Biochar Market: Soil Fertility Boosters, Eco-Friendly Amendments & Circular Economy Trends

According to IMARC Group's latest research publication, the global biochar market size reached USD 2.2 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 6.3 Billion by 2033, exhibiting a growth rate (CAGR) of 10.9% during 2025-2033.

How AI is Reshaping the Future of Biochar Market

• Machine Learning for Production Optimization: AI algorithms analyze pyrolysis parameters—temperature, heating rate, and feedstock characteristics—to predict biochar yield and quality. Finnish company Carbo Culture implemented ML into reactors, significantly improving carbon removal efficiency from biomass through automated process optimization.
• Predictive Quality Control Systems: Machine learning models equipped with real-time sensor data monitor biochar properties including surface area, porosity, and carbon content during production. Germany's Carbonfuture uses AI-integrated sensors in slow pyrolysis operations to improve production consistency across multiple plants.
• Smart Agricultural Application Monitoring: AI-powered systems track soil improvements following biochar application, measuring changes in fertility, water retention, and crop yields. These monitoring platforms help farmers optimize application rates and timing while generating verifiable data for carbon credit programs.
• Carbon Sequestration Forecasting: Natural language processing combined with machine learning analyzes environmental data to predict long-term carbon storage potential. AI models assess biochar stability across different soil types and climates, helping producers design materials with enhanced carbon sequestration capabilities.
• Supply Chain and Market Intelligence: AI analyzes biomass availability, production costs, and market demand patterns to optimize supply chains. Predictive models identify ideal feedstock sources and production locations while forecasting market opportunities for biochar producers targeting agriculture and carbon removal markets.

Biochar Industry Overview:

The biochar industry is experiencing transformative growth driven by climate action initiatives and sustainable agriculture adoption worldwide. Google's partnership with Indian startup Varaha to purchase 100,000 tons of biochar carbon credits by 2030 represents the largest biochar deal in history, demonstrating corporate commitment to carbon removal. BluSky Carbon Inc. commenced production at its Warren, Arkansas facility with 40,000 tons annual capacity under a USD 105 million, ten-year supply agreement. In India, Samunnati's Carbon Incubator Facility launched in September 2024, empowering Farmer Producer Organizations to integrate biochar projects and transform farm residues into soil-enhancing carbon. The U.S. Climate Action Reserve introduced the Biochar Protocol in March 2024, enabling projects to generate carbon credits and improving economic viability for producers across North America and Canada.

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Biochar Market Trends & Drivers

• The agricultural sector's urgent need for soil restoration and carbon sequestration drives biochar adoption globally. India's National Mission on Sustainable Agriculture promotes biochar use on 5 million hectares of degraded land with INR 30 billion allocated over recent years. Northern states like Punjab and Haryana launched initiatives using biochar from paddy straw to address stubble burning, which improves both agricultural yields and air quality. China's Ministry of Ecology and Environment implemented programs in 2025 for rural soil restoration, with provinces like Henan and Shandong deploying mobile pyrolysis units converting waste biomass into soil enhancers. Agriculture accounts for 70% of rural household income in India, creating massive demand for sustainable soil amendments that increase water use efficiency by up to 45% and reduce soil bulk density while enhancing cation exchange capacity.
• Carbon credit markets and corporate climate commitments are accelerating large-scale biochar production. Microsoft boosted biochar investment by nearly 30% in Q1 2024 alone, purchasing 129,000 metric tons compared to 99,500 metric tons for all of 2023. SUEZ and First Climate partnered with Microsoft on a three-year contract supplying 36,000 biochar carbon removal credits from forest residues. Biochar carbon credits accounted for over 90% of durable carbon dioxide removal credits delivered in voluntary carbon markets in 2023. Pacific Biochar was recognized as the global leader in durable carbon removal deliveries, contributing 21% of total global volume. The Climate Action Reserve's protocol enables producers to access carbon revenue streams that economic analysis shows provide improved and often positive rates of return.
• Technological advancement and waste management integration are expanding biochar applications beyond agriculture. The thermal chemical process is becoming increasingly cost-effective for converting crop residues into biochar, particularly in Asia-Pacific where agricultural waste disposal presents significant environmental challenges. Biochar finds applications in water treatment, with growing demand addressing potable water scarcity through effective pollutant removal. Construction sectors are exploring biochar integration with cement and asphalt for carbon-neutral infrastructure projects. UK-based CapChar launched a public consultation for its Biochar Carbon Code in January 2025, integrating pyrolysis technology with digital monitoring, reporting, and verification software tailored for UK agriculture. Germany saw strategic support services for biochar-based CO2 removal projects emerge in September 2024, collaborating with digital verification firms to streamline carbon removal solutions across Europe.

