U.K. Biochar Market Size, Share & COVID-19 Impact Analysis, By Technology (Pyrolysis and Gasification), and By Application (Farming, Livestock, Energy Production & Others), and Country Forecast, 2023-2030

The U.K. biochar market was worth USD 1.96 million in 2022 and is projected to grow at a CAGR of 15.5% during the forecast period.

Biochar is a carbon-rich material created by heating organic materials under low oxygen conditions. It has the potential to reduce carbon dioxide (CO2) levels in the atmosphere, helping to meet the targets of greenhouse gas emissions reduction. During this process, the physical and chemical properties of the plant material transform into a stable, highly porous, carbon-rich material called biochar.

In the U.K., biochar, which is also called black carbon, has made significant progress in reducing global warming, soil nutrient loss through filtration, sequestering atmospheric carbon in the soil, increasing agricultural and horticulture productivity, reducing the bioavailability of environmental pollutants and becoming value-added products supporting the bio-economy. It has become a marketable biological product that can be used in agriculture, industry, and the energy sector and is mostly produced from agriculture and other bio-waste. Therefore, biochar production is considered to improve land ownership and provide additional income opportunities in the U.K., thus driving the growth of this market.

The COVID-19 pandemic significantly impacted the market due to supply chain disruptions and a decline in investment in this technology from upcoming plants in the European Union. Governments, in the pursuit of post-pandemic economic recovery, viewed investments in this sector as an opportunity to create jobs, stimulate economic growth, and simultaneously address climate concerns. Virtual collaboration became the norm, potentially accelerating the development, advancement, and sharing of innovative ideas and technologies.

U.K. Biochar Market Trends

Government Initiatives Encourage Innovations to Reduce Greenhouse Gas Emissions and Drive Market

Government policies and initiatives in the U.K. aim to promote sustainable agricultural practices and reduce greenhouse gas emissions. This factor has increased the demand for black carbon as a soil amendment to improve soil fertility and reduce emissions from agricultural activities. It has been shown to benefit agricultural ecosystems, improving productivity, water retention, and nutrient recycling and retention.

In 2021, a new Urban Biochar sustainable materials and greenhouse gas reduction demonstrator was installed at a horticulture plant on the outskirts of Birmingham. The project is being sponsored by the Energy and Bioproducts Research Institute (EBRI) at Aston University after receiving funding from Greater Birmingham's Local Growth Fund (GBSLEP) and Solihull Local Enterprise Partnership (LGF).

In the U.K., biochar can be produced from biomass derived from biological waste, including biodegradable agricultural and municipal waste or renewable biomass plantations. When it is added to soil, some of it decomposes, releasing carbon into the atmosphere. Scientists are now studying the properties of carbon in soils spanning centuries to elucidate the factors necessary for long-term stability.

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U.K. Biochar Market Growth Factors

Rise in Demand from the Agricultural Sector Resulting in a Favorable Market

Agriculture in the U.K. is fundamental to the country's food security, generating economic benefits and shaping its rich and diverse landscape. Food remains the primary goal of agriculture. Agriculture plays a crucial role in environmental management, covering more than 70% of the U.K.'s land area, with most arable land located in the lowlands of south-east England, where temperatures are relatively warm and rainfall is low. Developed agriculture will increase the use of black carbon to grow crops, directly and indirectly, based on its natural nutritional content and nutritional capacity.

As soon as biochar is introduced into the soil, it begins to interact with the soil's chemical properties. In addition to improving soil fertility in the long term, its ability to store carbon and nitrogen can reduce immediate and long-term environmental degradation, minimizing its adverse effects on human beings and animal health due to its essential properties. Biochar improves the soil's nutrients and agrochemicals retention capabilities, reducing volatilization and leaching into surface and groundwater. Through its persistence, it has a long-term impact on soil quality and carbon sequestration due to its longer carbon half-life, which can last thousands of years.

The U.K. is one of the leading countries in this market when compared to the rest of Europe. Investment in agricultural R&D focuses on technology for industrial agriculture, excluding small and medium-scale technology are the factors contributing to the market growth. This situation forces manufacturers to rely on outdated and sometimes unreliable machinery or import equipment from mainland Europe. The market has witnessed the continued development of modern equipment with a scale and price suitable for small farmers. At the 2009 United Nations Climate Change Conference, the EU endorsed the use of soil and forests as carbon sinks as part of the Copenhagen 2012 settlement. Projects on small-scale farms are being run to investigate this potential further.

RESTRAINING FACTORS

High Costs and Infrastructure Development are Expected to Hamper Market Growth

The high cost of underlying structural constraints, such as a lack of producer financing, immature carbon markets, and shorter mine reclamation obligations, continues to hinder market development. Although the commercialization of this product is still in its early stages, the lack of uniformity and standardization of this hard-to-sell product is hindering the U.K. biochar market growth.

