U.K. Biochar Market Size, Share & Industry Analysis, By Technology (Pyrolysis and Gasification), By Application (Farming, Livestock, Energy Production, and Others), and Country Forecast, 2025-2032

The U.K. biochar market size was valued at USD 1.33 million in 2024. The market is projected to grow from USD 2.15 million in 2025 to USD 4.71 million by 2032, exhibiting a CAGR of 11.86% during the forecast period.

The growing emphasis on carbon sequestration as part of the nation’s broader climate change mitigation and net-zero strategies is driving market growth. The U.K. government has set a legally binding target to achieve net-zero greenhouse gas emissions by 2050, pushing both public and private sectors to adopt sustainable technologies that reduce or capture carbon emissions. Biochar, a stable form of carbon produced through the pyrolysis of organic materials, plays a significant role in this context due to its ability to sequester carbon in soils for hundreds to thousands of years. Moreover, carbon offset and credit schemes are increasingly recognizing biochar as a verifiable negative-emission technology, encouraging industries and local authorities to invest in its production and application. U.K. biochar is increasingly applied to enhance soil fertility by improving nutrient retention, soil structure, and long-term carbon stability. 

Carbon Gold, Earthly Biochar, and others are the key players in the U.K. biochar market. Carbon Gold Ltd is known for premium horticultural biochar, soil-health products, and carbon-sequestration solutions used across agriculture and landscaping. Earthly Biochar specializes in kiln-based biochar production, offering solutions for small farms, woodland owners, and carbon-removal initiatives. Onnu develops modular pyrolysis systems that convert organic waste into biochar and renewable heat, enabling distributed and community-scale production.

In the U.K. biochar market, agricultural and horticultural applications dominate demand by providing improved soil health and crop resilience for both arable farms and ornamental planting systems. For instance, in August 2025, Marks & Spencer PLC announced a partnership with Black Bull Biochar Ltd and Avara Foods, where M&S will purchase biochar carbon removal credits from Black Bull Biochar Ltd and roll out a poultry-supply-chain trial to improve bird welfare and reduce ammonia emissions.

MARKET DYNAMICS

MARKET DRIVERS:

Increasing Availability of Waste Biomass Feedstock & Growing Emphasis on Circular Economy to Propel Market Growth

One of the key drivers driving the U.K. biochar market growth is the increasing availability of waste biomass feedstocks and the imperative to valorise these materials under circular-economy and decarburization agendas. A recent study from the University of Nottingham, published in January 2025, found that by converting just food-waste digestate, a by-product of anaerobic digestion plants, into biochar, the U.K. could sequester around 93,000 tonnes of CO₂ annually by 2030, assuming half of the available digestate is used for this route. This shows how residues previously considered low-value or problematic (such as digestate, agricultural waste, or forestry residues) can become feedstocks for a high-value carbon removal product.

Moreover, the U.K. has a large untapped biomass potential. The policy briefing published by the CO₂RE Greenhouse Gas Removal (GGR) Hub stated that the U.K. has around 2 million tonnes per year of potential feedstock for biochar production, which could deliver about 4 million tonnes of GGR (greenhouse‐gas removals), equivalent to over 5% of the U.K.’s 2050 removal target under the national Net Zero strategy. This scale of feedstock availability means that biochar value chains can extend beyond niche pilot systems into meaningful deployment.

MARKET RESTRAINTS

High Production & Implementation Costs of Biochar to Restrict Market Expansion

One of the most significant restraints for the biochar market in the U.K. is the high cost associated with producing, delivering, and applying biochar at scale. A detailed U.K.-based study from the University of Edinburgh estimated that biochar production, delivery, and land application could cost between USD 189.44 to USD 497.92 per ton of biochar produced. When translated to carbon abatement, this corresponds to a marginal cost range of approximately USD 184.32 to USD 266.24 per ton of CO₂ removed.

