Biochar Market Analysis | 2022-2028

“The Biochar Market was estimated at US$ 172 million in 2021 and is expected to grow at a CAGR of 13% during 2022-2028 to reach US$ 480 million in 2028”.

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Market Dynamics

Introduction

Biochar market refers to the market of fine-grained charcoal obtained from biomass (plant material and agricultural waste). Biochar may be produced from various thermochemical technologies that include pyrolysis, gasification, and others which involve slow burning of organic matter in a limited or no-oxygen environment. The biochar is used as an additive to soils to improve carbon storage and nutrient retention.

Further, biochar may help increase soil fertility of acidic soils, and agricultural productivity and may even protect soil-borne and some foliar diseases. Biochar also finds application in wastewater treatment and even has the potential to help in mitigating climate change owing to its carbon-sequestering nature. The total biochar market revenue is calculated based on the total consumption of biochar globally.

Market Drivers

Increasing environmental concerns regarding greenhouse gas emissions led to increased biochar adoption. In December 2015 Paris Climate Accord or Paris Climate Agreement was signed by 175 countries aimed at reducing global CO2 emissions by 28% by 2025. The governments across the globe are proactively involved in reducing the carbon footprint in their respective countries aiding growth in the global biochar market.

According to the International Biochar Initiative, soil is considered the major source of nitrous oxide (N2O) and acts as a sink and source of methane (CH4). N2O is 23 times and CH4 is 298 times more harmful than carbon dioxide (CO2) as greenhouse gases in the atmosphere. Hence, biochar is extensively used in agricultural fields due to its property to reduce N2O emissions by up to 90%. Biochar when added to soil increases the soil aeration reduces the denitrification and increases sink capacity for methane (CH4).

Furthermore, biochar adds electron acceptors in the soil thereby increasing the soil's redox potential to reduce the N2O source capacity of the soil. According to the Center for International Forestry Research (Indonesia), biochar can be used in agricultural land management to limit the emission of greenhouse gases per unit of product footprint. These applications of biochar include the pyrolysis of manure as a hygienic alternative, biochar as a composting additive, feed additive for the treatment of manure, etc.

It can also be utilized as a renewable energy source in mechanical applications including both power and heat, for instance warming business nurseries or delivering mechanical steam. Biochar can retain atmospheric carbon dioxide for a long duration typically for 100 to 1000 years thereby helping in reducing greenhouse gases. Therefore, extensive adoption of biochar for reducing greenhouse gas emissions and producing clean, renewable energy is expected to positively influence the global biochar market growth.

Market Restraints

The key factor restraining the growth of the global biochar market is the health and safety issues related to biochar. The sorption of soil nutrients and water by biochar reduces the nutrition level of the soil thereby reducing the efficacy of soil. Some biochar also acts as a source of contaminants such as Polycyclic Aromatic Hydrocarbons, Volatile Organic Compounds, Dissolved Organic Carbon, heavy metals, etc. which may lead to serious health issues such as respiratory diseases.

Moreover, the fine ash obtained from biochar produces dust increases the risk of respiratory diseases. Also, biochar charcoal emits harmful gases which can lead to human health issues such as respiratory disorders (Chronic Obstructive Pulmonary Disease (COPD), asthma, etc.). Some types of biochar may be at risk of accidental ignition and therefore safety while storage and transportation are required.

Recent Development

There is stiff competition in the Biochar market. The growth of the companies is directly dependent on industry conditions and government support. These companies differentiate their Biochar based on their quality and penetration in the target and emerging markets. Also, some major mergers and acquisitions in the industry recently have significantly influenced the competitive dynamics. For example:

• In January 2023, to expand its biochar and wood-based activated carbon operations in North and South America, CN Energy Group, Inc. announced that it had opened its American headquarters in Washington, D.C.

Segments Analysis

By Technology Type

“The pyrolysis market dominated with the highest share in 2021”.

The market is segmented into pyrolysis, gasification, and others. The pyrolysis market holds the largest share in 2021. The largest share is mainly due to rising concerns about greenhouse gas emissions that cause global warming across the world cause is majorly driving the biochar market by pyrolysis.

According to the United States Environment Protection Agency report, there is an increase in the atmospheric concentrations of greenhouse gases that produces a positive climate warming effect. The warming effect associated with carbon dioxide alone increased by 30%. As per the EPA, agriculture, forestry, and other land use contribute around 24% of total greenhouse gas emissions globally.

The production of biochar by the pyrolysis process helps in reducing CO2 emission which majorly contributes to global warming. This benefit leads to the high adoption of pyrolysis technology to produce biochar positively impacts the pyrolysis market during the forecast period.

By Application Type

“Agriculture holds the largest market share in the application segment in 2021”.

The market is segmented into agriculture, water, & wastewater treatment, and others.  In 2021, agriculture maintained the leading market share within the application segment. Biochar is used in agriculture to enhance soil quality as it converts agricultural waste into a powerful soil enhancer that can hold carbon and make the soil more fertile, which can boost food security, preserve cropland diversity, etc.

Biochar systems can also reverse soil degradation. Rising agricultural production for sustainable crop production is expected to fuel growth in the global agriculture market during the forecast period.

Regional Analysis

“North America is expected to hold the largest share of the biochar market throughout the forecast period”.

The market is broken down geographically into areas, namely North America, Europe, Asia-Pacific, and the Rest of the World (RoW).  In terms of regions, North America is likely to maintain its largest share in the biochar market throughout the forecast period. This growth is driven by the increasing demand for improvement in crop yield and soil fertility along with the increasing demand for agricultural products.

North America is reported to have been continuously using chemical fertilizers coupled with deforestation and mining practices that degraded the soil texture and quality. Such soil quality degradation activities are expected to boost the demand for biochar which results in impressive growth across the North American biochar market.

The primary reason that biochar is in significant demand is the potential of biochar to minimize nitrogen leaching into groundwater and the ability to moderate solid acidity. Further, the effective farming guidelines for enhancement of the soil quality being implemented by both the non-government and government organizations in North America are expected to drive solid growth across the North American biochar market.

Key Players

The following are the key players in the Biochar Market (arranged alphabetically)

• Airex Energy Inc.
• ArSta Eco Pvt Ltd.
• Biochar Supreme
• Coaltec Energy USA
• Farm2Energy Pvt. Ltd
• Frontline BioEnergy LLC
• KARR Group Co. (KGC)
• Pacific Biochar Corporation
• Phoenix Energy
• ProActive Agriculture.

Note: The above list does not necessarily include all the top players in the market.

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