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Bio-Oil Breakthrough: Cleaning Up Abandoned Wells While Cutting CO₂

Published by Todd Bush on November 6, 2025

Hundreds of thousands of abandoned oil wells dot the American landscape, leaking methane and posing serious environmental threats. At the same time, farmers and forest managers struggle with mountains of leftover plant waste every year. Corn stalks pile up after harvest, tree trimmings accumulate in fire-prone forests, and all of it usually ends up burned or rotting, releasing carbon back into the air.

Researchers at Iowa State University figured out how to make these two problems solve each other. Their solution involves converting farm and forest waste into a carbon-rich liquid called bio-oil, then pumping it deep underground into those same abandoned wells for permanent storage. It's a remarkably practical approach that turns waste into a climate solution while cleaning up environmental hazards at the same time.

The research, published in Energy Conversion and Management, shows how mobile pyrolysis units could create a new rural economy around carbon removal. Instead of building massive centralized facilities, the team envisions a network of smaller, movable systems that process waste where it's generated.

>> RELATED: Old Oil Wells Are Getting a New Job - Storing Carbon

The Fourfold Advantage of Bio-Oil Sequestration

The Science Behind Bio-Oil Sequestration

Fast pyrolysis sounds complicated, but the concept is straightforward. You heat dried plant material to extreme temperatures, over 1,000°F, without any oxygen present. This process breaks down the biomass into three distinct products, each serving a different purpose in the carbon removal ecosystem.

The star of the show is bio-oil, a thick liquid packed with carbon that plants pulled from the atmosphere while growing. This bio-oil captures most of the carbon from the original plant waste. The process also creates biochar, a charcoal-like substance farmers can buy to improve their soil. Finally, it produces gas that can fuel the pyrolysis system itself, making the whole operation more energy-efficient.

Once produced, the bio-oil gets transported to abandoned well sites and injected deep underground. Each well can hold more than 216,000 gallons of liquid, providing massive storage capacity. The carbon stays locked away permanently, unable to escape back into the atmosphere.

project scale and economics

Mobile Units Transform the Carbon Removal Game

The Iowa State team modeled a distributed network of 200 mobile pyrolysis units that could be deployed across rural America. These machines are roughly the size of a skid loader or combine, making them easy to transport from site to site. This mobility is a game changer because it eliminates the need to haul massive amounts of low-density biomass over long distances.

Each unit processes about 10 tons of biomass daily and costs around $1.3 million to build. That price point makes the technology accessible to a wide range of operators, from agricultural cooperatives to forest management companies. The bio-oil produced gets stored in regional terminals before being transported in bulk to well injection sites.

The economics improve dramatically as more units get built and deployed. This learning rate effect, where production costs drop as manufacturing scales up, is well-documented in other industries. The researchers expect both capital and operating costs to fall significantly as the network expands.

Professor Mark Mba-Wright

"On the one hand, you have these underutilized waste products. On the other hand, you have abandoned oil wells that need to be plugged. It's an abundant resource meeting an urgent demand."

Professor Mark Mba-Wright, Iowa State University

From Research to Reality

Charm Industrial, a San Francisco startup, is already commercializing this approach. The company has signed deals with major corporations seeking high-quality carbon removal credits, proving there's real market demand. These forward-thinking companies recognize that bio-oil sequestration offers verifiable, permanent carbon storage.

Charm even funded part of the Iowa State study to validate the technology's economic potential and scalability. The company operates pyrolysis facilities that convert agricultural waste into bio-oil, which they then inject into wells for permanent storage. Their real-world operations demonstrate that the science translates successfully from lab to field.

The approach is gaining traction because it delivers what companies need for their climate commitments. Unlike some carbon capture methods that face questions about permanence or additionality, bio-oil sequestration provides durable removal with clear verification.

Peter Reinhardt

"We hear it time and again: after taking a close look among their options, leading carbon-removal buyers find that bio-oil sequestration represents one of the highest-quality and most cost-effective approaches."

Peter Reinhardt, CEO and Co-Founder, Charm Industrial

Building Rural Economies Around Carbon

This isn't just about climate benefits. The model creates entirely new revenue streams for rural communities that have seen economic opportunities shrink over recent decades. Farmers who once viewed crop residue as a disposal problem can now sell it as a valuable feedstock.

Forest managers facing wildfire risks can get paid to clear debris that would otherwise fuel catastrophic burns. Small towns could host bio-oil storage terminals, bringing jobs and investment to areas that desperately need both. The ripple effects extend throughout rural economies.

Compare this to something like direct air capture, which typically requires massive upfront capital and provides limited local economic benefits. Bio-oil sequestration distributes value more widely while using infrastructure and expertise already present in rural America.

rural renewable energy workers

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Economic Advantages Over Other Methods

When stacked against competing carbon removal technologies, bio-oil sequestration holds its own on cost and delivers unique side benefits:

  1. Lower infrastructure costs compared to building new carbon storage facilities from scratch
  2. Revenue from biochar sales helps offset operational expenses
  3. Waste management value for farmers and forest managers
  4. Job creation in regions that need economic development
  5. Utilizes existing expertise from oil and gas sector workers

Tackling the Abandoned Well Crisis

The scale of America's abandoned well problem is staggering. Federal programs have identified about 120,000 wells needing cleanup, with a $4.7 billion budget allocated in 2021. But researchers estimate there could be 800,000 undocumented orphaned wells scattered across the country.

Plugging these wells costs roughly $1 million each using traditional methods. Converting them to carbon storage sites instead provides a dual benefit. You address the environmental hazard while creating valuable infrastructure for carbon removal.

The oil and gas industry's existing knowledge about subsurface geology and well management becomes an asset in this transition. Workers with decades of experience can apply their skills to a climate solution rather than seeing their expertise become obsolete.

Why This Approach Makes Sense Now

Carbon removal doesn't need to be an either-or proposition between different technologies. The climate challenge is big enough that we'll need multiple solutions working simultaneously. Bio-oil sequestration carves out a unique niche by addressing several problems at once.

It handles agricultural and forestry waste that currently gets burned or left to decompose. It repurposes abandoned infrastructure that poses environmental risks. It creates economic opportunities in rural areas while removing carbon permanently from the atmosphere. Few other climate solutions check all those boxes.

The technology doesn't require breakthrough innovations or exotic materials. Fast pyrolysis is well-understood, and the oil and gas industry has been injecting fluids underground for over a century. What's new is putting these pieces together in a way that makes economic and environmental sense at scale.

As more companies commit to net-zero targets and carbon removal credits become more valuable, bio-oil sequestration positions agriculture and forestry as active players in decarbonization. Farmers and forest managers aren't just reducing their own emissions anymore. They're producing the raw materials for large-scale carbon removal while earning new income streams.

The Iowa State research provides the technical validation and economic modeling needed to scale this approach nationally. With companies like Charm Industrial already proving commercial viability and major corporations buying carbon removal credits, the path from research to widespread deployment looks increasingly clear.

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