Char Power Projects

Char Power is developing three 5-Train Biochar Production projects over the next year in Des Moines, Iowa, providing solutions for:

• Eliminating waste by processing vast amounts of area biomass - currently being disposed of in area landfills 
• Improving agricultural soil health and quality with a steady, abundant supply of beneficial biochar 
• Making a positive economic impact on the local economy

Working with area suppliers and offtakers, we have established long-term agreements to ensure we meet the ongoing regional biomass supply and biochar fertilizer/compost demand.

Char Power is actively engaging with Malaysian business and community leaders to pursue opportunities in Malaysia. To date, there is only one large-scale pyrolysis plant in Malaysia processing 20 t/day of biomass and producing 4 t/day (960 t/yr) of biochar, however, the plant has a low yield (20%) and operates only 66% of the time (240 days/yr). Another new biochar project is currently planned on a local plantation, with millions being invested to install large pyrolysis equipment from the U.S. This new project is currently applying for carbon credits.

• Oil palm wastes (OPWs) are important biomass resources, and approximately 127 million tons of OPWs are generated from the oil palm industry annually in Malaysia.
• Approximately 91% of the annual biomass is produced by palm oil plantations, which contribute 70% to the total amount of agricultural waste. 
• The solid wastes may consist of empty fruit bunches (EFB), mesocarp fruit fibers (MF) and palm kernel shells (PKS). At present, PKS and MF wastes are used extensively for steam production in palm-oil mills. EFB is a resource which has huge potential to be used for power generation but is currently not being utilized – as its moisture content is very high and a poor fuel without drying and presents a considerable emissions problem when burning.
• This represents a significant opportunity for Char Power (and Malaysia), as our systems can effectively process the EFBs (as well as the other OPWs’ biomass) into useful biochar – solving the issue of the significant amounts of waste left to decompose in place, landfilled, or burned causing harmful pollution.
• In addition to palm oil waste, rice paddies are also a significant source of waste as they are the second largest plantations after palm oil.
• The main waste is rice straw, which is available all-year round. The straw is often burned in field as the cheapest and fastest way to prepare the land for the next cropping season.
• This produces haze and causes air pollution which are damaging to the environment and human health.  

The global biochar market size was valued at USD 680.84 million in 2023 and is projected to grow from USD 763.48 million in 2024 to USD 2,097.72 million by 2032, exhibiting a CAGR of 13.47% during the forecast period.

• The biochar market in the U.S. is projected to grow significantly, reaching an estimated value of USD 43.61 million by 2032, driven by the federal and state renewable energy mandates and the push toward combating GHG emissions.
• The demand for biochar is rising owing to growing trends of carbon credits and rising adoption sustainable agriculture practices across farming activities are the driving factors for the market growth. 

Char Power’s Market Advantage – Advanced Mobile Technology, Lower Cost

Lack of knowledge of the sustainable char manufacturing process will continue to be one of the major constraints limiting this product's development and potential consumption.

• The lack of effective technology for low-emission char synthesis, particularly for distant or mobile production, has hampered the market value. The high cost of such products and underlying structural constraints, such as a shortage of finance for producers, an immature carbon market, and shorter timescales for mining land restoration bonds, continue to impede the market growth.   

Meeting the Soaring Demand with Required Volume and Quality

The adoption of sustainable agriculture practices across farming activities is expected to drive the global market. In addition, the rising trend of carbon credits is also propelling the market growth. Biochar carbon credits are credits that constitute persistent carbon sequestration. This permanent sequestration, also referred to as drawdown or removal, varies from reduction credits or avoidance as it physically traps carbon in a stable form for a longer time.

• The integration of biochar as a sustainable farming method for promoting crop yield has resulted in the expansion of the global biochar market. In addition, the rising initiatives, schemes, and subsidies by governments and different organizations for the promotion of sustainable practices in agriculture also support market growth. 
• In recent years, pyrolysis of biochar has also gained significant traction as a sustainable method for waste management and soil enhancement. This innovative technology provides numerous advantages that extend beyond conventional waste disposal methods. As an option for rapid incineration or slow decomposition, converting biomass waste into biochar results in a product that is extremely valuable for enhancing the soil.
• In December 2023, a task force of companies including Mars, McCain Foods, McDonald's, Mondelez International, PepsiCo, and Waitrose announced a plan to make regenerative farming financially viable and scalable, exploring implementation projects in India, the U.K., and the U.S.
• In March 2024, The U.S. Agriculture Department and Nuziveedu Seeds gave 200 metric tons of Biochar to farmers of Erravelli village in MarkookMandal. Nuziveedu’s Biochar, a carbon-rich soil amendment produced from cow dung and maize shanks. Its innovative production process imbues the Biochar with unusual characteristics, comprising enhanced soil aeration, nutrient capacity, and improved moisture retention.
• In September 2024, BluSkyCarbon Inc. secured a USD 105 million contract for agricultural grade soil amendments in Southern USA, with the purchaser agreeing to purchase up to 382,213 tons of biochar over 10 years.
• Char Power is currently addressing an opportunity with a large European customer with a demand of up to 1 M-MT of biochar/year. As this is for large industrial use, two key criteria are ensuring volume and the percentage of carbon, which needs to be 80-90% when dry.