Markets, Production, and Growth of the US Biochar Industry

Transcription

1 Markets, Production, and Growth of the US Biochar Industry Tom Miles T.R. Miles Technical Consultants, Inc. Northwest Biochar Working Group Symposium--Biochar: What Is the Future for Industrial Production and World Usage? ASA, CSA, & SSSA International Annual Meeting Long Beach, California November 4, 2014

2 NW Biochar Working Group nwbiochar.org list Web site Meetings Projects Biochar Producers Markets, Production and Growth 2

3 Low Cost Feedstocks Drive US Biochar Production Industrial Char Residuals (>20,000 CY/yr) Combustion Gasification Co-products of Activated Carbon (<4,000 CY/yr) Wood Industry Residuals (<4,000 CY/yr) Dry wood trim Chipped wood waste, sawdust Harvested Cordwood (<20,000 CY/yr) Small scale wood residuals (<4,000 CY/yr) Future Feedstocks From Organics recycling: landscape and tree service prunings, and recycled urban wood High ash crop residues and manures Residuals (lignin) of biobased fuels (ethanol, butanol, acetic acid, furfurals, diesel) and chemicals production (xylitol) Forest residues from restoration forestry and stewardship contracts Field Crops and agricultural residues 3

4 Markets Will Drive New Forms of Feedstock Preparation Micro-chips <3/8 in; 2-4 x 4-6 mm Produced at harvest for wood pellet industry Crumbles <1/4 in 2 x 6 mm Reprocessed chips or crop residues Improved thermal processing and yield Makes uniform char chip Source: Peterson Pacific MICROCHIPS CRUMBLES HOG FUEL Source: Forest Concepts LLC Markets, Production and Growth 4

5 US Consumer and Environmental Markets Retail Garden and Landscaping Packaged consumer products Compost and industrial byproduct char Char suited to consumer needs Wholesale to Landscape services tree service Specialty Crops, Horticultural, and Turf Bulk Char to Remediation, Erosion Control Oilfield remediation and Filtration Stormwater filtration Small scale agriculture - DIY Community Supported Agriculture Urban Farming Markets, Production and Growth 5

6 Many biochar producers are new to target markets. Customer needs. What do soil scientist, agronomists, master gardeners, civil engineers advise their clients about biochar? What do they specify? What do current customers like and dislike about biochar? What are customer ideas about improvements regarding product quality, logistics, material handling, etc. Biochar Products. Advantages and disadvantages versus other products in the current biochar marketplace. Competition. Who are they? Where are they located? What feedstocks are they using? How are they pricing their product? Where are their advantages? Biochar is known to competing suppliers. Product mix. What are the different needs of each target industry? What processing is required and what incremental costs and quantities are required for the target markets. What specifications and labeling, demonstration and certification requirements for specific product formulations to suit these markets. Consider product processing changes, coating and agglomeration technologies. Markets, Production and Growth 6

7 There are Many Emerging and Potential Biochar Markets Trees and Landscaping, Structural Soil Nurseries, peat moss industry Seed coating, prills and agglomerates Green roofs Urban Farms and Gardens Turf Maintenance Erosion Control and Soil Remediation Stormwater and Water Quality Specialized or strategic use in agriculture Traditional horticulture, hydroponics, poultry farms Food waste and food processors Forest re-vegetation Bedding, kitty litter Markets, Production and Growth 7

8 Biochar Enhances Tree Services Biochar + Compost Biochar + Mycorrhiza, Composted Increases disease & insect resistance Improves microbial activity and soil fertility Increases soil water retention, and available water to tree roots Stimulates tree growth Improves tree survival No Treatment (right) 5% biochar + compost top dressing Tree roots at 18 months in compacted soils. Photo: Morton Arboretum Soil Science Laboratory Trenches with Biochar + Mycorrhiza can be used to rehabilitate diseased trees, like these examples from Japan -> (Bartlett Tree Service & Dr. Makoto Ogawa) Markets, Production and Growth 8

9 Biochar in Structural Soil Structural Soil under Permeable Pavement for larger canopy trees in parking lots. Parking Forest PCC (Maria Cahill) ParkingForest.org Structural Soil, Cornell University Improves tree health, helps them resist disease Adsorbs oils/metals from the parking lot Filters rain water, keeps nutrients close to trees. Increases water available to street trees. Markets, Production and Growth 9

10 Biochar Replaces Vermiculite in Nurseries Agronomic Benefits SOIL STRUCTURE- Vermiculite substitute COMPOST AID - Peat substitute = Compost + Biochar PLANT HEALTH - Inhibits root disease Nutrient (P) carrier for poor soils 2008 Calforest Nurseries 2009 Ponderosa Pine in Soilless Media with Vermiculite (Left) and Biochar (Right) Markets, Production and Growth 10

11 Biochar Enhances Green Roof Media Using 30% biochar in scoria roof media increased plant water availability by 16%. Cao, C.T.N., C. Farrell, P.E. Kristiansenn, J.P. Rayner Ecological Engineering 71: Photo: Ladybird Johnson Wildflower Center Adding 7% Biochar to Scoria based media improved the effluent with 70% reduction in Nitrates, 40% reduction in Phosphates and 70% reduction of Organics than un-amended control. Beck, D.A., G.R. Johnson and G.A. Spolek Environmental Pollution 159: Markets, Production and Growth 11

