Coming out of COP30, a recent Reuters analysis surfaces a tension many of us in the biochar sector already feel: we are scaling faster in climate impact than in market structures.

According to reporting by Oliver Balch, PhD, the global biochar market is projected to surpass $2 billion by 2032, nearly tripling in value. Yet that growth is uneven. Biochar delivered over 90% of all carbon removal credits this year — more than any other pathway. Demand is strong, anchored by long-term procurement commitments from buyers such as Microsoft and Google.

But structurally, the sector remains fragmented. Many producers are still small or mid-sized. They can achieve high-quality, durable removals — but not at the volume or consistency that compliance-driven and corporate buyers increasingly expect.

USBI’s Executive Director Myles Gray captures it clearly in the Reuters piece:

“Large buyers aren’t interested in sourcing a whole bunch of credits from lots of medium- and small-scale facilities. To meet their 2030 goals, they want larger projects.”

This is the core friction.

Producers have proven science, proven climate value, and proven demand.

What they lack is access to capital, bankable offtake structures, and market mechanisms that consolidate supply.

The Reuters article highlights several dynamics shaping the next phase of the sector:

1. The Scale Barrier: ~$5 Million to Industrialize

To compete for large-volume offtakes, many small producers would need to jump to industrial scale — a move that typically requires $5M+ in capex. That kind of financing is not readily available to most operators, especially in emerging markets.

2. Short-Term Offtakes = Weak Negotiating Power

Producers often accept short-term offtake agreements with unfavorable terms because they lack alternatives. This limits their ability to attract financing and makes growth unpredictable.

3. Pooled Supply May Become a Turning Point

Balch suggests a cooperative-style model — similar to agricultural co-ops — where smaller facilities pool supply to meet the volume requirements of large buyers.

This could create:

• Consistent aggregate volumes
• Shared quality systems
• Better negotiating leverage
• Standardized operations and MRV

From a systems perspective, this is one of the clearest pathways for bridging the gap between strong technical performance and the level of financial maturity buyers expect.

4. “Pitch Like Engineers, Think Like Bankers”

Producers need to demonstrate not only the engineering reliability of pyrolysis systems, but also the bankability of their operations.

That means:

• Documented uptime
• Clear cost-of-production models
• Multi-revenue streams (energy, heat, materials, credits)
• Standardized processes
• Professionalized reporting and accountability structures
• In other words, the technology is ancient; the business model must be modern.

Why This Matters for Our Community

If biochar is already delivering 90% of carbon removals today, the sector is positioned to become the backbone of durable CDR for the next decade. But that trajectory only holds if producers can secure the capital and contracts required to grow.

The article is a reminder that our challenge is no longer technical validation. It is market alignment.

We need structures — financing mechanisms, pooled models, multi-plant portfolios, and standardized operations — that match the expectations of institutional buyers and investors.

This is where associations, networks, and collective platforms matter. And where cross-regional collaboration will be essential in 2026.

Source

Oliver Balch, PhD. “To capitalise on the promise of biochar, producers must ‘pitch like engineers’ and ‘think like bankers.’” Reuters, 18 November 2025.