Press release
India Biochar Market Expected to Reach USD 207.9 Million by 2034, Industry Growing at a CAGR of 10.66%
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What is Biochar?
Biochar is a carbon-rich material produced through pyrolysis - heating organic biomass like crop residues, wood waste, or agricultural leftovers in a low-oxygen environment. This process, conducted at temperatures between 300°C and 700°C, breaks down biomass into three main outputs: biochar, syngas, and bio-oil. The resulting biochar is a stable, porous substance that can lock carbon in the soil for hundreds of years, making it a powerful tool for carbon sequestration. For instance, companies like ArSta Eco in India are converting agricultural waste into biochar using integrated pyrolysis technology, demonstrating how this sustainable solution transforms waste into value while addressing climate challenges.
Key Market Trends and Drivers:
The India biochar market is experiencing robust growth driven by several compelling factors. Growing awareness around sustainable agriculture practices is pushing farmers to seek alternatives to chemical fertilizers, and biochar fits this need perfectly by improving soil health, boosting water retention, and supporting beneficial microbes. India generates approximately 500-550 million tons of crop residues annually, much of which is burned, contributing heavily to air pollution. Converting even 1% of this agricultural waste into biochar could sequester 74 thousand tons of carbon in Northeast India alone.
Government support is also playing a crucial role. Programs under the National Mission for Sustainable Agriculture and National Bio-Energy Mission are actively promoting biochar production for carbon capture and waste management. Major industrial players are recognizing biochar's potential beyond agriculture - Tata Steel became the first Indian steelmaker to incorporate biochar in its production, replacing about 30,000 tons of fossil fuel and potentially cutting over 50,000 tons of CO2 emissions annually. Similarly, IIT(ISM) Dhanbad partnered with sustainability startup sentra.world in November 2024 to research biochar applications in steel manufacturing, aiming to reduce emissions by up to 40% while addressing the stubble burning crisis.
The rise of carbon credit markets is adding further momentum. Biochar-based carbon credits are valued at $100-$180 per tonne of CO2e on voluntary markets, creating new revenue streams for producers. International tech giants are taking notice - Google signed an agreement to purchase 100,000 tons of carbon removal credits from Indian company Varaha, which converts agricultural waste into biochar. Additionally, technological advancements like microwave pyrolysis are making biochar production more efficient and affordable, reducing operational costs by up to 40%. The Indian government has also endorsed biochar for wastewater treatment and construction applications, opening up non-agricultural markets. With water infrastructure spending reaching INR 5 trillion, biochar is poised to play a significant role in urban development projects.
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Recent News and Developments in the India Biochar Market
✤ January 2025: Google entered into a significant agreement to purchase 100,000 tons of carbon removal credits by 2030 from Varaha, an Indian company that converts agricultural waste into biochar. This investment not only supports carbon sequestration efforts but also enhances soil health, thereby promoting sustainable agricultural practices across India.
✤ November 2024: Tata Steel became the first Indian steel manufacturer to incorporate biochar into its production process, replacing approximately 30,000 tons of fossil fuel. This pioneering move has the potential to reduce over 50,000 tons of CO2 emissions annually, demonstrating Tata Steel's commitment to environmental sustainability and setting a precedent for the entire steel industry.
✤ November 2024: IIT(ISM) Dhanbad signed a memorandum of understanding with sustainability startup sentra.world to research biochar applications in steel manufacturing. This collaboration aims to utilize surplus biomass to produce biochar, potentially reducing emissions by up to 40% and curbing the stubble burning crisis, thereby advancing sustainable steelmaking practices nationwide.
✤ October 2024: The Steel Authority of India Limited (SAIL) partnered with global mining company BHP to explore the use of hydrogen and biochar in reducing carbon emissions at SAIL's blast furnace plants. This initiative aligns with India's climate commitments and addresses the steel industry's substantial contribution to national emissions.
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Leading Companies Operating in the India Biochar Market:
✤ ArSta Eco Pvt Ltd
✤ Ankur Scientific Energy Technologies Pvt Ltd
✤ Biochar India
India Biochar Market Report Segmentation:
Analysis by Feedstock Type:
✤ Woody Biomass
✤ Agricultural Waste
✤ Animal Manure
✤ Others
Analysis by Technology Type:
✤ Slow Pyrolysis
✤ Fast Pyrolysis
✤ Gasification
✤ Hydrothermal Carbonization
✤ Others
Analysis by Product Form:
✤ Coarse and Fine Chips
✤ Fine Powder
✤ Pellets, Granules and Prills
✤ Liquid Suspension
Analysis by Application:
✤ Farming
✤ Gardening
✤ Livestock Feed
✤ Soil, Water, and Air Treatment
✤ Others
Regional Analysis:
✤ North India
✤ South India
✤ East India
✤ West India
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