Evolution
Biochar, a form of charcoal that originated from ancient Amazonian tribes and has been utilized for thousands of years, is now gaining prominence as a crucial element in the net-zero ambitions of Fortune 500 Companies. These blue-chip firms are actively seeking to offset their carbon emissions, and biochar is proving to be a valuable tool in this endeavor. Produced by heating biomass and agricultural waste, biochar has the remarkable ability to sequester carbon for extended periods of time while simultaneously enhancing soil quality. It can be described as a truly scalable carbon removal solution
Process
Biochar is created through the process of pyrolysis, where wood and other biomass are heated in a low-oxygen chamber to limit emissions. This process yields bio-oils and gas that can be utilized for power generation. Biochar serves multiple purposes; it can be incorporated into the soil as a beneficial soil amendment or integrated into the production of building materials.
Market
The market value of biochar credits is approximately €111 ($120) per credit. This price is significantly higher compared to nature-based offsets, but still significantly lower than the current cost of other types of carbon removal offsets, such as electrochemical ocean carbon capture. Biochar credits can be considered as an appealing choice due to their longer-term durability, relative affordability, and co-benefits. Furthermore, blue-chip firms have been actively purchasing biochar credits since 2021, recognizing the value and advantages they offer.
The Way Forward
The potential of biochar is substantial, with projections indicating its capacity to sequester up to 2 billion tons of carbon dioxide annually by 2050, which is comparable to the annual emissions of India. The rising popularity of biochar can be attributed to a shift in the voluntary carbon markets, focusing on projects that actively remove carbon rather than relying on avoidance offsets, such as preserving existing trees.