12 Biochar in Urban Farms and Gardens Ghost Peppers and Carolina Reapers URBAN FARMING GREEN ANCHORS Markets, Production and Growth 12

13 Use normal practices Use stable soil amendment Retain more water Replace non-sustainable materials Reduce chemical leaching and runoff Reduce chemical and fertilizer use Decrease saturated hydraulic conductivity Promote growth of microorganisms Sequester Carbon. Sunmark Environmental Biochar Improves Turf and Landscape Management for Parks and Recreation Sand-based turfgrass root-zone modification with biochar, Shane R. Brockhoff, Iowa State University Biochar + compost may resist Pythium blight (Photo LP Tredway) Markets, Production and Growth 13

14 Biochar Improves Re-vegetation BIOCHAR IN MULCH FOR HYDROSEEDING Markets, Production and Growth 14

15 Biochar Improves Remediation Fiber with 10% Biochar This was the recycled nasty soil from the steel mill that still grew vegetation. There is a line of where we sprayed PermaMatrix and where it was not applied. The other vegetation died. -- Drew Schaefer Sunmark Environmental Markets, Production and Growth 15

16 Biochar Filtration Improves Water Quality LOW IMPACT DESIGN:RAIN GARDENS/STORM DRAINS WSU Low Impact Development Center DEMOS: 8 Cities RESEARCH: OSU MS, MBA EPA Corvallis WSU Puyallup Stanford/CSM ROOF DRAINS BIOCHAR IN COMPOST ROLLS AND BIO BAG FILTERS FOR SURFACE RUNOFF Markets, Production and Growth 16

17 Biochar with Sand Reduces COD in Bioretention Filters for Industrial Stormwater Filtration Port of Tacoma, West Hylebos Pier Log Yard Sand filter biofilters Sand + biochar Photo: Kennedy Jenks, Port of Tacoma, West Hylebos Pier Log Yard Up to 80% - 90% reduction in ISGP parameters: ph, Zinc, Copper, Turbidity, TSS & COD Small Scale tests: 70% Sand + 30% Biochar to capture Copper and reduce Chemical Oxygen Demand (COD) Markets, Production and Growth 17

18 Biochar Filters Many Toxics & Organics Peer reviewed research shows the following toxic organics are sorbed by biochar. Heavy Metals: Copper, Zinc, Lead, Cadmium, Chromium, Mercury Explosives: DNT, TNT, RDX Herbicides: Atrazine, Acetochlor, Clopyralid, Fipronil, Glyphosate, Simazine, 2,4D, Trifluralin, Diuron (DCMU) Benzonitrile, Phenathrene, trichloroethylene, Triazine Hydrocarbons Poly chlorinated biphenyls (PCB) Pesticides & Fungicides: Pyrimethanil, Hexachlorobenzene, Pentachlorophenol, Lindane, Isoproturon, Endosulfan, Chlorantraniliprole, Chlorpyrifos, Carbofuran Polycyclic Aromatic Hydrocarbons (PAH) >50% of 4-& 5- ring PAH, >40% of 2- & 3- PAH Literature Search: sciencedirect.com Markets, Production and Growth 18

19 Biochar Products are Diverse and Improved Designer Biochars and Product Differentiation Increased Biochar testing and characterization IBI testing protocols Internal quality control procedures Product Expansion Formulated products nutrient enhancement Processed products feedstock prep, activation, blending Creative Production and Delivery Systems for Agriculture Delivery via Irrigation and Spraying systems No till injection to buffer aluminum toxicity Product Awareness in the Market Not What is Biochar? but how much, what kind and what benefit What products will soils and crops professionals specify? Markets, Production and Growth 19

20 Price and Value are not established for most markets What can the consumer (farmer, contractor) in each market segment afford to pay for a Biochar solution? $50/acre/year? $600/CY? What service needs to be provided to deliver of the benefits of biochar? Growth enhancement Water conservation Soil improvement Water quality Remediation Markets, Production and Growth 20

21 Estimated Value Ranking of Biochar Products $1.00-$0.10/lb Apparent Market Values 1. Activated Carbon $1.00+/lb, $300+/CY 2. Partially Activated Biochar environmental, stormwater 3. Nutrient Management $0.50/lb, $150/CY 4. Carrier for Bio-fertilizers 5. Soil blends for Moisture Management $0.40, $120/CY 6. Pet products: food and bedding 7. Soil Amendment $0.30/lb, $90/CY 8. Compost, Odor Control, $0.10, $30/CY Markets, Production and Growth 21

22 Biochar Producers: Individuals and Small Enterprises Small companies (<10 employees) Abundant enthusiasm, Unlimited optimism Varying experience in commodity markets Varying business (including start-up) management experience Continuous product development (seek high value, low volume) Low production capacity ( lb/hr; <4 tpy, 24 CY or qt bags; max 50 tpy, 300 CY) No contracts or off-take agreements Low capital investment (<$1 million) Limited cash (undercapitalized, e.g. working capital), Limited access to financing (vendor financed) Marginal profitability May be extension of an existing business Markets, Production and Growth 22