In practical terms, such cost levels pose a major barrier for U.K. farmers, landowners, and smaller-scale producers who may not immediately capture sufficient value from yield improvement or soil benefits alone. For example, the Biochar Demonstrator Project produced by the U.K. Centre for Ecology & Hydrology and partners notes that while biochar trials show positive yield and soil-property changes, adopters in the agricultural sector raise concerns about its upfront cost and affordability. 

MARKET OPPORTUNITIES

Growing Emphasis on Carbon Removal & Sustainability Policies Drives Market Opportunities

In the U.K., a major opportunity for the biochar market lies in evolving financial and policy mechanisms designed to underpin greenhouse-gas removal (GGR) technologies, offering long-term revenue certainty and access to new income streams. For instance, the U.K. government’s recently announced GGR business model centers on a 15-year Contract for Difference (CfD) for carbon-removal deployments, coupled with capital grants covering up to half of eligible plant construction costs.

Within this framework, biochar producers will benefit because biochar is recognized as a valid removal pathway when deployed appropriately. This changes the economic equation; instead of relying solely on soil-benefit and yield enhancement, the value of sequestering carbon becomes monetized.

MARKET CHALLENGES

Small Scale Production and Feedstock Consistency to Hamper Market Growth

The U.K. biochar sector faces several structural and operational challenges that slow its transition from small-scale production to a recognized carbon-removal industry. A major issue is feedstock consistency: while the U.K. has agricultural residues, forestry by-products, and waste-wood streams, these materials are geographically dispersed and subject to competing uses such as biomass energy, composting, and animal bedding. This creates uncertainty for pyrolysis operators seeking a predictable, long-term supply. 

Scaling production infrastructure is another barrier, as most systems remain small or modular, and the capital required for larger continuous-flow pyrolysis plants is difficult to secure without stable carbon-credit revenue.

BIOCHAR MARKET TRENDS

Integration with Carbon Capture and Storage (CCS) Systems is a Key Market Trend

In the U.K., biochar is rapidly evolving from a niche soil amendment to a critical engineered carbon-removal technology aligned with CCS infrastructure. A small but growing number of pilot projects are linking U.K. pyrolysis systems with accredited carbon-removal credits. 

Meanwhile, U.K. government demonstrator funding (for example, via the GGR Demonstrators Programme) is enabling scale-up of biochar production, embedding it into the decarbonisation ladder alongside BECCS and geological CCS. As biomass feedstocks in the U.K. (forestry residues, agricultural waste) are directed into pyrolysis, the value chain is shifting: biochar becomes both a durable carbon store and a partner in broader CCS clusters.

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Segmentation Analysis

By Technology

Pyrolysis Takes the Lead as It Ensures Stable Carbon Storage, Versatile Feedstocks, and High-Quality Output

On the basis of technology, the market is classified into pyrolysis and gasification. 

In 2025, the pyrolysis segment commands with a 67.45% share. Pyrolysis is the most widely used technology for biochar production in the U.K. as it offers an efficient, flexible, and low-emission route for converting biomass into stable carbon while co-producing renewable energy. The process thermally decomposes organic feedstocks such as agricultural residues, forestry waste, and manure at moderate temperatures (typically 350–700 °C) in the absence of oxygen, producing three main outputs: biochar, bio-oil, and syngas. Microwave pyrolysis is an advanced thermal process that rapidly converts biomass into biochar using microwave energy for efficient, uniform heating. 

The gasification segment is expected to grow at a CAGR of 7.14% in the coming years. Gasification is increasingly used in the U.K. for biochar production because it offers both energy generation and carbon-rich co-products, making it attractive for circular-economy applications. In gasification, biomass is converted into syngas under controlled oxygen conditions, allowing operators to generate renewable heat or electricity while simultaneously producing biochar as a stable carbon by-product. 

By Application

Biochar is Widely Used for Farming in the U.K. as it Enhances Soil Health & Nutrient Efficiency 

In terms of application, the market is categorized into farming, livestock, energy production, and others. 

