Biochar Market Analysis

Global Biochar Market Overview

Biochar market size was valued at USD 2.05 Billion in 2023. The Biochar industry is projected to grow from USD 2.21 Billion in 2024 to USD 3.99 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.68% during the forecast period (2024 - 2032).

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Biochar is a type of charcoal made by heating waste materials such as agricultural waste, wood waste, forest waste, and animal dung under controlled conditions. It is frequently used as a soil amendment to reduce pollutants and hazardous materials, as well as to avoid moisture loss, soil leaching, and fertilizers runoff, among other applications. It's consisted of wide range of application in the various end use industries such as fabric additive in textile industry, as a raw material in the production of building material, and as a shield against electromagnetic radiation in the electronics industry. Environmental awareness, lower raw material costs, and consistent government waste management policies are expected to open up more business opportunities.

COVID-19 Impact vs Opportunities for Biochar Market

COVID-19 brought the entire world to a halt, which results in negative impact on agricultural industry as well as on global biochar market. Despite the fact that the biochar market has been negatively impacted by the COVID-19, the farmers are being encouraged by the stakeholders to install reactor on their farm to speed up the process of turning stubble into biomass. The UN's Intergovernmental Panel on climate change has been identified biochar as a feasible method for reducing pollution.

Market Dynamics

Drivers

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  Growing Demand for Biochar in Agriculture industry

  
  

Agriculture industry is expected to drive the global biochar market during the assessment period, and it is expected to dominate the market demand over the upcoming years. Since, biochar improves the soil's ability to hold water and fertilizer, supplying vital nutrients to crops and stimulating plant growth.

In the same line, biochar is gaining popularity in developing countries because to its potential to improve soil physical and chemical properties, as well as boost soil fertility and productivity, resulting in increased crop strength and growth while producing fewer pollutants.

Opportunities

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  Increasing usage of Biochar in various industrial application

  
  

Animal farming, and livestock farming such as cattle farming, and poultry farming others are the key consumers of biochar. End use industries such as agriculture, electronics, and textile industry has witnessed a spike in demand and a higher than usual consumption which is expected to re-normalize in the coming years. Increasing consumption of biochar market for heat and power generation coupled with the rising adsorption application are propelling the growth of the biochar market over the foreseeable period.

Restraints

High cost of Biochar The high cost of biochar, as well as underlying structural constraints such as a shortage of finance for producers, an immature carbon market, and shorter timescales for mining land restoration bonds, continue to stymie the biochar charcoal market's growth. Furthermore, the lack of effective technology for low-emission biochar synthesis, particularly for distant or mobile production, has hampered the biochar market value during the assessment period.

Challenges

Disadvantages of Biochar technology Biochar commercialization is still in its early phases, and this difficult-to-sell asset lacks uniformity and standardisation, slowing the market's growth. Concerns regarding the unsustainable production process of biochar market will continue to be one of the major factors limiting the growing potential of biochar consumption. Another factor impedes the growth of global biochar market is low product demand from Middle East and Africa region in the agricultural and livestock production which is expected to be a challenge factor for global biochar market.

Value Chain Analysis / Technology Analysis / Regulatory Implications

The supply chain analysis is the process of comprehending the steps taken by the stakeholders involved in the manufacturing and distribution of Biochar throughout the international market. The supply chain includes raw materials and suppliers, Biochar producers, distributors, and end-use industries.

The key raw material used in the production of Biochar market is grass, wood chips, cow manure, rice husk, cassava rhizome, wheat straw, and other agricultural residues. The production of biochar is also depending on the type of raw material to be used of product manufacture and pyrolysis conditions.

The distribution channel in this biochar market comprises distributors, wholesalers, and e-commerce merchants. Generally, the distributors are engaged in long-term sales agreements with producers and end-users. AgEnergy, AgraMarketing Solutions, AirTerra, All Power Labs Local Carbon Network, American Biochar Company, The Andersons, Aries Clean Energy, ARTiChar, Backwoods Biochar, BC Biocarbon, Biochar Solutions, Biological Carbon LLC, Ecotone Inc, Miller Soils LLC, Standard Biocarbon LLC, and Vermont Natural Ag Products are some of the key suppliers of Biochar.

The introduction of e-commerce is the latest ongoing trend in the global market, that offers on-door delivery and inexpensive pricing edge. Third-party online platforms, such as Alibaba, India MART, and others, are involved in e-commerce.

Segment Overview: By Technology

Pyrolysis- Pyrolysis technology is a type of manufacturing process in which the biomass is fed into the pyrolysis reactor from the top, while air is supplied from the bottom. Inside the reactor, biomass is heated and turned into biochar by chemical and physical processes. Biochar, syngas (synthesis gas) and pyrolysis oil are by-products of the pyrolysis process.

Gasification- Gasification is another production method for biochar, in which partially combusting biomass is heated at high temperatures (700-1000oC) in an oxygen-deficient environment. Through which it produces high-quality fuel gases (hydrogen and carbon monoxide) as well as biochar.

Others - Others include hydrothermal carbonization, and other technologies

By Application

Agriculture- Biochar generated from a native reed is widely used in agricultural industry to filter acidic or nutrient-laden river drains. The loaded chars are subsequently used to reduce nitrous oxide emissions and sink carbon in local dairy and farming operations.

Animal Farming- Biochar or carbonized biomass which is similar to charcoal has been widely used for the medical treatment of animals for ages. It is also used as regular feed supplements to improve animals health.

Industrial- Biochar has wide range of application in various end use industries such as for electricity generation or power generation, manufacturing of building materials in construction industry, and many more.

Others- Power generation, and textile industries are included in other segment.

Regional Analysis

North America is estimated to boost the global market growth The Biochar market in the North America region is anticipated to account for the largest share of the Biochar market and register the highest CAGR during the forecast period. This growth is due to presence of large number of manufacturers and distributors in this region, which are focusing on innovating its biochar product portfolio to increase the product demand.

Competitive Landscape The competitive landscape offers an analysis of the key developments by the companies operating in the global biochar market in the last three years. The global market for Biochar is expected to witness highest growth rate during the forecast period, owing to the increasing demand from the automotive industry. The global market represents strong numbers in terms of consumption. List of Key Companies Covered in this Report:

• Novocarbo (India)


• Airex Energy Inc.


• Diacarbon Energy (Canada)


• ArSta Eco Pvt Ltd. (India)


• Biochar Supreme (US)


• Coaltec Energy USA (US)


• Farm2Energy Pvt. Ltd. (India)


• Frontline BioEnergy LLC (US)


• KARR Group Co. (KGC) (US)


• Pacific Biochar Corporation (US)


• Phoenix Energy (US)


• ProActive Agriculture (US)

Recent Developments

• In June 2021, SUEZ Group and Airex Energy have formed a partnership in order to provide solutions to regions and industries on their path towards carbon neutrality. The expertise of the two Groups will enable them to industrialize the recovery of biomass residues into biochar (a stable form of organic carbon), which is essential to the resilience, vitality, and fertility of urban and agricultural soils.


• In 2021, the collaboration between Stine Seed Farms and Frontline BioEnergy, will transform biomass into biochar and bio-oil. The Frontline BioEnergy has delivered the final module of the Stine pyrolysis plant to the project site in Redfield, Iowa. This project will bolster Iowa’s farming industry by creating a value-added market for corn stover and other unused biomass.