Biochar is a negative emissions technology. Biochar is also rapidly recognized as both a great soil enhancer and - through biochar carbon removal (BCR) - the most efficient and scalable way of doing carbon dioxide removal (CDR) today.
Biomass (organic waste) slowly heated in the absence of oxygen becomes biochar. This process is known as pyrolysis and can be done from small (mobile) units to larger furnaces. Rather than decomposing or open burning of organic waste - which releases carbon and methane - the carbon is locked up for millennia instead. When buried, biochar sequesters carbon, enriches the soil and retains water. Applying biochar to soils can reduce other soil greenhouse gas emissions. In infertile soils, biochar can reduce loss of nutrients through leaching.
The startup plan entails a biochar pilot facility and optimize the (unit) economics for profitability. Validate, differentiate and carve out a niche (e.g. sell premium biochar tailored for crops such as wine, cannabis or organic produce). Add value: blend with compost, fungi or nutrients and sell as a ready to use product. Work in circular models: sell biochar back to farms that provided the biomass. Target regenerative farms, vineyards or greenhouses willing to pay a premium for soil health and sustainability.
There are some variables such as the type of biomass. Lease the equipment to keep the Capex low initially. Leasing makes it easier to pivot if the feedstock, location, or revenue model needs to change. Once profitable, scale up to other locations close to high quality biomass sources.
The revenue is pretty immediate and comes from four sources:
- Sales of biochar to agricultural/ city gardening/ farmers/ construction
- Sales of carbon credits based on biochar carbon removal (BCR)
- Tipping fees (what waste producers pay for hard to dispose of organic waste instead of paying to landfill it).
- Sales of excess thermal energy (as well as syngas & bio-oil)