Global Biochar Carbon Dioxide Removal Market Development

09
07,
2026
Author:mingjie

Against the backdrop of the global net-zero goal, biochar carbon dioxide removal (CDR) has become an indispensable technological path for addressing climate change. Among numerous carbon removal technologies, biochar stands out as the most cost-effective permanent removal technology in companies' current CDR procurement portfolios due to its high technological maturity, low unit cost, strong scalability, and the combined benefits of soil improvement and waste treatment.

Based on raw material source, biochar can be divided into five categories:

  • Agricultural and forestry waste-based: The most mainstream category, with an organic carbon content of 40%–90%, and all methodologies are approved.
  • Municipal and industrial waste-based: Requires strict control of pollutant thresholds.
  • Livestock and poultry manure-based: High nutrient content, with significant methane emission reduction benefits.
  • Specialty raw material-based: Invasive species, algae, etc., added in VM0044 v2.0.
  • Specialty raw material-based: Specially cultivated energy crops, prohibited by mainstream methodologies.
Continuous Biomass Carbonization Plant for Sustainable Agricultural Waste Management

Biochar Projects

Based on end-use, biochar projects are divided into carbon sinks and non-carbon sinks. Applications directly used for carbon credits include soil improvement and agriculture, building materials (concrete, asphalt), and permanent geological sequestration. Applications in environmental remediation and adsorption, energy and fuel, plastic polymer composites, and livestock farming are excluded from the carbon sink category due to insufficient carbon sequestration cycles or end-of-pipe release risks.

The climate benefits of biochar projects consist of two parts: carbon dioxide removal (CDR) and emission avoidance. CDR refers to the long-term sequestration of stable organic carbon from biochar. Emission avoidance refers to avoiding methane and black carbon emissions from feedstock disposal.

Verra VM0044 calculates both types of benefits, while pure removal frameworks such as Puro.earth, Gold Standard, and EU CRCF only calculate CDR. This difference directly affects the verifiable carbon content of a project. The total carbon content of the same project under the Verra system is typically 20%–50% higher than that under the pure removal system.

Biochar Production Processes

Based on production technology level, biochar equipment can be divided into high-tech continuous facilities and low-tech batch facilities.

The core processes in biochar production include pyrolysis and gasification. Baking and hydrothermal carbonization are explicitly prohibited by methodology. The former produces products with insufficient carbon stability (H/C ratio typically > 0.7), while the latter lacks scientific validation for persistence and has uncontrollable emissions. Slow pyrolysis (350–600℃) is the mainstream process for carbon sink projects due to its high biochar yield (25%–40%) and good carbon stability. Gasification (700–1200℃) offers even higher carbon stability but a lower yield (10%–20%), making it suitable for large-scale projects with electricity/heat resources.

Biomass Carbonization Plant

Large scale biochar production line must simultaneously meet four standards: full recovery and utilization of pyrolysis gas, fossil fuels used only for start-up, supporting pollution control devices, and real-time monitoring of production temperature.

Biochar Carbon Dioxide Removal Market

The global biochar carbon credit market is experiencing rapid growth, with technology companies doubling their CDR purchases for two consecutive years. Trading volume is projected to increase by over 100% in 2024-2025. By the end of 2025, the global cumulative issued biochar carbon credits will be approximately 3-5 million tons of CO₂e. Compared to the emission reduction potential of 1 Gt CO₂e/year, the actual developed volume is less than 5%, indicating significant growth potential. This supply-demand imbalance supports price premiums, with Puro CORC prices rising from approximately $80/ton to $100-150/ton over the past two years.

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