Markets, Production, and Growth of the US Biochar Industry Tom Miles T.R. Miles Technical Consultants, Inc. Northwest Biochar Working Group Symposium‐‐Biochar: What Is the Future for Industrial Production and World Usage? ASA, CSA, & SSSA International Annual Meeting Long Beach, California November 4, 2014
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Miles Markets, Production, and Growth of the Biochar · Markets, Production, and Growth of the US Biochar Industry Tom Miles T.R. Miles Technical Consultants, Inc. Northwest Biochar
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Markets, Production, and Growth of the US Biochar Industry
Tom Miles
T.R. Miles Technical Consultants, Inc.
Northwest Biochar Working Group
Symposium‐‐Biochar: What Is the Future for Industrial Production and World Usage?ASA, CSA, & SSSA International Annual Meeting
• Co‐products of Activated Carbon (<4,000 CY/yr)• Wood Industry Residuals (<4,000 CY/yr)
• Dry wood trim• Chipped wood waste, sawdust
• Harvested Cordwood (<20,000 CY/yr) • Small scale wood residuals (<4,000 CY/yr)• Future Feedstocks From
• Organics recycling: landscape and tree service prunings, and recycled urban wood• High ash crop residues and manures • Residuals (lignin) of biobased fuels (ethanol, butanol, acetic acid, furfurals, diesel) and chemicals production (xylitol)
• Forest residues from restoration forestry and stewardship contracts • Field Crops and agricultural residues 3
Markets Will DriveNew Forms of Feedstock Preparation
•Micro‐chips <3/8 in; 2‐4 x 4‐6 mm• Produced at harvest for wood pellet industry
• Crumbles™ <1/4 in 2 x 6 mm• Reprocessed chips or crop residues• Improved thermal processing and yield• Makes uniform char “chip”
Source: Forest Concepts LLC
Source: Peterson Pacific
11/4/2014 Markets, Production and Growth 4
MICROCHIPS CRUMBLES HOG FUEL
US Consumer and Environmental Markets• Retail Garden and Landscaping
• Packaged consumer products• Compost and industrial byproduct char• Char suited to consumer needs
•Wholesale to • Landscape services – tree service• Specialty Crops, Horticultural, and Turf
• Bulk Char to Remediation, Erosion Control• Oilfield remediation and Filtration• Stormwater filtration
• Small scale agriculture ‐ DIY• Community Supported Agriculture• Urban Farming
11/4/2014 Markets, Production and Growth 5
Many biochar producers are new to target markets. • Customer needs. What do soil scientist, agronomists, master gardeners, civil engineers advise their clients about biochar? What do they specify? What do current customers like and dislike about biochar? What are customer ideas about improvements regarding product quality, logistics, material handling, etc.
• Biochar Products. Advantages and disadvantages versus other products in the current biochar marketplace.
• Competition. Who are they? Where are they located? What feedstocks are they using? How are they pricing their product? Where are their advantages? Biochar is known to competing suppliers.
• Product mix. What are the different needs of each target industry? What processing is required and what incremental costs and quantities are required for the target markets. What specifications and labeling, demonstration and certification requirements for specific product formulations to suit these markets. Consider product processing changes, coating and agglomeration technologies.
11/4/2014 Markets, Production and Growth 6
There are Many Emerging and Potential Biochar Markets• Trees and Landscaping, Structural Soil• Nurseries, peat moss industry• Seed coating, prills and agglomerates• Green roofs• Urban Farms and Gardens• Turf Maintenance• Erosion Control and Soil Remediation• Stormwater and Water Quality• Specialized or strategic use in agriculture• Traditional horticulture, hydroponics, poultry farms• Food waste and food processors• Forest re‐vegetation• Bedding, kitty litter
Markets, Production and Growth 711/4/2014
Biochar Enhances Tree Services
No Treatment (right) 5% biochar + compost top dressingTree roots at 18 months in compacted soils.Photo: Morton Arboretum Soil Science Laboratory
(Bartlett Tree Service & Dr. Makoto Ogawa)http://www.bartlett.com/tips/Biochar.cfm
Biochar + Compost Biochar + Mycorrhiza, Composted
• Increases disease & insect resistance• Improves microbial activity and soil fertility• Increases soil water retention, and available water to tree roots• Stimulates tree growth• Improves tree survival
Trenches with Biochar + Mycorrhiza can be used to rehabilitate diseased trees, like these examples from Japan ‐>
Markets, Production and Growth 811/4/2014
Biochar in Structural Soil
ParkingForest.org Structural Soil, Cornell University www.hort.cornell.edu
Structural Soil under Permeable Pavement for larger canopy trees in parking lots.