The farming is the dominant segment in the market. This segment holds the largest U.K. biochar market share of 36.53% share in 2025. Biochar is increasingly used in U.K. farming because it enhances soil health, nutrient efficiency, and carbon sequestration, addressing several challenges faced by the agricultural sector in the country. U.K. soils, particularly in regions with intensive cropping or degraded pasture, often suffer from declining organic matter and poor water retention. When incorporated into soil, biochar’s porous structure improves moisture-holding capacity, aeration, and microbial activity, leading to healthier root systems and better crop resilience during dry spells, a growing concern under the U.K.’s changing climate. U.K. biochar production increasingly utilizes agricultural wastes, such as crop residues, straw, and husks, as sustainable feedstocks for soil improvement and carbon removal.

The energy production segment is anticipated to grow at the highest CAGR of 10.30% during the forecast period. Energy production is a major application linked to biochar production because thermal conversion processes such as pyrolysis and gasification inherently generate valuable energy co-products, heat, syngas, or bio-oil, alongside the biochar itself. This makes the overall system far more economically viable, since the energy produced can be used onsite, fed into district-heating systems, or substituted for fossil fuels, reducing operational costs and emissions.

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COMPETITIVE LANDSCAPE

Key Industry Players:

Vendors Expand Their Market Presence Through Business Expansion, Strategic Partnerships, and Regional Collaborations

Carbon Gold Ltd, Circular Carbon GmbH, Oxford Culture, Carbon Hill, and others are acknowledged as major participants in the biochar market because each firm is actively involved in expansion, partnership, and collaboration.

In August 2025, Marks & Spencer PLC announced a partnership with Black Bull Biochar Ltd and Avara Foods, where M&S will purchase biochar carbon removal credits from Black Bull Biochar Ltd and roll out a poultry-supply-chain trial to improve bird welfare and reduce ammonia emissions.

In July 2024, Carbon Gold announced a partnership with Westland Horticulture (a major garden-retail supplier) to launch biochar-enriched compost and soil-improver products into the consumer/home gardener market. This expands their reach beyond commercial/horticultural markets.

LIST OF KEY U.K. BIOCHAR COMPANIES PROFILED:

• Carbon Gold Ltd (U.K.)
• Circular Carbon GmbH (Germany)
• Oxford Culture (U.K.)
• Carbon Hill (U.K.)
• Earthly Biochar (U.K.)
• Onnu (U.K.)
• Woodland Biochar (U.K.)
• Brodie Biomass (U.K.)
• Black Bull Biochar Ltd (U.K.)
• BioDynamic Carbon Ltd (U.K.)

KEY INDUSTRY DEVELOPMENTS:

• In May 2025, Black Bull Biochar Ltd announced a partnership with Ahlstrom Oyj to pilot biochar production for agricultural use, supporting the scaling of greenhouse-gas-removal via biochar soil application.
• In May 2025, BioDynamic Carbon Ltd applied for a permit to process up to 6,000 tons of green waste per year at the Ludlow facility; the project is valued at USD 2.52 million and will produce biochar for sale and carbon removal.
• In March 2025, Brodie Biomass announced the acquisition of the brand SoilFixer from ACI Innovations Ltd, enhancing its biochar and soil-improvers business.
• In January 2024, Black Bull Biochar Ltd published that PYREG GmbH will supply Black Bull Biochar with a carbonization/biochar production plant in the U.K., enabling industrial-scale production of biochar (and associated renewable heat) for GGR (Greenhouse Gas Removal).
• In July 2022, Black Bull Biochar was awarded a USD 3.84 million U.K. government contract under the “Net Zero Innovation Portfolio” to build a digital platform gathering agriculture, industry, and research partners for biochar deployment and carbon removal.

REPORT COVERAGE 

The U.K. biochar market analysis provides an in-depth study of the market size & forecast by all the market segments included in the report. It includes details on the market dynamics and Biochar market trends expected to drive the market in the forecast period. It offers information on the technological advancements, new product launches, key industry developments, operational costs, and details on partnerships, increased investments, mergers & acquisitions. The Biochar market research report also encompasses a detailed competitive landscape with information on the market share and profiles of key operating players. 

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Report Scope & Segmentation