Biochar Market Size, Share, Opportunities, And Trend By Production Technology (Pyrolysis, Gasification), By Feedstock (Crop Residue, Food And Forestry Waste, Animal Manure), By Application (Electricity Generation, Farming, Livestock, Others), And By Geography - Forecasts From 2024 To 2029

The Biochar Market is anticipated to grow at a compound annual growth rate (CAGR) of 13.62% over the forecast period to reach US$3.911 billion by 2029, increasing from US$1.600 billion in 2022.

The biochar market is expected to have substantial expansion, due to several components. These incorporate growing awareness and requirements for environmentally friendly and organic items, the increasing importance of renewable energy sources, escalating environmental concerns, and heightened recognition of the benefits of biochar in enhancing soil health and mitigating greenhouse gas emissions. Moreover, the availability of raw materials at a low cost and government policies favoring sustainable waste management further contribute to market expansion.

What are the biochar market growth drivers?

• Increasing support for the organic agricultural sector by governments

Governments around the world are increasingly supporting organic agriculture, channeling funds towards sustainable farming practices and enhancing soil health. Biochar's power to strengthen and propel fertility of the soil and retain its moisture attracted recognition from farmers as well as manufacturers for its effective solutions.

Concurrently, consumers are exhibiting a growing preference for products cultivated through sustainable methods, propelling the international organic market, to a projected worth of USD 230-280 billion by 2025. This surge signifies the mainstreaming of health and wellness-oriented foods, with the packaged food segment anticipated to reach approximately USD 70 billion by 2025.

In the United States, the National Organic Program (NOP), operated under the USDA's Agricultural Marketing Service, establishes and enforces standards for the organic certification of agricultural products, ensuring consistency and consumer confidence. Initiatives such as the provision of $21 million in technical assistance grants, available through the Inflation Reduction Act, further support agricultural producers and rural small businesses in adopting renewable energy systems, including biomass, in 2023 and 2024.

Furthermore, ventures like Sunshine Organics and Compost (SCO), have secured a $4.9 million grant from the USDA Rural Development Fertilizer Production Expansion Program (FPEP) to produce biochar from commercial food waste.

Another compelling reason for biochar adoption is the inadequate organic soil content, particularly evident in regions like India, where the green revolution and the prevalence of inexpensive chemical fertilizers have hindered organic soil development. Biochar presents a promising avenue for farmers to address this deficiency, enhancing soil health and crop yields without relying on synthetic fertilizers.

• The farming sector is expected to hold a prominent share of the biochar market globally.

Biochar is a reasonable option to eliminate carbon from the atmosphere and sequester it in soils for several centuries. When utilized as a soil amendment, biochar improves plant growth and yields by enhancing water and nutrient retention, soil aeration, and micro-organism activity. Diverse biochar characteristics and initial soil properties can significantly impact crop growth, carbon decomposition, and nitrogen transformation by regulating degradation and biochemical cycling.

Factors such as sources, pyrolysis temperatures, initial soil properties, environmental conditions, biochar source, characteristics, and application rate influence biochar’s impacts on crop yield, soil properties, and greenhouse gas emissions. As per OECD data, the production of wheat in the United States was 51,673 thousand tonnes, Canada was 34,953 thousand tonnes, China had 1,30,776 thousand tonnes and India had 1,09,754 thousand tonnes in the year 2022.

Further, the Department of Agriculture and Farmers Welfare has released the final estimates for major crop production for 2022-23, revealing a record total of 3,296.87 lakh tonnes of foodgrains, a 140.71 lakh increase from the 3,156.16 Lakh tonnes recorded in 2021-22 and a 308.69 lakh increase from the previous five years’ average foodgrain production. Farmers are increasingly seeking biochar to increase productivity and yield of the field which will result in a boost of the biochar market in the coming year.

What are the key geographical trends shaping the biochar market?

The United States is expected to grow with high CAGR in the coming years.

Years of wildfire control, insect and disease outbreaks, and alien species have resulted in the accumulation of wood with little or no economic value in many forests around the United States. This extra biomass not only can cause large flames but also threatens the long-term health of forest ecosystems. Biochar is a type of charcoal created from woody debris that, when applied to soils, increases productivity and provides extra climate change and pollution mitigation advantages. The biochar industry has grown significantly in the United States. This is mostly because of growing environmental concerns, and rising government initiatives.

Also, biochar is used by farmers to boost soil health. This helps crops grow more while causing less harm to the environment. As per the USDA Economic Research Service, Agriculture, food, and associated industries contributed around $1.420 trillion to the US GDP in 2022, accounting for 5.5 percent. The production of America's farms contributed $223.5 billion to this total or around 0.9 percent of the United States GDP. Furthermore, agriculture's overall contribution to GDP exceeds 0.9% since agriculture-related sectors rely on agricultural inputs to bring value to the economy.

Furthermore, positive government regulations and activities focused on encouraging sustainability have given the biochar business a considerable boost. Tax incentives, subsidies, and grants stimulate investment in biochar production and use. For instance, in September 2023, Puro. earth pre-certified American BioCarbon, an innovative manufacturer of sustainable goods produced from sugarcane bagasse, for CO2 Removal Certificates (CORCs) created during bagasse biochar manufacturing in its commercial plant. This milestone is a big step forward in American BioCarbon's objective to tackle climate change by developing creative solutions that fulfill many UN Sustainable Development Goals at the same time.