Biomass is used as raw material in a pyrolysis reactor, with a defined heating rate, gas flow, residence time, and temperature. During pyrolysis, most of the Ca, K, P, Mg, and plant trace elements, as well as half of the N and S contained in the raw material, are retained in the biochar. However, there are inevitable byproducts of this process, including gas and bio-oil. Previous studies on applying bio-char to agricultural land have identified disadvantages such as soil erosion, soil compaction during fertilization, pollution risk, and residue removal. Crop residue and the reduced survival rate of worms create negative impacts on the environment and can affect the market.

Moreover, a lack of knowledge of the sustainable manufacturing process will continue to be one of the significant constraints limiting this product's development and potential consumption. The lack of adequate technology for low-emission char synthesis, particularly for distant or mobile production, has hampered the market’s value.

U.K. Biochar Market Segmentation Analysis

By Technology Analysis

Based on technology, the market has been segmented into pyrolysis and gasification. 

The pyrolysis segment held a significant U.K. biochar market share in 2022. Widely adopted for its cost-effectiveness and practicality, the pyrolysis process is favored by most domestic factories. Its versatility in processing various raw materials makes it a popular choice, contributing to the reduction of greenhouse gas emissions. Pyrolysis also has the comprehensive ability to process a varied range of raw materials, making it more popular and contributing to reducing greenhouse gas emissions into the environment.

The gasification segment held a considerable market share by 2022 compared to the pyrolysis segment. This process is not as typical as pyrolysis. The demand for this type of coal in the market is predicted to increase in the coming years.

By Application Analysis

By application, the market is segmented into farming, livestock, and energy production.

The farming segment is estimated to lead the market during the forecast period.  Biochar is widely used in farming owing to its various benefits to the farming segment. It is used as a fertilizer to improve the rate of natural carbon sequestration in soil. It is also known to reduce agricultural waste and help improve the environment. In addition to being a stable source of carbon, when used as a soil amendment, it can bring many benefits to agricultural production, such as improving soil quality and retaining water and nutrients.

The livestock segment is also thriving in the country, where this is widely used for animal feed as it helps reduce waste and can be used as feed for many different types of animals. Demand from the livestock segment is growing at a rapid pace.

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List of Key Companies in U.K. Biochar Market

In terms of the economic landscape, the market portrays the presence of recognized and emerging companies. The U.K. market is fragmented, with some medium-scale country players delivering a wide range of products across the value chain. Carbon Gold is expected to account for a significant market share owing to its extensive product portfolio and strong brand value. Furthermore, the company is also focused on enhancing its sales, distribution, and marketing channels through partnerships with different local associates to fortify its product reach across the U.K. Carbon Gold is one of the leading companies. They produce and supply high-quality bio-char products for use in agriculture, horticulture, and environmental applications.

LIST OF KEY COMPANIES PROFILED:

• Carbon Gold Ltd (U.K.)


• Circular Carbon GmbH (Germany)


• Carbo Culture (U.S.)


• Oxford Biochar (U.K.)


• Carbon Hill (U.K.)


• Earthly Biochar (U.K.)

KEY INDUSTRY DEVELOPMENTS:

• August 2023: Carbo Culture opened its first industrial pilot facility near Helsinki, Finland, demonstrating efficient and scalable carbon removal from bio-char. The facility named “R3, or Reactor 3,” was funded by the European Innovation Council and employs a method called biological carbon removal (BCR) to eliminate carbon dioxide (CO2) from the atmosphere permanently.


• April 2023: Circular Carbon successfully produced fully certified black carbon from cocoa husks for agriculture and horticulture purposes at the Hamburg production plant in Germany. The company carbonates nutrient-rich cocoa shells, a leftover residue from cocoa production, through pyrolysis, a decomposition reaction in which organic materials decompose in the absence of oxygen.


• March 2023: Carbo Culture joined the NextGen CDR Installation portfolio. NextGen's portfolio would establish best practices for project standards certification in the market. All projects under this portfolio would be certified and verified by the International Carbon Offset and Reduction Alliance (ICROA) to provide independent third-party assurance that they are sustainable and beneficial to local communities.

REPORT COVERAGE

The U.K. biochar market report provides a detailed analysis of the market. It focuses on key aspects such as an overview of the technological advancements and pricing analysis. Additionally, it includes an overview of the market scenario, the net zero targets to be achieved, the number of applications of black carbon in the U.K., key industry developments such as mergers, partnerships, acquisitions, and the impact of COVID-19 on the market. Besides this, the report also offers insights into the market trends and highlights key industry dynamics. In addition to the aforementioned factors, it encompasses several factors that have contributed to the growth of the market over recent years.

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