"Actionable Insights to Fuel Your Growth"

Biochar Market Size, Share & COVID-19 Impact Analysis, By Technology (Pyrolysis and Gasification), By Application (Farming, Livestock, Power Generation, and Others) and Regional Forecasts, 2023-2030

Last Updated: May 06, 2024 | Format: PDF | Report ID: FBI100750

 

KEY MARKET INSIGHTS

Play Audio Listen to Audio Version

The global biochar market size was valued at USD 184.90 million in 2022 and is projected to grow from USD 204.69 million in 2023 to USD 450.58 million by 2030, exhibiting a CAGR of 11.9% during the forecast period. By applications, the farming segment has generated a 37.8% market share in 2022.


Biochar is a charcoal-like material produced from plant materials such as grass and agricultural and forest residues that decompose at high temperatures, often during renewable energy production. During the process, the physical and chemical properties of the plant material change into a highly porous, stable, carbon-rich material. Pyrolysis is widely known as the manufacturing process of producing charcoal from wood. Gasification is a basic process in which organic carbonaceous materials are converted into carbon monoxide and carbon dioxide at high temperatures with oxygen and steam.


COVID-19 IMPACT


COVID-19 Pandemic Caused a Decrease in Demand Due to a Fall in Investment in Upcoming Plants


The sudden outbreak of COVID-19 across the globe led to the termination of all normal daily activities like going to work, gathering, meetings, and commuting between countries even stepping a foot outside the house.


However, the suggestions of this pandemic crisis have affected many industries in diverse ways, such as the halt of domestic industrial procedures, decreased production, disruptions in value chains, raw material shortage, no international transactions, imports and export stopped, unreachability of new orders and clients, lack of operating staffs, and many others things.


COVID-19 has expressively impacted the production plant market due to supply chain disruption and a fall in investment in this technology of upcoming plants in the European Union. The overall energy demand has broadly decreased in this region due to the pandemic, as most industries and commercial sectors were closed.


LATEST TRENDS


Request a Free sample to learn more about this report.


Supportive Government Policies for Environment Protection to Boost Market Growth


Carbon emissions have increased considerably in recent years due to rapid industrialization, leading to climate change. High population growth across the globe, flourishing industrial sector, and growth in infrastructure development activities led to a huge rise in electricity demand.


Production of biochar involves heating organic matter without oxygen in pyrolysis. It can be carried out in a small household stove, or it can be an industrial operation. Either way, pyrolysis doesn't produce carbon dioxide like ordinary, oxygen-fueled fire. Furthermore, the production is promising because it captures the CO2 absorbed by plants and, by baking it down into a charcoal-like substance added to soil to increase fertility. Therefore, the improved food production capacity can reduce the requirement to clear more land for the purpose of agriculture, and more efficient cookstoves could reduce the gathering of wood from already shrinking forests.


Governments across the globe are striving to lower the impact of climate change by enhancing renewable technology penetration. Several global tax incentives programs, such as state sales tax exemption, state income tax credit, corporate income tax deduction, and local property tax exemption, are offered by governments to encourage renewable adoption. Additionally, many federal-level incentives are available to businesses, nonprofit organizations, and municipal projects. These include a modified accelerated cost recovery system (MACRS), tax incentives for subsidies, and business tax incentives. Government schemes, such as Renewable Heat Incentive (RHI), have generated substantial interest in developing countries markets. Such schemes are expected to drive the market soon.


DRIVING FACTORS


Environment Related Concerns are Likely to Fuel the Market


Biochar is mainly produced from the waste materials of biomass, which is suitable for production, including crop residues such as field and processing residues, food and forest waste, and animal manure. Abundant agricultural, municipal, and forest biomass are burned, due to which a large amount of CO2 and methane is released, which pollute surface and local ground water.  


