Contextualizing Biochar as a Renewable Energy Resource
for Climate Mitigation Action

Hari Srinivas
One-Pager Series E-227

Introduction

Biochar, a carbon-rich material produced through the thermochemical conversion of biomass, offers a unique bridge between renewable energy production and environmental stewardship. Unlike other renewable energy technologies that focus solely on generating power, biochar systems can simultaneously produce usable energy, lock away carbon, and deliver tangible benefits to agriculture and ecosystems.

To fully understand its potential, biochar must be seen not in isolation but within the broader renewable energy and circular economy landscape. The following five dimensions outline how biochar fits into this framework.


Figure 1: Biochar and Renewable Energy

    1. Production Link to Renewable Energy

    Biochar production is inherently tied to renewable energy generation, as it is created through processes that also yield usable renewable fuels.

  • Biochar is typically produced through pyrolysis, gasification, or other thermochemical processes that heat biomass in low-oxygen environments. These processes yield syngas and/or bio-oil alongside the solid biochar.
  • The syngas and bio-oil are renewable fuels that can be used for electricity, heat, or liquid fuel production, displacing fossil fuels.
  • In this way, biochar is not just a byproduct - it is part of a renewable energy generation cycle, where energy is harvested and a stable carbon-rich residue is created.

    2. Carbon Negativity within Renewable Energy Systems

    Unlike most renewable energy sources, biochar can go beyond carbon neutrality and achieve net carbon removal.

  • Most renewable energy sources (solar, wind, hydropower) are carbon-neutral at best. Biochar has the rare potential to be carbon-negative.
  • When biomass grows, it captures atmospheric CO?. Converting it to biochar locks carbon into a stable form that can persist in soils for centuries, while the energy co-products provide low-carbon energy.
  • This dual benefit positions biochar as a unique renewable energy technology with long-term climate mitigation potential.

    3. Integration into Circular Bioeconomy Models

    Biochar supports a circular use of resources, turning biomass residues into both clean energy and valuable agricultural amendments.

  • In agricultural residues management, producing biochar from crop waste turns what is often burned or landfilled into both renewable energy and a soil enhancer.
  • In forestry and land management, using woody residues for biochar production can generate rural renewable energy while improving soil health and reducing wildfire fuel loads.
  • This fits into waste-to-energy and circular economy approaches that aim for maximum value extraction from biomass.

    4. Synergy with Distributed Renewable Energy Systems

    Biochar production systems can be adapted to decentralized, small-scale operations that meet both local energy and agricultural needs.

  • Small- and medium-scale pyrolysis units can operate off-grid in rural or developing areas, providing local renewable electricity and heat while producing biochar for farming communities.
  • This positions biochar systems as decentralized renewable energy solutions that also enhance food security and land productivity.

    5. Policy and Market Framing

    Biochar can be positioned in energy policy as both a renewable energy source and a climate change mitigation tool.

  • In the renewable energy policy sphere, biochar can be recognized not just under biomass energy categories, but also in carbon credits, soil carbon sequestration programs, and renewable heat incentives.
  • This opens pathways for stacked revenue streams: energy sales, carbon credits, and agricultural benefits.

    Facts and Figures Market and Industry

    1. The global biochar market was valued at approximately USD 702 million in 2023 and is projected to exceed USD 2.54 billion by 2032.

    2. Another estimate places the 2023 market size at USD 541.8 million, with an expected increase to USD 1.35 billion by 2030, growing at a compound annual growth rate (CAGR) of 13.9 %.

    3. In 2024, the biochar market stood at around USD 763.5 million, and is forecasted to reach USD 2.1 billion by 2032, with a CAGR of about 13.6 %.

    4. A supply crunch is pushing prices upward: prices rose 18 % in 2024, yet buyers securing long-term offtake contracts can save up to 31 % compared to spot purchases. Carbon Sequestration Potential

    5. Biochar accounts for 87-92 % of all delivered carbon removals in the biochar carbon removal sector.

    6. With current biomass residues, up to 3 billion tonnes of CO? per year (equivalent to ~6 % of global emissions) could potentially be sequestered using biochar over a century. Broader estimates span 0.3 to 4.9 Gt CO?/year.

    7. Biochar can sequester carbon in soil for centuries to millennia, retaining about 50 % of the biomass's original carbon in a stable form.

    8. In a soil, 97 % or more of biochar's carbon is highly recalcitrant and persists for centuries.

    Environmental and Agricultural Benefits

    9. Biochar has the potential to reduce GHG emissions by 1.36 to 3.00 gigatons by 2050. It could also generate net operational savings between USD 333 billion and USD 663 billion

    10. Applied at 2.5 % to 20 tonnes per hectare, biochar can notably improve soil fertility and water retention-but depending on local contexts, it costs USD 300-7000 per tonne in developed countries

    Summary Snapshot

    Category Key Highlights
    Market Growth US$0.5-0.8B (2023) → US$1.3-2.5B (2030+)
    Carbon Removal Up to 3 Gt CO2 per year potential; highly stable soil carbon sequestration
    Environmental Impact Multi-billion USD operational savings potential; soil and water benefits
    Cost & Application Recommended rates 2.5-20 t/ha; prices vary widely and may limit uptake in some regions

    Conclusion

    Positioning biochar as a renewable resource reframes it from a niche soil amendment to a multi-benefit climate and energy solution. Its ability to generate renewable energy, sequester carbon, and support agricultural productivity makes it an important component of a future low-carbon economy. By integrating biochar into renewable energy policy, market incentives, and distributed energy systems, we can unlock its full potential to deliver both environmental and socio-economic gains.
    Member of
    Japan Biochar Association

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