic compounds produced by certain molds. This is a major concern, especially when the shells are intended for animal feed.
  4. Lack of Awareness and Technology: In many groundnut-producing regions, there is a lack of awareness about the potential uses of the shells. Furthermore, access to the necessary technology to process them into high-value products may be limited.
  5. Economic Viability: For the utilization of groundnut shells to be successful, the end products must be economically competitive with existing alternatives. This requires efficient processing technologies and stable markets.

Conclusion

Groundnut shells are no longer just leftovers of peanut farming, they are a versatile resource with growing economic and environmental value. Their potential spans renewable energy, sustainable farming, industrial products, and green construction.

Yet, challenges like logistics, lignin content, and lack of awareness need to be addressed for large-scale adoption. With the right technology and market support, groundnut shells can shift from being agricultural waste to a key contributor in sustainable development.

Turning waste into opportunity, these shells remind us that even the simplest resources can drive innovation and change.