The US government has established several initiatives to support the expansion of the biochar sector. For instance, in September 2023, the U.S. Department of Energy's Bioenergy Technologies Office gave $23.6 million to nine groups to make cheaper biofuels and bioproducts that cut greenhouse gases. These groups are in nine states and create jobs, help rural places, and let underserved areas join in, all while making the U.S. cleaner and fairer with energy.

The chosen projects support DOE's investment in biofuel development and production, as well as agricultural innovation and growth, and contribute to meeting the Sustainable Aviation Fuel (SAF) Grand Challenge goal of producing 35 billion gallons of low-GHG emission SAF from domestic biomass and waste resources per year by 2050.

Recent developments in the biochar market:

• July 2023- Airex Energy, Groupe Rémabec, and SUEZ partnered to establish Canada’s first industrial biochar production plant in Port-Cartier, Québec. The plant produces carbon-rich biochar from Groupe Rémabec’s residual biomass. The plant, owned by CARBONITY, is going to use cutting-edge equipment and expertise from SUEZ. The plant aims to produce 350,000 tonnes of biochar by 2035, contributing to the United Nations Intergovernmental Panel on Climate Change’s five negative-emission solutions to curb global warming. The facility also utilizes SUEZ’s expertise in organic waste transformation, agricultural soil enhancement, biofertilizers, and circular economy resources to reduce customers’ carbon footprint.
• September 2023- Petrox Resources Corp. signed a memorandum of understanding (MOU) with M&L Renewable Energy Group Ltd. for the development of a biochar facility in Edmonton, Alberta. The project aims to establish similar plants in multiple Canadian locations. The initial phase is expected to produce 3,500 tonnes of biochar annually, costing around $3.7 million.

Biochar Market Scope:

Report Metric	Details
Biochar Market Size Value in 2022	US$1.6 billion
Biochar Market Size Value in 2029	US$3.911 billion
Growth Rate	CAGR of 13.62% from 2022 to 2029
Base Year	2022
Forecast Period	2024 – 2029
Forecast Unit (Value)	USD Billion
Segments Covered	Production Technology Feedstock Application Geography
Companies Covered	Airex Energie Inc. SynTech Bioenergy LLC Tolero Renewables PYREG GmbH Nirman Trust Bella Biochar Carbo Culture
Regions Covered	North America, South America, Europe, Middle East and Africa, Asia Pacific
Customization Scope	Free report customization with purchase

 

Market Segmentation:

The Biochar Market is segmented and analyzed as below:

• By Production Technology
  • Pyrolysis
  • Gasification
• By Feedstock
  • Crop Residue
  • Food and Forestry Waste
  • Animal Manure
• By Application
  • Electricity Generation
  • Farming
  • Livestock
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Others
  • Middle East and Africa
    • Turkey
    • Egypt
    • South Africa
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • Australia
    • Others

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key benefits for the stakeholders

2. RESEARCH METHODOLOGY

2.1. Research Design

2.2. Research Process

3. EXECUTIVE SUMMARY

3.1. Key Findings

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. BIOCHAR MARKET BY PRODUCTION TECHNOLOGY

5.1. Introduction 

5.2. Pyrolysis

5.3. Gasification

6. BIOCHAR MARKET BY FEEDSTOCK

6.1. Introduction 

6.2. Crop Residue

6.3. Food and Forestry Waste

6.4. Animal Manure

7. BIOCHAR MARKET BY APPLICATION

7.1. Introduction 

7.2. Electricity Generation

7.3. Farming

7.4. Livestock

7.5. Others

8. BIOCHAR MARKET BY GEOGRAPHY

8.1. Introduction

8.2. North America

8.2.1. By Production Technology

8.2.2. By Feedstock

8.2.3. By Application

8.2.4. By Country

8.2.4.1. USA

8.2.4.2. Canada

8.2.4.3. Mexico

8.3. South America

8.3.1. By Production Technology

8.3.2. By Feedstock

8.3.3. By Application

8.3.4. By Country

8.3.4.1. Brazil

8.3.4.2. Argentina

8.3.4.3. Others

8.4. Europe

8.4.1. By Production Technology

8.4.2. By Feedstock

8.4.3. By Application

8.4.4. By Country

8.4.4.1. United Kingdom

8.4.4.2. Germany

8.4.4.3. France

8.4.4.4. Others

8.5. Middle East and Africa

8.5.1. By Production Technology

8.5.2. By Feedstock

8.5.3. By Application

8.5.4. By Country

8.5.4.1. Turkey

8.5.4.2. Egypt

8.5.4.3. South Africa

8.5.4.4. Others

8.6. Asia Pacific

8.6.1. By Production Technology

8.6.2. By Feedstock

8.6.3. By Application

8.6.4. By Country

8.6.4.1. China

8.6.4.2. Japan

8.6.4.3. India

8.6.4.4. Australia

8.6.4.5. Others

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. Airex Energie Inc.

10.2. SynTech Bioenergy LLC

10.3. Tolero Renewables

10.4. PYREG GmbH

10.5. Nirman Trust

10.6. Bella Biochar

10.7. Carbo Culture

10.8. Biochar Now

10.9. Pacific Biochar Benefit Corporation

10.10. NetZero

Airex Energie Inc.

SynTech Bioenergy LLC

Tolero Renewables

PYREG GmbH

Nirman Trust

Bella Biochar

Carbo Culture

Biochar Now

Pacific Biochar Benefit Corporation

NetZero