Biochar Credit Supply Set to Scale Across Emerging Markets

West Africa's largest biochar plant has been officially inaugurated in Abidjan, Cote d'Ivoire, days after fresh estimates pointed to far greater biochar potential across emerging markets.

Industrial biochar facility converting agricultural biomass waste into carbon-sequestering biochar, illustrating the scaling role of biochar in verified carbon removal markets. Ai generated picture.

The Valency Cashew Biochar Facility, developed by Singapore-based Revata Carbon alongside commodity trader Valency International, processes up to 20,000 tonnes of cashew waste a year. The unit produces nearly 6,000 tonnes of biochar alongside cashew nut shell liquid and renewable power.

‘We are thus witnessing the transformation of agricultural by-products into strategic industrial resources,’ said Cote d'Ivoire's Minister of Trade, Industry and Handicrafts, Ibrahim Kalil Konate, who inaugurated the plant. ‘The potential is immense. The opportunities are real. And Cote d'Ivoire is resolutely committed to this path.’

Revata Carbon has joined the Varaha Industrial Partners Program, run by India-based biochar developer Varaha, for measurement, reporting, verification and credit commercialisation support. Credits from the project will be issued through Puro.earth, the Finland-based carbon standard.

Separately, Argentina could issue more than 30 million carbon credits from biochar projects, according to a report by the Cordoba Grain Exchange (BCCBA). The country's annual biomass surplus of around 40.2 million tonnes from timber and crop production could yield up to 12 million tonnes of physical biochar at a conversion rate of 25% to 35%.

Each tonne of physical biochar can generate an average of 2.8 tCO2e in credits under international carbon methodologies, according to the American Biochar Institute. BCCBA said the country lacks a developed domestic market for biochar as fertiliser or fuel, leaving carbon credit issuance as the main commercial route.

‘It should not be lost sight of that… profitability is not sufficient to justify the production of biochar on its own, unless the aim is to incorporate that production into carbon credits,’ BCCBA said.

Pricing for large-scale biochar credit deliveries under Puro.earth stood at $120 per tCO2e for spot transactions, recent assessments showed. One of the world's largest biochar producers, Bolivia-based Exomad Green, expects to reach one million tCO2e in annual credit issuance by 2027, with offtake agreements already in place for nearly all its production until 2030, including with Microsoft.