Exclusive: The 2023 Global Biochar Market Report Projects $3.3B Market Revenue By 2025

Exclusive: The 2023 Global Biochar Market Report Projects $3.3B Market Revenue By 2025 - Carbon Herald

Two organizations leading in biochar market research and engagement, have published a report revealing key industry data and reliable growth estimates. The International Biochar Initiative (IBI) – a platform fostering stakeholder collaboration, and good industry practices to support biochar development, and the US Biochar Initiative (USBI) – a not-for-profit organization promoting the sustainable production and use of biochar, just released the 2023 Global Biochar Market Research Report, the first biochar industry-led global report since 2015.

The 2023 Global Biochar Market Report surveyed over 1000 stakeholders from all industry subsectors, and from 100 countries across the globe to provide key industry trends, highlighting the sector’s increasing role in the carbon removal scene. 

Relevant: “We Want To See The Biochar Industry Have Its Carbon Removal Impact While There Is Still Time,” Dr. Thomas Trabold, Co-Author Of Biochar Report

The report is also the first industry-produced, global research since 2015, and compliments market reports from the European Biochar Industry Consortium (EBI) from 2022, 2023, and 2024.

Some key findings from the analysis include: 

  • Biochar is the leading carbon removal approach delivering the vast majority of carbon credits. According to cdr.fyi, it delivered more than 90% of credits in 2023. 
  • Global production of biochar is at least 350,000 tonnes annually, with a compound annual growth rate (CAGR) of 91% over reported 2021 production.
  • Total Market Revenues exceeded $600M in 2023, with a CAGR of 97% between 2021 and 2023. 
  • Revenues are projected to grow to $3.3B by 2025, a figure showing the industry’s dynamic expansion. 

The global production of biochar in 2023 was estimated to come at 352,304 metric tons, an equivalent to at least 650,000 mt of carbon removals. The report underscores a strong optimism for the industry in the next two years, sharing projections for growth to 2.6 million metric tons, which would require expanded market demand and some technology advancements. 

Relevant: New EBI Report Proves Biochar Can Store Carbon For Millennia

It is also worth noting that the majority of biochar producers do not participate in the voluntary carbon market, as the research discovers. That is due to the fact that they are not eligible within existing methodologies or face other structural barriers. Biochar organizations are expected to work on these issues in order to improve access of producers to carbon markets. Still, despite limitations, biochar managed to deliver over 90% of durable CDR in 2023, having received only 12% of funding for CDR technologies, according to the report. 

The industry is expecting biochar organizations supporting the development of the industry to focus on:

  • Developing end-use markets and standards for physical biochar
  • Advocating for biochar in the CDR space and in governmental policy
  • Supporting biochar companies to improve access to capital and grants

The research also delves deep into key findings among and between global regions and within different subsectors of the biochar industry. The use of a range of technologies for biochar production is also explored along with the emphasized need for expanded education around business models, biochar benefits, carbon markets, and how to create products from biochar.

“Biochar is a system and this market research confirms the interconnectedness of market demand, carbon credits, physical biochar benefits and uses. This research also shows the many ways biochar is produced, from massive industrial plants that also produce clean energy, to smaller kilns that are helping farmers utilize crop residues and shift from crop burning. The versatility of the biochar system to solve multiple climate change problems, including but not limited to carbon removal, shines through this report,” affirmed IBI Board of Directors Chair Lucia Brusegan.

The organizations will also host a webinar presenting the launch of the 2023 Global Biochar Market Report on March 26th at 12 pm, EST. Speakers are Myles Gray, USBI Program Director and Wendy Lu Maxwell-Barton, IBI Executive Director. Participants can register for the webinar here.

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