If solid waste is not treated properly, it could negatively impact the environment as the global accumulation of agricultural waste is around 2 billion tons in a year, whereas forest waste accounts for about 0.2 billion tons, municipal waste for about 1.7 billion tons, and industrial waste for 9.1 billion tons. The usage of biomass-related solutions globally is increasing, owing to the increasing prices of primary fuel for energy production. The global demand for biochar as a fuel is increasing significantly due to the high industrial and commercial demand. Moreover, the easy availability of biomass sources and low production cost has led to its higher consumption in the industrial sector.


Growing Demand for Climate Smart Agriculture to Increase Soil Fertility will Propel the Market


The product is manufactured from the residue of biomass, sawdust, and agricultural waste materials. Therefore, this is the solid product remaining after biomass is heated to temperatures typically known as pyrolysis. The biomass suffers from its high moisture content and low energy density, leading to major issues like high transport costs and poor grinding ability. The product produced from biomass pyrolysis can be a better fuel than biomass, addressing the key issues associated with direct biomass utilization.


According to World Bank data, three of the biggest challenges of the twenty-first century are the need to nearly double food production by 2050, to adapt and build resilience to a more challenging climatic environment, and simultaneously achieve a substantial reduction in atmospheric greenhouse gas concentrations. The rising interest in climate-friendly agriculture focused on solutions to a few challenges has sparked curiosity about using biomass to combat climate change while improving soil fertility. Moreover, it is relevant for developing nations and could address global challenges related to climate change.


RESTRAINING FACTORS


Lack of Knowledge Concerning the Manufacturing Process of Products to Hamper Market Growth


Biomass is used as the feedstock in the pyrolysis reactor, which has a set heating and gas flow rate, residence duration, and temperature. Following that, the biomass-residue product can be created. There are certain by-products of this process, such as gas and bio-oil. However, when the product is applied to agricultural land, several prior research identified the following drawbacks: loss of land due to erosion, soil compaction during the application, risk of contamination, removal of crop residues, and reduction in worm life rates; these factors are creating a negative impact on the environment and could affect the market.


Biomass is used as the feedstock that has a specified heating and gas flow rate, residence time, and temperature. Further, the negative impact of the product, such as the loss of land due to erosion, soil compaction during the application, risk of contamination, removal of crop residues, and reduction in worm life rates could affect the market.


Lack of knowledge of the sustainable char manufacturing process will continue to be one of the major constraints limiting this product's development and potential consumption. 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 biochar 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 Holds the Dominant Market Share Owing to its Inexpensive and Convenient Aspects


Based on the technology, the market has been bifurcated into gasification & pyrolysis. Pyrolysis is likely to dominate the market owing to its widely preferred technology because it is inexpensive, convenient, and can handle various feedstocks. This technology helps to avoid greenhouse gas emissions. This drives the growth in the Pyrolysis Technology segment over the forecast period.


The gasification segment is expected to show significant growth during the forecast period. This technology produces smaller quantities of such char in a directly heated, air-introduced reaction vessel. Market demand and acceptance of this technology are increasing as it produces lower levels of air pollutants. However, this method is slightly less efficient than others.


By Application Analysis


To know how our report can help streamline your business, Speak to Analyst


Agriculture Segment Holds the Dominant Share due to its Extensive Use in Agriculture for Fertilizer


Based on application, this market is segmented into Agriculture, Livestock, Power Generation, and Others. The agricultural segment is likely to dominate the market. Such charcoal is used extensively in agriculture for fertilizer as it helps to increase the natural rates of carbon in the soil and improves the quality of the soil. It also helps reduce agricultural waste and lowers greenhouse gas emissions from the soil. Farmers worldwide are increasingly using such char, driving the growth in the agriculture segment during the forecast period.


The power generation segment is expected to grow significantly over the forecast period. Governments in different parts of the world have encouraged the generation of energy from such coal as it reduces carbon emissions from different sectors like agriculture, forestry, etc.


