The global Biochar market is estimated to be valued at $4.27 million in 2015, and it is expected to grow with a CAGR of 17.1% during 2015 – 2023. The factors driving the growth of the global market include improved soil fertility and crop yield, natural carbon sequestration property of biochar, increased government initiatives and stringent environmental regulations, and waste management potential. The increased government initiatives and stringent environment regulations are the key drivers for the growth of the global market. The increasing environment pollution, deforestation, and global warming caused by the usage of fossil fuels have created demand for biochar.
The governments of various countries across the globe have initiated several projects and schemes to promote and encourage its usage. For instance, the American Power Act of 2010 has several provisions, which support the biochar initiatives. Moreover, several non-government or non-profit organizations are also promoting its production and usage, such as International Biochar Initiative (IBI), a member-based organization promoting good industry practices, stakeholder collaboration, and environmental and ethical standards to foster economically viable biochar systems globally; and United States Biochar Initiative (USBI), a non-profit organization promoting the sustainable production and use of biochar in the U.S.
Similarly China, India, Brazil and several other countries in Europe are framing regulations to support biochar initiatives. Additionally, Biochar production result in efficient management of agricultural waste and other organic waste; while it reduces waste disposal costs and adds a new source of revenue generation. The increasing organic waste across the world is an indication of overconsumption, which results in polluted landfills and waterways, thus biochar production offers a better solution for this problem. Several companies, institutes, and non-profit organizations are actively involved in the research and development for sustainable waste management initiatives.
Geographically, the North American market is estimated to hold the largest share in the Global Biochar Market in 2015. The North American market is growing mainly due to the increased demand for agricultural products and improved soil fertility and crop yield. The quality and texture of soil in North America is continuously degrading, due to the continuous usage of chemical fertilizers, deforestation, mining and aggressive agricultural practices. This has created a high negative impact on the productivity of agricultural products. Biochar reduces nitrogen leaching into ground water; moderates soil acidity; increases water retention capability of soil; and increases the number of beneficial soil microbes. The distinct government and non-government organizations in North America are framing regulations and guidelines to improve soil quality and crop yield, which is propelling the advanced research and development for Biochar.
The agricultural segment is witnessing significant growth among the various applications segments of the global Biochar Market, owing to the its benefits in enhancing soil quality and crop yield. The decreasing agricultural land per capita and degrading soil quality due to the continuous usage of chemical fertilizers are supporting the demand of biochar in the agricultural application.
However, the high cost of biochar is hampering the growth of the global market. Although, there are several economic benefits associated with the usage of biochar, due to sustainable waste management, environmental benefits associated with its usage and production of bioenergy, while its high cost decreases the affordability among farmers for agricultural practices. The impact is more dominant in the developing or underdeveloped economies across the globe.
The key companies operating in the global biochar market include Biochar Products Inc., Diacarbon Energy Inc., Agri-Tech Producers LLC, Genesis Industries, Green Charcoal International, Vega Biofuels Inc., The Biochar Company, Cool Planet Energy Systems Inc., Full Circle Biochar, and Pacific Pyrolysis Pty Ltd.
News Courtesy: P&S Market Research
Tagged: biochar market, chemicals industry, renewables