Biochar Market Size, Share, and COVID-19 Impact Analysis By Technology (Pyrolysis and Gasification), By Application (Farming, Livestock, Power Generation, and Others), and Regional Forecast, 2021-2028

The global biochar market size was USD 149.2 million in 2020 and is projected to grow from USD 164.5 million in 2021 to USD 365.0 million by 2028 at a CAGR of 12.1% in the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with the energy & power sector witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a decline of -7.7% in 2020. The sudden rise in CAGR is attributable to this market’s demand and growth returning to pre-pandemic levels once the pandemic is over.

Biochar can be defined as a fine-grained product which is designed by organic wastes. It is derived from charcoal through the controlled heating of waste materials such as forest waste, wood waste, agricultural waste, and animal manure. This char is used widely in a soil amendment to reduce pollutants and toxic elements and also to prevent reducing moisture levels, fertilizer runoff, and soil leaching.    

COVID-19 IMPACT

Delay in Energy & Power Projects to Affect Market Dynamics Slightly

The COVID-19 pandemic has been spread in almost every country around the world. The pandemic has impacted several business sectors, such as electricity generation, manufacturing, oil & gas, mining, railway, construction, and others. The government across many countries had to impose nationwide lockdowns & various restrictions in the wake of the pandemic.

Several countries (e.g., United States, Iran, and Italy) are now using mass grave burial, while others (e.g., South Africa) are still in the early stages of considering such a disposal method due to escalating death tolls from the contagious SARS-CoV-2 infection. The supply chain has been affected, and the government has imposed travel restrictions. Several projects have been halted, and big factories have been shutdown around the world, resulting in decreased need for power. Pandemics have had a negative impact on the agriculture sector, further depressing this market.

LATEST TRENDS

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Growing Demand for Biochar in Energy Production to Augment Market Growth

This product is produced using waste materials such as forest waste, agriculture waste, and other pollutants. This is a kind of charcoal that can be highly feasible to use for the production of energy in various parts of the world. It is a cost-effective solution for the production of energy and thus, the utilization of this product this increasing rapidly around the world. The production of this char is also very easy and convenient. The rising use of this char for energy production creates lucrative opportunities for the market during the forecast period.

DRIVING FACTORS

Rising Government Policies for Environmental Protection to Boost Market Growth

The awareness about environmental protection is widely increasing across the world. People are demanding strict regulation to protect the environment from waste and carbon pollution. The government has adopted several strict policies to safeguard the environment and is encouraging the use of this product for several purposes including energy production, livestock feeding, and others.by reducing waste and leads towards achieving sustainable goal.It can be effectively utilized as a fertilizer after addition to soil. The rising regulations on safeguarding the environment encourage the global biochar market growth during the forecast period.

Growing Utilization of Biochar for Livestock Feed to Propel Market Growth

Biochar has various advantages and uses in the market. It is cost-effective, reduces waste, is pollution-free, and has a cheaper cost of raw material. It has several uses one among which is livestock feed, the utilization of this product for livestock feed is increasing rapidly across the world as it helps in improving animals’ health and provide them with organic nutrients. The use of this substance as feed helps in absorbing toxins from the animal body and helps in digestion. The farmers in some areas have begun feeding this to the cows on daily basis. Thus, increases the demand in this industry and drives growth in the market during the forecast period.

RESTRAINING FACTORS

Technological Inefficiencies and Absence of Knowledge Concerning Advantages of Product to Hamper Market Growth

Lack of absence of the sustainable char manufacturing process will continue to be one of the major constraints limiting the development potential consumption of this product. The lack of effective technology for low-emission char synthesis, particularly for distant or mobile production, has hampered the market value. The high cost of such products and 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 impede the market growth. While the commercialization of this product is still in its early stages, this hard-to-sell product's lack of consistency and standardization impedes market expansion.

SEGMENTATION

By Technology Analysis

Pyrolysis Segment Dominated Market in 2020

Based on technology, the market is segmented into pyrolysis and gasification. The pyrolysis segment is likely to dominate the market. Pyrolysis is largely preferred technology as it is inexpensive and convenient along with its can process a wide variety of feedstock. This technology helps prevent greenhouse gas emissions. This drives growth in the pyrolysis technology segment during the forecast period. 

The gasification segment is likely to witness significant growth during the forecast period. This technology produces smaller quantities of such char in a directly-heated reaction vessel with an introduced air. The demand and adoption of this technology are increasing in the market as it produces lower quantities of air pollutants. However, this process is somewhat less efficient than others. 

By Application Analysis

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Farming Segment to Dominate the Biochar Market Share through 2028

Based on application, the market is segmented into farming, livestock, power generation, and others. The farming segment is likely to dominate the market. Such char is highly utilized in farming for fertilizers as it helps in enhancing natural rates of carbon sequestration in the soil and improves the quality of the soil. It also helps in reducing farm waste along with mitigating the greenhouse gas emissions from the soil. Farmers across the world are increasingly utilizing such char which drives growth in the farming segment during the forecast period.