Improves tree health, helps them resist disease• Adsorbs oils/metals from the parking lot• Filters rain water, keeps nutrients close to trees.• Increases water available to street trees.
Parking Forest PCC(Maria Cahill)
Markets, Production and Growth 911/4/2014
Biochar Replaces Vermiculite in Nurseries
PLANT HEALTH ‐Inhibits root diseaseNutrient (P) carrier for poor soils
SOIL STRUCTURE‐Vermiculite substitute
COMPOST AID ‐Peat substitute = Compost + Biochar
Ponderosa Pine in Soilless Media with Vermiculite (Left) and Biochar (Right)
2008CalforestNurseries
2009
Agronomic Benefits
Markets, Production and Growth 1011/4/2014
Biochar Enhances Green Roof Media
Photo: Ladybird Johnson Wildflower CenterAdding 7% Biochar to Scoria based media improved the effluent with 70% reduction in Nitrates, 40% reduction in Phosphates and 70% reduction of Organics than un‐amended control. Beck, D.A., G.R. Johnson and G.A. Spolek. 2011. Environmental Pollution 159: 2111‐2118.
Using 30% biochar in scoria roof media increased plant water availability by 16% .
www.facebook.com/greenanchorspdxGhost Peppers and Carolina Reapers
Markets, Production and Growth 1211/4/2014
• Use normal practices• Use stable soil amendment• Retain more water• Replace non‐sustainable materials• Reduce chemical leaching and runoff• Reduce chemical and fertilizer use• Decrease saturated hydraulic conductivity• Promote growth of microorganisms• Sequester Carbon.
Sunmark Environmental
Sand‐based turfgrass root‐zone modification with biochar, Shane R. Brockhoff, Iowa State University
Markets, Production and Growth
Biochar Improves Turf and Landscape Management for Parks and Recreation
Biochar + compost may resist Pythium blight(Photo LP Tredway)
1311/4/2014
Biochar Improves Re‐vegetation
BIOCHAR IN MULCH FOR HYDROSEEDING
www.permamatrix.com
Markets, Production and Growth 1411/4/2014
Fiber with 10% Biochar
“This was the recycled nasty soil from the steel mill that still grew vegetation. There is a line of where we sprayed PermaMatrix and where it was not applied. The other vegetation died.” ‐‐ Drew Schaefer Sunmark Environmental www.sunmarkenvironmental.com
• Creative Production and Delivery Systems for Agriculture• Delivery via Irrigation and Spraying systems• No till injection to buffer aluminum toxicity
• Product Awareness in the Market• Not “What is Biochar?” but how much, what kind and what benefit• What products will soils and crops professionals specify?
11/4/2014 Markets, Production and Growth 19
Price and Value are not established for most markets
• What can the consumer (farmer, contractor) in each market segment afford to pay for a Biochar solution? $50/acre/year? $600/CY?