REGIONAL ANALYSIS


Asia Pacific Biochar Market Size, 2022 (USD Million)

To get more information on the regional analysis of this market, Request a Free sample


Asia Pacific held the dominant share of the global market. The potential importance of the region for soil improvement and carbon sequestration is the main driver behind this sector. In addition, the region's tremendous economic and agricultural development has contributed to the market expansion. In the Asia Pacific region, China is the leading producer of such char. The region addresses crop residue disposal, soil pollution, quality degradation, slash-and-burn, and greenhouse gas emissions. As a result, agricultural waste into this product and the use of this product as a soil conditioner in farmland is driving growth in this region to overcome these problems.


According to Nature Communication, the widespread application of zero-emission technologies (NETs) is essential to achieve CO2 reduction and renewable energy goals to meet the Paris Agreement goals of cost-effectively reducing global temperature rise to 2°C or possibly limiting 1.5 °C. Reductions in total GHG emissions could reach up to 8620 MtCO2eq by 2050 if a “moderate” scenario calls for charcoal processing 73 percent of crop residues with BIPP in the short term (2020-2030) and then coordinating deployment with BECCS will be beyond 2030.


North America is the second largest market for char in the world and is expected to expand significantly due to increasing demand for organic food and high meat consumption. The sector's growth has been supported by many local and large manufacturers operating on a national and global basis. According to USBI, the domestic char production represented by the survey participants ranges from 35,000 to 70,000 tons annually.           


KEY INDUSTRY PLAYERS


Key Participants are focusing on enhancing their Product Capacities to Gain a Competitive Edge


The market for biochar is highly fragmented, with the presence of numerous players. Chardust Ltd, Aries Clean Energy, Airex Energy, and Farm2Energy are the leading players with a strong presence across different countries. Their operational plants' success will help them acquire contracts and gain a market share in the coming years. In June 2021, Airex Energy and SUEZ Group partnered to provide solutions to regions and industries on their path toward carbon neutrality. The two groups' expertise will enable them to industrialize the recovery of biomass residues into biochar (a stable form of organic carbon), essential to urban and agricultural soil resilience, vitality, and fertility.


The other key industrial wood pellet market players are Oregon Biochar Solutions, Carboni GMBH, Chargrow, Charline, and SAFI ORGANICS. The competition among top players in the market is very high as they are targeting to expand across regions. The one with unique offerings in technology, portfolio, design, efficiency, and more will capture the maximum end-user attention.


LIST OF KEY COMPANIES PROFILED: 



KEY INDUSTRY DEVELOPMENTS:



  • November 2021 - Vale announced an investment of 60-70 million Chinese yuan in China Baowu Steel Group Corp.'s biochar pilot project. Ltd known. The parties committed to working together to develop a steelmaking program that reduces greenhouse gas emissions under the terms of the MoU.

  • June 2021 - Wakefield announced that it signed an agreement with Vow ASA to install an industrial-scale Biogreen system in Georgia, USA. It will convert biomass and bioresidue into high-quality biochar, which will address the fast-growing high-quality biochar market.

  • June 2021 - SUEZ Group announced that it has merged with Airex Energy to offer solutions to carbon neutrality to different industries. Their expertise will help them to industrialize the recovery of biomass residues into biochar, which is important for the resilience and fertility of agricultural soils.

  • April 2021 - Drax announced that it had completed the acquisition of the share capital of Pinnacle Renewable Inc. Pinnacle will operate as a subsidiary of Drax and remain headquartered in British Columbia. Over 480 Pinnacle employees, including its existing leadership, will be welcomed into the Drax Group.

  • July 2020 - Enviva acquired all of the limited liability interests in Georgia Biomass Holding LLC for total consideration of USD164.0 million in cash after accounting for certain adjustments.


REPORT COVERAGE


An Infographic Representation of Biochar Market

To get information on various segments, share your queries with us



The market report provides a detailed analysis of the Biochar market share and focuses on key aspects such as leading companies, types, and system applications. Besides this, the report offers insights into market trends and highlights key industry developments. In addition to the abovementioned factors, the report encompasses several factors that have contributed to the market growth over recent years.


