Precision Production & Carbon Credits in Biochar Market

According to Inkwood Research, the global biochar market is anticipated to grow at a CAGR of 12.89% from 2024 to 2032. Biochar, a carbon-rich material derived from biomass pyrolysis, emerges as a versatile solution, serving dual roles as a renewable fuel and a soil enhancer. Its unique carbon structures, with a higher ratio of aromatic carbon and condensed formations, enhance soil stability.

Further, common feedstocks for biochar production include wood chips, pellets, and various organic residues, with unconventional sources like sewage sludge also being utilized. The properties of biochar are influenced by production conditions, where pyrolysis results in both oil and biochar. 

Additionally, advancing sustainability, biochar liquid credits turn carbon sequestration into measurable units, offering financial incentives that align environmental benefits with economic gains and fostering a harmonious balance between ecological preservation and financial success.

Biochar Market - Inkwood Research

Pyrolysis Phases & Thermal Decomposition | Biochar Market

Pyrolysis, a thermal decomposition process described by the controlled application of heat within specific temperature ranges, is vital in biochar production. It is widely adopted in Europe (Germany, Sweden, Netherlands), the United States, Australia, and Southeast Asia

This intricate process involves breaking down organic matter bonds to generate carbonaceous gases, hydrogen, and methane, resulting in a mix of oil, char, and gases. The primary mechanism initiates thermal decomposition, producing benzene rings and solid char, releasing volatile compounds crucial for biochar formation. 

Furthermore, the subsequent secondary mechanism encompasses cracking and recombination, shaping the molecular composition of the ultimate by-products. Personalized outcomes are achieved by finely tuning temperatures, involving gradual heating below 450 °C, intermediate heating, and high-temperature pyrolysis at 800 °C.

Moreover, pyrolysis assists in enhancing soil health by improving nutrient retention and water-holding capacity and fostering beneficial microbial activity, offering a sustainable solution for resilient agriculture.

Operating Conditions & Biochar Production through Pyrolysis

Biochar production through pyrolysis involves heating biomass in the absence of oxygen, converting it into a stable carbon-rich material. The operating conditions, including temperature, residence time, and heating rates, significantly influence the quality and characteristics of the produced biochar, impacting its efficacy in soil improvement and carbon sequestration.

  • Slow Pyrolysis

Slow pyrolysis, also known as conventional pyrolysis, emerged in the early 1900s. It transforms wood into methanol, ethanol, acetic acid, and coal through a 24-hour industrial process. Operating above 400 °C with adjustable heating rates, charcoal systems gradually heat organic matter in an oxygen-deprived setting. 

Further, this technology, with temperatures ranging from 400 to 650 °C and residence times of 5 to 30 minutes to several days, fosters the cracking and recombination of volatile organic compounds. It prioritizes high-quality char production while minimizing liquid and gaseous by-products. 

In accordance with this, institutions like Cornell University in the United States are exploring slow pyrolysis for biochar applications, emphasizing agriculture and environmental benefits.

  • Intermediate Pyrolysis

Intermediate pyrolysis, situated between slow and fast pyrolysis, operates at moderate temperatures, typically between 450–600 °C. Balancing thermal decomposition, it efficiently produces both char and liquid oil. With versatile feedstock options, this temperature-regulated method holds aim for diverse industrial applications, offering a strategic and adaptable approach.

  • Fast Pyrolysis

Fast pyrolysis, operating at 600–650 °C with rapid heating, efficiently decomposes organic matter into vapors and aerosols, yielding high-quality liquid oil. This scalable and economically feasible technology is versatile, using diverse feedstocks for industrial fuel production. Its advantages include easy storage, transportation, and applicability in various reactors, making it a globally researched and promising method for industrial applications.

Accordingly, in the United States, institutions like lowa State University and initiatives such as the US Biochar Initiative are actively exploring fast pyrolysis for the production of biochar and bio-oil. 

  • Hydrothermal Carbonization

Hydrothermal carbonization (HTC) transforms wet biomass into hydrochar through a green process at elevated temperatures (180–250 °C) and high pressure in water. HTC is effective for wet feedstocks, including sewage sludge and agricultural residues. It produces a carbon-rich material with applications in soil improvement, energy production, and as a precursor for activated carbon, showcasing its versatility and environmentally friendly nature.

Toucan’s CHAR: First Liquid Biochar Market is launching CHAR, the first ‘liquid’ market for biochar credits, responding to increased interest in carbon credit trading. Despite the demand for biochar credits, a liquid market has been lacking, hindering investment. Toucan’s CHAR platform seeks to fill this gap by providing an automated, on-demand marketplace for biochar carbon credits. 

Further, this crypto-based platform integrates pre-screened credits from, offering transparency and a unified price for Biochar Carbon Removal (BCR) credits. CHAR aims to enhance access to capital, allowing project developers to sell credits and receive royalties while offering buyers the flexibility to retire, sell, or transfer credits. 

Stay up-to-date with what’s trending in the Global Biochar Market

Initial participants in CHAR include notable project developers like Oregon Biochar Solutions, GECA Environnement, Exomad, American Biocarbon, and BC Biocarbon. Additionally, Toucan’s introduction of CHAR represents a significant advancement in carbon markets. It provides a liquid marketplace for biochar credits and supports the growth of the biochar market in carbon dioxide removal efforts.

As the surge for promising solutions for sustainable agriculture and environmental health expands, the demand for biochar is elevating globally. With its unique ability to sequester carbon, enhance soil fertility, and mitigate climate change presents a transformative impact, it is expected the biochar market will experience substantive growth over the forecast period.


By Harshita Kumari

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    The biochar market significantly improves soil structure, water retention, and nutrient availability. Acting as a long-term carbon sink, it enhances microbial activity, reduces soil acidity, and proves valuable for various soil types. Its diverse benefits highlight biochar’s fundamental role in sustainable agriculture and environmental well-being.

    When produced and used responsibly, biochar is generally considered environmentally friendly. Its ability to sequester carbon and improve soil health makes it a sustainable option. However, proper production methods and feedstock selection are important to ensure environmental benefits.

    The potential challenges associated with biochar application arise from the variability in its properties, which are influenced by both feedstock and production methods. To optimize the benefits of biochar, a comprehensive understanding of the specific soil and crop requirements is required.