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

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, CaliforniaNovember 4, 2014

NW Biochar Working Groupnwbiochar.org

Biochar Producers http://bit.ly/1sBZdpq

• Email list• Web site• Meetings • Projects

11/4/2014 Markets, Production and Growth 2

Low Cost Feedstocks Drive US Biochar Production• Industrial Char Residuals (>20,000 CY/yr)

• Combustion• Gasification

• 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


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


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.


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 ‐>


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)


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


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% .

Cao, C.T.N., C. Farrell, P.E. Kristiansenn, J.P. Rayner. 2014. Ecological Engineering 71: 368‐374.


Biochar in Urban Farms and Gardens

URBAN FARMINGGREEN ANCHORS

www.facebook.com/greenanchorspdxGhost Peppers and Carolina Reapers


• 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


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

Biochar Improves Remediation


WSU Low Impact Development Center

LOW IMPACT DESIGN:RAIN GARDENS/STORM DRAINS

ROOF DRAINS

DEMOS: 8 CitiesRESEARCH:• OSU – MS, MBA• EPA Corvallis• WSU Puyallup• Stanford/CSM

BIOCHAR IN COMPOST ROLLS AND BIO BAG FILTERS FOR SURFACE RUNOFF

Biochar Filtration Improves Water Quality


Biochar with Sand Reduces COD in Bioretention Filters for Industrial Stormwater Filtration

Photo: Kennedy Jenks, Port of Tacoma, West Hylebos Pier Log Yard

Port of Tacoma, West Hylebos Pier Log Yard

Sand + biochar

biofilters

Sand filter

Up to 80% ‐ 90% reduction in ISGP parameters: pH, Zinc, Copper, Turbidity, TSS & CODSmall Scale tests: 70% Sand + 30% Biochar to capture Copper and reduce

Chemical Oxygen Demand (COD)


Biochar Filters Many Toxics & Organics

• Heavy Metals: Copper, Zinc, Lead, Cadmium, Chromium, Mercury

• Explosives: DNT, TNT, RDX• Herbicides: Atrazine, Acetochlor, Clopyralid, Fipronil, Glyphosate, Simazine, 2,4D, Trifluralin, Diuron (DCMU)

• Benzonitrile, Phenathrene, trichloroethylene, Triazine

• Hydrocarbons• Poly chlorinated biphenyls (PCB)

• Pesticides & Fungicides: Pyrimethanil, Hexachlorobenzene, Pentachlorophenol, Lindane, Isoproturon, Endosulfan, Chlorantraniliprole, Chlorpyrifos, Carbofuran

• Polycyclic Aromatic Hydrocarbons (PAH) >50% of 4‐& 5‐ ring PAH, >40% of 2‐ & 3‐ PAH

Peer reviewed research shows the following toxic organics are sorbed by biochar.

Literature Search: sciencedirect.com11/4/2014 Markets, Production and Growth 18

Biochar Products are Diverse and Improved• Designer Biochars and Product Differentiation• Increased Biochar testing and characterization

• IBI testing protocols• Internal quality control procedures

• Product Expansion• Formulated products – nutrient enhancement• Processed products – feedstock prep, activation, blending

• 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?


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


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


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


Biochar Producers: Industrial Scale

23

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


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

60%‐80% Carbon8‐10 CY/Day Biochar200 TPD WOOD


Markets, Production and Growth 26

ICM 200 tpd GasifierWood, Straw, Stoverwww.icminc.com

Industrial Systems Convert Wood/Straw to Heat, Power and Biochar

4‐8 TPH Biomass 2‐5 MWe30‐60,000 BDT/y

Makes 40 TPD 400 CY/Day BIOCHAR

11/4/2014

Co‐production: Biochar, Energy, Biofuels, and Chemicals 250‐1,000 tpd


Energy and Heat25 MWe Combustor and Boiler

Liquid Fuel50 MGY Ethanol Plant (ICM)

www.biogreen‐energy.com

Pyrolysis Oil and Biochar1‐10 tph

11/4/2014

Amaron

Mobile Charmaker20 CY/DAY2 ton 10 CY/4 hours Fully automatedEarth Systems (Aus) USD $345,000

28

http://www.esenergy.com.au/services/charmaker/charmaker‐techprocess

MPP20/40

Markets, Production and Growth

Mobile Systems are Still Low Capacity and Too Costly

11/4/2014


Sullivan Center for Sustainable Agriculture and CSA, NH

sullivancsa.com New England Biochar newenglandbiochar.org

Small CHAB: Stationary Retort with Greenhouse Heating

1 Cord ~ 4 CY8 hr burn 1‐2 CY Biochar+ 300,000 Btuh Hot Water

11/4/2014

Farm Scale: Trough Gasifier For Bark, Litter, Sawdust

BES Australia Stephen Joseph 2014

Biomass 800 lb/hr chips, litterHeat 1.4 MMBtuhBiochar 140 lb/hr 4‐12 CY/Day Cost $150,000


Fuel

Gasifier

Hot Gas

Char

11/4/2014

TLUD BIOCHAR STOVE

Backyard Biochar with a TLUD Stove

Ray Mencke2/23/14


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)


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


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

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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