• What service needs to be provided to deliver of the benefits of biochar?• Growth enhancement• Water conservation• Soil improvement• Water quality• Remediation
11/4/2014 Markets, Production and Growth 20
Estimated Value Ranking of Biochar Products$1.00‐$0.10/lbApparent Market Values
1. Activated Carbon $1.00+/lb, $300+/CY2. Partially Activated Biochar – environmental, stormwater 3. Nutrient Management $0.50/lb, $150/CY4. Carrier for Bio‐fertilizers5. Soil blends for Moisture Management $0.40, $120/CY6. Pet products: food and bedding7. Soil Amendment $0.30/lb, $90/CY8. Compost, Odor Control, $0.10, $30/CY
11/4/2014 Markets, Production and Growth 21
Biochar Producers: Individuals and Small Enterprises• Small companies (<10 employees)• Abundant enthusiasm, Unlimited optimism• Varying experience in commodity markets• Varying business (including start‐up) management experience• Continuous product development (seek high value, low volume)• Low production capacity (50‐200 lb/hr; <4 tpy, 24 CY or 1000 20 qt bags; max 50 tpy, 300 CY)
• No contracts or off‐take agreements • Low capital investment (<$1 million) • Limited cash (undercapitalized, e.g. working capital), Limited access to financing (vendor financed)
• Marginal profitability• May be extension of an existing business
11/4/2014 Markets, Production and Growth 22
Biochar Producers: Industrial Scale
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Established charcoal or activated carbon producers
Industrial gasification and combustionCo‐production, infrastructure, CHP
Byproducts and residualsBiomass Power IndustryWood Products Industry
solid wood, pellets
11/4/2014 Markets, Production and Growth
Biochar Production is Diverse• Dry Fuel – Air Dried or Less than 20% MC, pure or blended• Temperatures – 400⁰C, 600 ⁰C, 800 ⁰C• Industrial Scale
• High Carbon Flyash, 10 CY/day• Earth Systems 10‐20 CY/day• Energy and Biochar, 50 CY/Day• ICM Biochar 400 CY/day
• Farm Scale• Adam Retort 1‐2 CY/day
• Small scale –• Top Lit Burn Pile – >0.5CY/day• Small Ovens – <10 ft3/day, Firepit kiln, Jolly Roger, Gasifiers• Stoves, BBQ – <ft3/day
Markets, Production and Growth 2411/4/2014
Boiler‐Superheater
Economizer
Furnace Cells/Grate Air Heater
Multicyclone
ElectrostaticPrecipitator
Stack
High Carbon Ash
Ash
Ash/CharSource: Wellons, Inc. www.wellonsusa.com
Fan
Some Industrial Biomass Boilers Can Produce High Carbon Wood Ash With Biochar‐like Properties
Biochar Industry Faces Challenges to Growth•Market absorption – ability to take 40,000 CY per year (5,000+ tpy)•Minimum scale needed for carbonization and post processing• Co‐products – activated chars, barbeque charcoal, steam host•Who will build commodity scale manufacturing facilities?• $1million/od ton biomass per hour.
• Shale gas revolution: impact of low cost oil and gas for heat, power, fuels and chemicals (failed energy project‐ no investors for Biochar)
11/4/2014 Markets, Production and Growth 32
Some Paths Toward Future Growth• Continued biochar product development• Development of affordable Biochar solutions• Biochar product testing, approval and specification • Research and application for unique Biochar solutions• Characterization of performance of high ash feedstocks (straws, bark, manures.)
• Reduced production costs through efficient use of low quality feedstocks.
• Future biochar production will grow as co‐products of energy including liquid fuels such as light fraction of pyrolysis products and synthetic drop in diesel.
• Large resource managers – millions of tons• Competition – pellets and export markets11/4/2014 Markets, Production and Growth 33
Conclusions• Markets
• Current Producers Can Deliver to Diverse Markets• Initial markets are low volume, high value retail garden and remediation• Emerging markets are partially activated chars for stormwater and environmental uses• Costs and benefit of specific applications in agriculture are not clear
• Products• Producers capable of making a variety of biochar products• New products are formulated blends to meet customer needs. • Need guidance from soil and crop professionals
• Production• Greater potential than market.• Initial volumes are driven by low cost biomass residues. • Biochar is a co‐product to other biomass and energy products. • Current markets do not support commodity scale investments
• Growth Prospects• Slow market development; Local markets can not adsorb potential capacity• Availability of commodity biochar from large scale fuels or chemical production may change local markets
11/4/2014 Markets, Production and Growth 34
www.biochar.bioenergylists.org www.NWBiochar.org
TR Miles Technical Consultants, Inc.1470 SW Woodward WayPortland, OR 97225 [email protected]‐292‐0107503‐780‐8185 mobile
Design and development of energy and environmental processes
IndustriesBiomass energyPollution controlMaterials handlingFeed, Food and Fuels