Navigating the Biochar Boom: How Companies Are Securing Their Carbon Removal Future

The Growing Demand for Biochar in Carbon Removal

Biochar, a stable form of carbon-rich material produced from organic waste through pyrolysis, has emerged as a leading method for carbon sequestration. Its ability to lock away carbon for centuries while enhancing soil health makes it a preferred choice for many organizations aiming to offset their carbon emissions.​

According to a recent report by Supercritical, titled "Locked in or Left Behind? Biochar Offtakes in 2025," the voluntary carbon market (VCM) is experiencing a surge in demand for high-quality biochar. This surge is leading to a scarcity of supply, as larger corporations secure multi-year agreements to ensure future access at more favorable prices.​

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Key Insights from Supercritical's Report

The report highlights several critical trends:​

• 62% of high-quality biochar capacity for 2025 is already committed by repeat buyers, with 28% secured through 2026.

• Biochar prices increased by 18% in 2024, while companies entering multi-year agreements now are saving up to 31% compared to spot purchases.​

• Corporate demand for durable carbon removal could reach 40–200 metric tons of carbon dioxide equivalent (MtCO₂e) per year by 2030, but current supply falls significantly short.​

These findings suggest that companies with net-zero goals by 2030 may face challenges if they delay securing their biochar supplies. Larger buyers are locking in future supply at lower costs, potentially leaving latecomers with limited and more expensive options.​

The Importance of Multi-Year Offtake Agreements

In the context of the tightening biochar market, multi-year offtake agreements have become essential for companies aiming to stabilize their supply and pricing. Such agreements allow organizations to plan their carbon removal strategies effectively, ensuring they meet their sustainability targets without facing unforeseen costs or shortages.​

Michelle You, CEO of Supercritical, emphasizes the strategic importance of these agreements:​

"This isn't just about buying carbon removal—it's about securing future access in an increasingly competitive market."

By committing to long-term contracts, companies can mitigate risks associated with price volatility and supply constraints, positioning themselves advantageously in the pursuit of net-zero emissions.​

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The Role of the Science Based Targets Initiative (SBTi)

The Science Based Targets initiative (SBTi) plays a pivotal role in guiding companies toward effective carbon reduction strategies. As a collaboration between organizations like the CDP, the United Nations Global Compact, the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF), the SBTi provides frameworks for setting science-based emissions reduction targets.

With guidelines expected to introduce interim carbon removal targets, the competition for high-quality biochar is anticipated to intensify. Companies aligning their strategies with SBTi recommendations are better positioned to navigate the complexities of the carbon removal market and achieve their sustainability objectives.​

Case Study: Google's Commitment to Biochar

A notable example of proactive engagement in the biochar market is Google's recent partnership with Charm Industrial.

In January 2025, Google announced a contract to remove 100,000 tons of CO₂ by 2030 using biochar produced from biomass. This deal not only underscores Google's dedication to innovative carbon removal solutions but also highlights the growing trust in biochar's efficacy.​

Peter Reinhardt, CEO of Charm Industrial, expressed the significance of this collaboration:​

"It's a big deal for us...it's a really strong proof point with a really sophisticated buyer on a core thesis for Charm." ​

Such partnerships exemplify how leading companies are taking decisive steps to secure their carbon removal futures through biochar.​

The Future Outlook for Biochar and Carbon Removal

As the urgency to address climate change intensifies, the demand for effective carbon removal solutions like biochar is set to rise.

Companies that act promptly to secure their biochar supplies through strategic agreements will not only contribute to global sustainability efforts but also gain a competitive edge in a carbon-conscious marketplace.​

However, those who delay may find themselves facing higher costs and limited availability, hindering their progress toward net-zero goals. The current landscape underscores the importance of foresight and proactive engagement in the evolving carbon removal market.​

In conclusion, the biochar market is rapidly evolving, with supply constraints and increasing demand shaping its trajectory. Companies that recognize the strategic value of securing biochar through multi-year agreements are better positioned to achieve their carbon reduction targets.

As the market continues to develop, staying informed and acting decisively will be crucial for organizations committed to sustainability and environmental responsibility.