Biochar Carbon Removal Credits: How They Work and How a Buyer May Help

Biochar is a charcoal-like material made by heating biomass, such as wood residue or crop waste, with little or no oxygen. This process is called pyrolysis. The idea behind biochar carbon removal credits is that carbon the plants absorbed may be kept in a more stable form, rather than returning to the air as the material decays or burns.

A pyrolysis-based removal credit generally represents a measured quantity of carbon dioxide removed or kept out of the atmosphere, as set out in a project's methodology. Biochar is often applied to soil or blended into materials such as concrete or asphalt. How the credit is calculated depends on the methodology, the feedstock, the production process and the end use.

Biochar sits in the engineered removal tier of the carbon market. Credit quality can differ from project to project. Questions about additionality, permanence, vintage, monitoring and double counting are usually answered through the project's registry documentation, so each project needs its own review.

Carbon Credit Offtakers does not issue, verify, hold, guarantee or trade any credit or offtake agreement.

Biochar producers have often started by selling the char itself to farms, landscapers, gardeners or industrial users. Carbon credits came later for many projects, as an extra revenue stream layered on top of product sales and energy or heat recovery.

To generate credits, producers have typically worked within a recognized registry or standard and followed an approved methodology. This usually involves documenting feedstock sourcing, production data, how the char is used, and independent third-party verification. Examples of registries and standards in the wider market include Verra VCS, Gold Standard, American Carbon Registry and Climate Action Reserve, though not every one covers biochar in the same way.

Credits have commonly been sold through spot sales, forward sales or longer-term offtake agreements, where a buyer agrees in advance to take future credits. Some producers sell directly, while others use intermediaries or marketplaces. Each route involves different tradeoffs in effort, timing, cost and risk, and none is right for everyone.

The right buyer or offtaker may help a biochar producer think through how credits could fit with the rest of the business. Some buyers have experience with removal projects and can explain what they usually look for. That can include documentation, monitoring data, the registry pathway and delivery timing. Whether any buyer is interested in a given project is never guaranteed.

A first conversation is generally an information exchange. Expect questions about your feedstock, your pyrolysis equipment, where the char goes, your registry status and your production timeline. You may be asked for documents, and a buyer may want to do their own review before saying anything about interest or terms.

Useful questions to ask include these. Which registries and methodologies do you accept? How do you treat permanence, additionality and double-counting risk? Do you require a corresponding adjustment, and how is that handled? Who pays for verification and ongoing monitoring? How are deliveries, payment timing and any fees structured in the contract? Confirm every answer directly with the buyer and the registry, and consider asking a qualified legal, tax or financial professional to review any agreement before you sign.