23 Biochar Producers: Industrial Scale Established charcoal or activated carbon producers Industrial gasification and combustion Co-production, infrastructure, CHP Byproducts and residuals Biomass Power Industry Wood Products Industry solid wood, pellets Markets, Production and Growth 23

24 Biochar Production is Diverse Dry Fuel Air Dried or Less than 20% MC, pure or blended Temperatures 400⁰C, 600 ⁰C, 800 ⁰C Industrial Scale High Carbon Flyash, 10 CY/day Earth Systems CY/day Energy and Biochar, 50 CY/Day ICM Biochar 400 CY/day Farm Scale Adam Retort 1-2 CY/day Small scale Top Lit Burn Pile >0.5CY/day Small Ovens <10 ft3/day, Firepit kiln, Jolly Roger, Gasifiers Stoves, BBQ <ft3/day Markets, Production and Growth 24

25 Some Industrial Biomass Boilers Can Produce High Carbon Wood Ash With Biochar-like Properties Boiler-Superheater Economizer 200 TPD WOOD 8-10 CY/Day Biochar 60%-80% Carbon Electrostatic Precipitator Stack Multicyclone Furnace Cells/Grate Ash/Char Air Heater Source: Wellons, Inc. High Carbon Ash Fan Markets, Production and Growth 25 Ash

26 Industrial Systems Convert Wood/Straw to Heat, Power and Biochar Makes 40 TPD 400 CY/Day BIOCHAR 4-8 TPH Biomass 2-5 MWe 30-60,000 BDT/y ICM 200 tpd Gasifier Wood, Straw, Stover Markets, Production and Growth 26

27 Co-production: Biochar, Energy, Biofuels, and Chemicals 250-1,000 tpd Energy and Heat 25 MWe Combustor and Boiler Pyrolysis Oil and Biochar 1-10 tph Liquid Fuel 50 MGY Ethanol Plant (ICM) Amaron Markets, Production and Growth 27

28 Mobile Systems are Still Low Capacity and Too Costly MPP20/40 Mobile Charmaker 20 CY/DAY 2 ton 10 CY/4 hours Fully automated Earth Systems (Aus) USD $345,000 Markets, Production and Growth 28

29 Small CHAB: Stationary Retort with Greenhouse Heating Sullivan Center for Sustainable Agriculture and CSA, NH sullivancsa.com New England Biochar newenglandbiochar.org 1 Cord ~ 4 CY 8 hr burn 1-2 CY Biochar + 300,000 Btuh Hot Water Markets, Production and Growth 29

30 Farm Scale: Trough Gasifier For Bark, Litter, Sawdust Fuel Hot Gas Gasifier Biomass 800 lb/hr chips, litter Heat 1.4 MMBtuh Biochar 140 lb/hr 4-12 CY/Day Cost $150,000 BES Australia Stephen Joseph 2014 Char Markets, Production and Growth 30

31 Backyard Biochar with a TLUD Stove TLUD BIOCHAR STOVE Ray Mencke 2/23/14 Markets, Production and Growth 31

32 Biochar Industry Faces Challenges to Growth Market absorption ability to take 40,000 CY per year (5,000+ tpy) Minimum scale needed for carbonization and post processing Co-products activated chars, barbeque charcoal, steam host Who will build commodity scale manufacturing facilities? $1million/od ton biomass per hour. Shale gas revolution: impact of low cost oil and gas for heat, power, fuels and chemicals (failed energy project- no investors for Biochar) Markets, Production and Growth 32

33 Some Paths Toward Future Growth Continued biochar product development Development of affordable Biochar solutions Biochar product testing, approval and specification Research and application for unique Biochar solutions Characterization of performance of high ash feedstocks (straws, bark, manures.) Reduced production costs through efficient use of low quality feedstocks. Future biochar production will grow as co-products of energy including liquid fuels such as light fraction of pyrolysis products and synthetic drop in diesel. Large resource managers millions of tons Competition pellets and export markets Markets, Production and Growth 33

34 Conclusions Markets Current Producers Can Deliver to Diverse Markets Initial markets are low volume, high value retail garden and remediation Emerging markets are partially activated chars for stormwater and environmental uses Costs and benefit of specific applications in agriculture are not clear Products Producers capable of making a variety of biochar products New products are formulated blends to meet customer needs. Need guidance from soil and crop professionals Production Greater potential than market. Initial volumes are driven by low cost biomass residues. Biochar is a co-product to other biomass and energy products. Current markets do not support commodity scale investments Growth Prospects Slow market development; Local markets can not adsorb potential capacity Availability of commodity biochar from large scale fuels or chemical production may change local markets Markets, Production and Growth 34

35 TR Miles Technical Consultants, Inc SW Woodward Way Portland, OR mobile Design and development of energy and environmental processes Industries Biomass energy Pollution control Materials handling Feed, Food and Fuels