The power generation segment is likely to witness growth at a significant pace during the forecast period. The government across various parts of the world has encouraged the production of energy from such char as it reduces the carbon emissions and also wastes from different areas like agriculture, forest, etc.

REGIONAL INSIGHTS

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Asia Pacific has dominated the global market in 2020. The potential significance of the region in soil improvement and carbon sequestration is the primary driving force behind this sector. In addition, the region's tremendous economic and agricultural development has aided market expansion. In the Asia Pacific, China is the leading producer of such char. The region is dealing with issues such as crop residue disposal, soil pollution, quality deterioration, field burning, and greenhouse gas emissions. As a result, agro wastes into this product and employing this product as a soil conditioner in cropland is driving growth in this region to overcome these issues.

According to nature communication, widespread application of negative emission technologies (NETs) is considered essential to meet China's 2050 carbon reduction and renewable energy goals to meet the Paris Agreement's targets of limiting global temperature increases to 2°C or possibly 1.5°C cost-effectively. The total GHG emissions reduction might reach as high as 8620 Mt CO2-eq by 2050 under a "moderate" scenario that involves processing 73 percent of crop residues into char using BIPP in the near term (2020–2030) and then coordinated deployment with BECCS beyond 2030.

North America is the second-largest market for such char across the globe and is likely to see significant expansion due to the rising demand for organic food and high meat consumption.   The sector's growth has been aided by many local and large-scale producers working on a national and worldwide basis. According to USBI (US Biochar Initiative), the domestic char production represented by the survey respondents is between 35,000 and 70,000 Tons per year. The Canadian production adds 1,700 to 6,600 TPY for a North American total of 18,700 to 76,600 TPY.

A large volume of users have been in business longer than smaller users; however, 49% of all respondents have been using such char for at least two years, and most of the top tier has over five years' experience. Moreover, low feed costs for livestock are emerging in the growth in this region.

Europe is another major region for this market. The market is expanding due to the abundance of forestry waste in Europe. The European regulations on organic waste disposal and high disposal prices will help generate money from the waste, encouraging market growth. The production of this char in Europe in 2020 was approximately 17.000 tonnes, and 15 new systems had been installed and commissioned. Germany holds the largest grab in the market in Europe. The adoption of such char on a broad scale in agricultural and horticulture applications is due to properties such as carbon sequestration and soil enhancement. The government has undertaken several steps to cut yearly greenhouse gas emissions of about 55 percent by 2030, with a projection of 72 new plants by the end of 2022 to accelerate the region's growth.

The rest of the world is also witnessing significant market growth. The growing demand for this product in greenhouse gas remediation and energy generation has boosted the market's overall development. Furthermore, increased environmental concerns and awareness about this char among the general public is fueling demand for the worldwide biochar market.

KEY INDUSTRY PLAYERS

Leading Players Increasing their Concentration On New Contracts and Expanding their Reach

The global market is fragmented owing to the presence of a large number of companies in developed and developing countries. Currently,  BSEI, Airex Energy Incorporation, 3R Enviro Tech Group, American Biochar Company are leading the market. These companies are expanding their reach and focusing on securing new contracts. For instance,

• June 2021 - Airex Energy and SUEZ Group have teamed together to improve the capacity of producing biochar from biomass leftovers expecting to increase the capacity of 10,000 to 30,000 tonnes per year.

LIST OF KEY COMPANIES PROFILED:

• Airex Energy Incorporation (Canada)


• BSEI (U.S.)


• 3R Enviro Tech Group (India)


• Carbonis GmbH & Co. KG (Germany)


• Farm2Energy (India)


• Terra Humana Ltd (Poland)


• Tolero Energy LLC (U.S.)


• Oregon Biochar Solutions (U.S.)


• TerraChar (U.S.)


• Green Man Char (Australia)


• CharGrow (U.S.)


• American Biochar Company (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• In June 2021 - Wakefield Biochar inked a deal with a wholly-owned subsidiary of Vow ASA (jointly referred to as "Vow") to install an industry-scale Biogreen system at Wakefield's facility in Valdosta Georgia, USA. Drying equipment, biochar synthesis based on proprietary Biogreen technology, and conversion of CO2 neutral syngas into energy dedicated to biomass drying are all part of the USD 5.15 million turn-key systems that Vow will deliver and commission in 2022.


• In November 2021 - Vale SA announced an investment of 60 million to 70 million Chinese yuan in China Baowu Steel Group Corp. Ltd.'s pilot biochar plant project. The parties committed to working together to create steelmaking solutions that reduce greenhouse gas emissions under the terms of the MOU.

REPORT COVERAGE

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The global market research report includes a detailed biochar industry analysis and focuses on key aspects such as leading companies, technology, and leading application segments of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several drivers that have contributed to the growth of the advanced market over recent years.

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