REPORT SCOPE & SEGMENTATION 




















































  ATTRIBUTE



  DETAILS



Study Period



2019-2030



Base Year



2022



Estimated Year



2023



Forecast Period



2023-2030



Historical Period



2019-2021



Growth Rate



CAGR of 11.9% from 2023 to 2030



Unit



Value (USD Million), (Tons)



Segmentation



By Technology, By Application, and By Region



Segmentation



By Technology



  • Pyrolysis

  • Gasification



By Application



  • Farming

  • Livestock

  • Power Generation

  • Others



By Region



  • North America (By Technology, By Application, and By Country)

    • U.S. (By Application)

    • Canada (By Application)



  • Europe (By Technology, By Application, and By Country)

    • Germany (By Application)

    • Scandinavia (By Application)

    • Austria (By Application)

    • Sweden (By Application)

    • Switzerland (By Application)

    • Rest of Europe (By Application)



  • Asia Pacific (By Technology, By Application, and By Country)

    • China (By Application)

    • Australia (By Application)

    • Rest of Asia Pacific (By Application)



  • Rest of the World (By Technology, By Application)






Frequently Asked Questions

Fortune Business Insights says that the global market size was USD 184.90 million in 2022.

In 2020, the Asia Pacific market value stood at USD 148.49 million.

The global market is projected to grow at a CAGR of 11.9% in the forecast period.

The farming segment is expected to be the leading segment in this market.

The global industry size is anticipated to reach USD 450.58 million by 2030, growing at a substantial CAGR of 11.9%.

Rising government policies for environmental protection augmented the market growth.

BSEI, Airex Energy Incorporation, 3R Enviro Tech Group, American Biochar Company are the leading players in the market.

Seeking Comprehensive Intelligence on Different Markets?
Get in Touch with Our Experts

Speak to an Expert
  • 2019-2030
  • 2022
  • 2019-2021
  • 170

Personalize this Research

  • Granular Research on Specified Regions or Segments
  • Companies Profiled based on User Requirement
  • Broader Insights Pertaining to a Specific Segment or Region
  • Breaking Down Competitive Landscape as per Your Requirement
  • Other Specific Requirement on Customization
Request Customization Banner

Energy & Power Clients

Fujifilm
Nikon
Sumitomo
Caterpillar
Abb

Client Testimonials

“We are quite happy with the methodology you outlined. We really appreciate the time your team has spent on this project, and the efforts of your team to answer our questions.”

- One of the largest & renowned medical research centers based in the U.S. on a report on the U.S. NIPT Market.

“Thanks a million. The report looks great!”

- Feedback from a consultant on a report on the U.S. Beef Market.

“Thanks for the excellent report and the insights regarding the lactose market.”

- Brazil based company specializing in production of protein ingredients.

“I liked the report; would it be possible to send me the PPT version as I want to use a few slides in an internal presentation that I am preparing.”

- Global Digital Services Agency on a report on the Global Luxury Goods Market.

“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”

- U.S.-based biotechnology company focussing on treatment of chronic pain.

“Kudos to your team. Thank you very much for your support and agility to answer our questions.”

- Europe-based provider of solutions to automate data centre operations.

“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”

- India-based manufacturer of industrial and specialty intermediates with a strong global presence.

“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”

- One of the largest cosmetics company in the world.

“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”

- U.S. based startup operating in the cultivated meat market.

“We received the below report on the U.S. market from you. We were very satisfied with the report.”

- Global hearing aids manufacturer.

“I just finished my first pass-through of the report. Great work! Thank you!”

- U.S. based solar racking solutions provider.

“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”

- World’s leading advisory firm.

“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”

- Germany based machine construction company.

“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”

- Japanese manufacturing company of stationery products.

“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”

- One of the Leading Food Companies in Germany

“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”

- Intuitive Surgical

“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”

- Major Food Company in Japan

“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”

- Ziering Medical

“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”

- Major Manufacturer of Precision Machine Parts in India

“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”

- Hewlett-Packard

“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”

- Global Management Consulting Firm

“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”

- UK-based Start-up in the Medical Devices Sector

“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”

- One of the Largest Companies in the Defence Industry
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . Privacy.
X