Biochar Market Report

Adding biochar to the soil improves its ability to store water and fertilizer, giving crops vital nutrients and fostering plant development. Due to its capacity to enhance the physical and chemical properties of soil, as well as promote soil fertility and productivity, resulting in greater crop strength and development while producing fewer pollutants, biochar is becoming more and more well-liked in developing nations. The use of biochar in agriculture is being encouraged by governments because it can cut greenhouse gas emissions like nitrous oxide and methane. Biochar has been utilized more frequently in agriculture in both developed and developing nations as a result of advances in sustainable agricultural technology. Additionally, adding biochar to the diet of animals including cattle, goats, fowl, pigs, and fish has had positive results. increasing the market for biochar in the process. For instance, around 1.3 billion tonnes, or one-third, of the food produced each year for human consumption worldwide is wasted. In the US, 30% of all food, or US$ 48.3 billion, is wasted annually. An estimated 6.7 million tonnes of food are wasted by U.K. households each year. The Food Corporation of India estimates that each year over 23 million tonnes of cereals, 12 million tonnes of fruit, and 21 million tonnes of vegetables are wasted. The market for biochar has potential as a result of this.

Along with fundamental structural obstacles including producers' lack of capital, an immature carbon market, and shorter timelines for mine site restoration bonds, biochar's high price point continues to be a major obstacle to the growth of the biochar industry. The commercial value of biochar has recently been hindered by a lack of advanced tools for low emission biochar synthesis, particularly for remote or mobile production. Although biochar commercialization is still in its early phases, the absence of consistency and standards in this hard-to-sell product continues to restrain the market's expansion. One of the key things limiting the potential increase of biochar consumption will continue to be concerns about the unsustainable biochar production process.

Collaborations improve the efficiency of biochar, improve the quality of products, and broaden its application in different fields, from farming to environmental control. These synergies also make it easier to share resources and knowledge, leading to the creation of scalable and sustainable biochar solutions that can meet the growing need for environmentally friendly and effective soil improvements. For instance, in May 2024, Carbon Standards International (CSI) and International Biochar Initiative (IBI) are thrilled to announce a new collaboration aimed at developing improved standards and certifications to support the growing biochar industry. Additionally, in May 2024, at the VivaTech event in Paris, Carbonity, an industrial biochar producer, and First Climate, a carbon asset manager, revealed they had signed a forward contract with Microsoft for supplying carbon dioxide removal credits. The contract specifies that 36,000 tons of carbon credits will be issued and delivered over the course of the next three years.

In Asia Pacific, the main drive behind this industry is the potential value of the land in terms of soil improvement and carbon sequestration. Market expansion has also benefited from the area's remarkable economic and agricultural development In the Asia-Pacific area, China is the leading producer of this kind of char. The area is grappling with problems such the disposal of crop residue, soil contamination, declining quality, field burning, and greenhouse gas emissions. In order to address these concerns, the conversion of agricultural wastes into this product and the use of this product as a soil conditioner on crops are fueling expansion in this area.

Rising demand for organic foods and high meat consumption, North America is currently the second-largest market around the globe for such char. The sector has grown as a result of several local and large-scale producers working on a national and global level. According to USBI (US Biochar Initiative), the survey participants' domestic char production ranges from 35,000 to 70,000 tons annually. For a North American total of 18,700 to 76,600 TPY, the Canadian production adds 1,700 to 6,600 TPY. Although a huge percentage of respondents have been using biochar for at least two years, and the majority of the top tier has more experience than five years, compared to smaller users, a substantial number of users have been in operation for longer. In addition, as this area develops, low feed prices for cattle are beginning to emerge.