Biochar Methodology and Carbon Credits Markets Evaluation

Background

A classified client sought to evaluate whether producing biochar from available biomass could support long‑term carbon sequestration and generate certified carbon credits. Because credit generation depends heavily on third‑party certification and carbon permanence requirements, assessing viable methodologies and associated market value was central to determining the client’s potential sustainability and revenue benefits. The client hired HEI to complete this assessment.

The Project

This project evaluated the feasibility and value of producing certified carbon credits from biochar produced by the client. HEI analyzed multiple globally recognized certification frameworks—Puro.earth, the European Biochar Certificate, and Verra—to assess their calculation methodologies, credit yields, verification requirements, and market reputations. Pricing variability in existing biochar-based credits was also reviewed, with certified values ranging widely depending on biomass type, production method, and expected carbon permanence.

HEI applied a consistent set of assumptions across all pilot trial data to estimate potential carbon credit yields. This approach allowed clear comparison among the methodologies, considering influencing factors such as biomass characteristics, conversion efficiency, and transportation logistics. The analysis highlighted that some methodologies produced higher credit outputs and offered greater flexibility in verification and partner selection, while others provided more standardized certification pathways.

In addition to participation in external carbon markets, we evaluated the option of retaining the biochar within the client’s operations. Land application of biochar has well‑documented benefits, including improved soil structure, nutrient retention, and water‑holding capacity, while enabling the client to account for carbon benefits internally rather than selling them as market credits.

Overall, our findings demonstrated that the client had viable pathways to create value through biochar, either by generating and marketing certified carbon credits or by embedding carbon and agronomic benefits within its own supply chain. The selection of the most appropriate certification approach ultimately depended on the client’s preferred balance between flexibility, credit volume, verification structure, and internal operational goals.