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Biochar Commercialization: The Pathway Forward Biochar Markets Matt Delaney Delaney Forestry Services NW Biochar Working Group Meeting Salem, OR December 11, 2014

Biochar Commercialization: The Pathway Forward

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Page 1: 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

Page 2: Biochar Commercialization: The Pathway Forward

Agenda

Market OverviewMarket SegmentsKey Stakeholders and Roles

Page 3: Biochar Commercialization: The Pathway Forward

• 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

3

Page 4: Biochar Commercialization: The Pathway Forward

Organizations Involved

• Applied research

• Demo projects

• Established pathways Source: www.rffi.org

Page 5: Biochar Commercialization: The Pathway Forward

• 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

5

Slash-pile burn in Oregon (photo

courtesy of Kathy Storm OFRI)

Page 6: Biochar Commercialization: The Pathway Forward

• 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

6

Page 7: Biochar Commercialization: The Pathway Forward

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

Page 8: Biochar Commercialization: The Pathway Forward

Market Status

• 2014 Message: people know about biochar

• Current challenges: customer needs, price, specs, supply chains

Page 9: Biochar Commercialization: The Pathway Forward

Agenda

Market OverviewMarket SegmentsKey Stakeholders and Roles

Page 10: Biochar Commercialization: The Pathway Forward

• Agriculture, horticulture, filtration, remediation

Market Segments

10

Images courtesy of John Miedema, Autumn Freer, Tom Miles, Steve Griffith

Page 11: Biochar Commercialization: The Pathway Forward

• 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

Page 12: Biochar Commercialization: The Pathway Forward

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

Page 13: Biochar Commercialization: The Pathway Forward

• Activity highlights

Developing Pathways

13

Page 14: Biochar Commercialization: The Pathway Forward

BioLogical Carbon

• Based in Philomath, Oregon

• Biochar media & systems

• Work on stormwater filtration

Page 15: Biochar Commercialization: The Pathway Forward

Freer Organics

• Based in Idaho• Bokashi and biochar blends• Vermicastings, vineyards,

orchards• Bioswales—Idaho Department

of Transportation

http://freerorganics.com/

Page 16: Biochar Commercialization: The Pathway Forward

Redwood Forest Foundation Inc.

• Based in Mendocino, CA

• CIG Grant

• In woods processing of forest biomass

http://rffi.org/Biochar.html

Page 17: Biochar Commercialization: The Pathway Forward

University of Nevada--Reno

• Dusty Moller

Wood Utilization Manager

Business Environmental Program

Small Business Development Center

University of Nevada--Reno

[email protected]

Page 18: Biochar Commercialization: The Pathway Forward

Agenda

Market OverviewMarket SegmentsKey Stakeholders and Roles

Page 19: Biochar Commercialization: The Pathway Forward

Process: Market Development

Research Demo Regulatory FinancialCommercial Production

Page 20: Biochar Commercialization: The Pathway Forward

Research Demo Regulatory FinancialCommercial Production

Key Stakeholders and Roles

UniversityARS

EntrepreneurGrant—State, Federal, Foundation

Permits: Water, Air, Product Labels

EntrepreneurBusiness Partner(s)Agreements

Page 21: Biochar Commercialization: The Pathway Forward

Agency Permitting and Certification

• OR Department of Agriculture—product labelling, growth claims, labelling, etc.

• Air Permit? Water Permit?

• OMRI, IBI, EU

Page 22: Biochar Commercialization: The Pathway Forward

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

Page 23: Biochar Commercialization: The Pathway Forward

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”

Page 24: Biochar Commercialization: The Pathway Forward

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

Page 25: Biochar Commercialization: The Pathway Forward

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

Page 26: Biochar Commercialization: The Pathway Forward

Challenges for Agriculture/Horticulture

• Existing soil amendment costs

• “That biochar stuff is expensive”

• Water holding capacity—is there value?– Earlier germination

– Lower irrigation costs?

Page 27: Biochar Commercialization: The Pathway Forward

Home Garden/Landowner Use

• Low cost production options

• Scale

• Backyard Biochar.net– http://backyardbiochar.net/

Images courtesy of Kelpie Wilson and Tom Miles

Page 28: Biochar Commercialization: The Pathway Forward

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/

Page 29: Biochar Commercialization: The Pathway Forward

Conclusions

• Markets

• Activities--research, product development

• Market Development Process & Barriers

• Stakeholder Roles

• End Users“An Elegant Matrix…”

Photo: OSU Extension

Page 30: Biochar Commercialization: The Pathway Forward

Questions?

30

Matt Delaney

Delaney Forestry Services

[email protected]

(541) 990-4306

Page 31: Biochar Commercialization: The Pathway Forward

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?

Page 32: Biochar Commercialization: The Pathway Forward

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?