Leading Companies Operating in the Global Biochar Industry:

• Agri-tech Producers
• Diacarbon Energy Inc.
• Cool Planet
• Pacific Biochar
• Phoenix Energy
• Biomacon GmbH
• Vega Biofuels
• Terra Char
• Avello Bioenergy
• Genesis Industries
• Interra Energy Services
• Element C6
• Carbon Gold Ltd.
• Biochar Solution Ltd.

Biochar Market Report Segmentation:

By Feedstock Type:

• Woody Biomass
• Agricultural Waste
• Animal Manure
• Others

Woody biomass represents the largest segment, driven by forestry industry byproducts such as logging residues and wood processing waste.

By Technology Type:

• Slow Pyrolysis
• Fast Pyrolysis
• Gasification
• Hydrothermal Carbonization
• Others

Slow pyrolysis leads the market owing to its efficiency in maximizing carbon retention while minimizing emissions.

By Product Form:

• Coarse and Fine Chips
• Fine Powder
• Pellets, Granules and Prills
• Liquid Suspension

Fine powder has the largest market share as it offers high surface area, making it ideal for blending with soil and compost.

By Application:

• Farming
• Gardening
• Livestock Feed
• Soil, Water and Air Treatment
• Others

Farming dominates the market, driven by the need for sustainable agriculture practices and improved soil health.

Regional Insights:

• North America (United States, Canada)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa
• North America exhibits clear dominance in the biochar market due to strong research institutions, carbon offset initiatives, and commitment to reducing greenhouse gas emissions.

Recent News and Developments in Biochar Market

• January 2025: Google partnered with Indian startup Varaha to purchase 100,000 tons of biochar carbon credits by 2030. This represents the largest biochar deal in history, aligning with Google's net-zero goals and promoting scalable carbon removal through Varaha's innovative biochar production supporting climate action and sustainable practices.
• January 2025: UK-based CapChar launched a public consultation for its new Biochar Carbon Code, aiming to set a benchmark for biochar carbon removal. The code integrates end-to-end solutions with pyrolysis technology and dMRV software, enhancing carbon sequestration and soil regeneration, tailored specifically for UK agriculture with emphasis on robust standards.
• December 2024: ofi, in partnership with LOTTE, Fuji Oil, and MC Agri Alliance, announced its first cocoa biochar project in Dankwa County, Ghana. The initiative converts cocoa pod husks into biochar, improving soil health and reducing carbon emissions, aligning with ofi's Cocoa Compass sustainability goals and 2050 Net Zero target.
• October 2024: Treehouse California Almonds and Sitos Group announced a USD 9 million biochar facility in Delano, California, set to be operational by late 2025. The facility will convert almond shells into biochar, improving soil health, reducing carbon emissions, and supporting sustainable agriculture practices in California.
• October 2024: Varaha launched India's first carbon dioxide removal credits for industrial biochar through Puro.Earth. Using corn residues, the project captures carbon while improving soil health and biodiversity. Supported by advanced MRV technology, the initiative aligns with global net-zero goals and sustainable development objectives.
• September 2024: Samunnati launched the Carbon Incubator Facility "Biochar" during its Fourth National FPO Conclave in Hyderabad. The initiative empowers Farmer Producer Organizations (FPOs) to integrate biochar projects, enhancing soil health, crop resilience, and carbon sequestration while supporting sustainable agriculture practices across rural India.
• June 2024: Supercritical launched the world's first live pricing and availability platform for biochar carbon removal projects. This innovation enhances transparency and accessibility in the carbon removal market, backed by a rigorous 118-point vetting process, supporting high-quality biochar solutions and aiding corporate net-zero strategies.

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