Biochar Commercialization: The Pathway Forward
Transcript of Biochar Commercialization: The Pathway Forward
Biochar Commercialization: The Pathway Forward
Biochar Markets
Matt Delaney
Delaney Forestry Services
NW Biochar Working Group Meeting
Salem, OR
December 11, 2014
Agenda
Market OverviewMarket SegmentsKey Stakeholders and Roles
• International Biochar Initiative: – http://www.biochar-international.org/node/5017
• New Market (800 tons produced 2013)
• ~$1 million per year
• Emerging Sector
State of the Biochar Market
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Organizations Involved
• Applied research
• Demo projects
• Established pathways Source: www.rffi.org
• Enhance low-value biomass utilization
• Create new markets for non-timber based forest products
• Support job creation in rural communities
• Enhance water quality in priority watersheds
United States Forest Service: Biochar Interest
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Slash-pile burn in Oregon (photo
courtesy of Kathy Storm OFRI)
• Biochar for enhanced wheat production (USDA ARS, WA)
• NRCS—biochar produced at the farm scale (CA)
• Biochar for re-vegetation of mine spoils (Roseburg, OR)
• Redwood Forest Foundation—semi-mobile biochar production (CA)
Interest of Agencies--NRCS, EPA, USDA ARS
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Market Status
• Biochar education/outreach
• Capital Press (2/6/14)
http://www.capitalpress.com/apps/pbcs.dll/article?AID=/20140206/ARTICLE/140209932
Graph: Jim IppilitoUSDA-ARS-Northwest Irrigation and Soils Research Laboratory ID
Market Status
• 2014 Message: people know about biochar
• Current challenges: customer needs, price, specs, supply chains
Agenda
Market OverviewMarket SegmentsKey Stakeholders and Roles
• Agriculture, horticulture, filtration, remediation
Market Segments
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Images courtesy of John Miedema, Autumn Freer, Tom Miles, Steve Griffith
• Enhance plant productivity when used as a soil amendment
• Filter pollutants out of water (bioswales, ag runoff, stormwater, wastewater)
How is it being used?
Image courtesy of John Miedema
Image courtesy of Walking Point Farms
Market Segments in the PNW—Filtration
• $6.3 million for bioswales—Bioswales Portland
• $4.5 million in Portland—Stormwater filtration media
• $4.0 million filtration media—1200z permits
• Activity highlights
Developing Pathways
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BioLogical Carbon
• Based in Philomath, Oregon
• Biochar media & systems
• Work on stormwater filtration
Freer Organics
• Based in Idaho• Bokashi and biochar blends• Vermicastings, vineyards,
orchards• Bioswales—Idaho Department
of Transportation
http://freerorganics.com/
Redwood Forest Foundation Inc.
• Based in Mendocino, CA
• CIG Grant
• In woods processing of forest biomass
http://rffi.org/Biochar.html
University of Nevada--Reno
• Dusty Moller
Wood Utilization Manager
Business Environmental Program
Small Business Development Center
University of Nevada--Reno
Agenda
Market OverviewMarket SegmentsKey Stakeholders and Roles
Process: Market Development
Research Demo Regulatory FinancialCommercial Production
Research Demo Regulatory FinancialCommercial Production
Key Stakeholders and Roles
UniversityARS
EntrepreneurGrant—State, Federal, Foundation
Permits: Water, Air, Product Labels
EntrepreneurBusiness Partner(s)Agreements
Agency Permitting and Certification
• OR Department of Agriculture—product labelling, growth claims, labelling, etc.
• Air Permit? Water Permit?
• OMRI, IBI, EU
End Product Users
• Who are the major existing customers for each sector?
• What are customers concerned about? – Fertilizer and input costs?
– Fines for exceeding benchmarks, capital cost upgrades, cost of materials, avoided costs?
Customers
Customer Needs: Stormwater Sector
• 2012 OSU stormwater 1200z permit holder survey – Dr. David Smith– Anne Simmonds, Camille Moyers (OSU
undergraduates)
• Are current 1200z permitted industries willing to switch to biochar?– All said yes, at the “right” cost, and
performance
• What is the “right” cost?– Some demonstrate the willingness to
switch for 25% increase in cost, for better performance.
– “I’ll pay whatever—so long as it works”
Biochar Producers & Suppliers
• Specifications and particle size: how does it vary by customer type?
– Agriculture/Horticulture: pH, fertilizer costs, fine size fractions
– Filtration: pore size, ability to capture pollutants, larger size fractions
Other Products on the Market
• Filtration: how does biochar compare to other products on the market?– Phoslock—to remove phosphorus http://www.sepro.com/phoslock/
– Sedimite—to remove contaminants, creosote from mill ponds http://sedimite.com/results/
– Granulated Activated Carbon
Challenges for Agriculture/Horticulture
• Existing soil amendment costs
• “That biochar stuff is expensive”
• Water holding capacity—is there value?– Earlier germination
– Lower irrigation costs?
Home Garden/Landowner Use
• Low cost production options
• Scale
• Backyard Biochar.net– http://backyardbiochar.net/
Images courtesy of Kelpie Wilson and Tom Miles
Good Resources for Information
• NW Biochar Working Group: http://nwbiochar.org/
• Online groups: – LinkedIn: Biochar Offsets
– Yahoo
• International Biochar Initiative http://www.biochar-international.org/
Conclusions
• Markets
• Activities--research, product development
• Market Development Process & Barriers
• Stakeholder Roles
• End Users“An Elegant Matrix…”
Photo: OSU Extension
Questions?
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Matt Delaney
Delaney Forestry Services
(541) 990-4306
1:00 pm—Questions for Breakout Session
1. What are the key market barriers for development of a NW biochar industry?
2. What are the resources needed to achieve these goals?
– Grants, financing, business planning, demo projects, other?
3. What are the opportunities to advance the collective impact of the NW Biochar Working Group?
3:00 pm—Possible Categories: Priorities and opportunities for
collective action
1. Standardization, product grades, certification
2. Customers, sales, marketing
3. Demo projects, research
4. Other?