Old Farming Practice Offers Carbon Credits --- Many companies are embracing biochar to offset their emissions of greenhouse gases

"Forget whiz-bang technologies that are supposed to solve climate change. An ancient agricultural practice that removes carbon from the atmosphere is getting fresh attention and game-changing cash from big companies.

Biochar is a black substance similar to charcoal that when buried underground sequesters carbon dioxide, the primary greenhouse gas that causes climate change. It has long been used to improve soil. Now it has suddenly become a lucrative business thanks to carbon credits that companies use to offset their own emissions. Among the buyers are JPMorgan Chase & Co. and Microsoft Corp. They are attracted to a process that actually removes carbon from the atmosphere and buries it underground, rather than many credits whose impact on emissions isn't clear.

Nearly all of the roughly 65,000 metric tons of carbon dioxide that have been removed from the atmosphere to date have been sequestered using biochar, according to estimates from data provider CDR.fyi.

There isn't much money to be made selling biochar to improve soil. Carbon credits changed that. "When the only potential revenue was through biochar sales, there just really wasn't much there," said Josiah Hunt, chief executive of Pacific Biochar Benefit Corp., a California startup that works with biomass power plants to produce biochar, then sells it to farmers.

Carbon-credit sales generate millions of dollars for some biochar businesses. Pacific Biochar struggled at first because the price was too high, roughly $600 a ton of biochar. That changed in late 2020 when the company started selling carbon credits for roughly $150 a ton of carbon dioxide removed to Microsoft and others. The extra revenue let Mr. Hunt cut prices and sales grew. Pacific Biochar's sales are expected to hit a few million dollars this year.

Companies are willing to pay many times more for removal credits like these than traditional offsets because there is more certainty they are removing carbon. Many offsets linked to projects such as keeping trees standing have been shown to have limited environmental benefits.The potential to remove large amounts of carbon and additional soil benefits make biochar credits attractive, said Brian DiMarino, JPMorgan's head of operational sustainability.

Biochar was used by farmers in South America thousands of years ago. They found that it helped soil retain water and nutrients. Most biochar is made using a process called pyrolysis that heats up organic matter while restricting levels of oxygen. Analysts estimate the U.S. currently produces roughly 100,000 tons of biochar a year, a fraction of what would be needed to make a dent against climate change. The U.S. emits about 6 billion tons of greenhouse gases a year.

One of the sector's biggest obstacles is making sure the carbon stays sequestered for hundreds or thousands of years. The length of time carbon stays sequestered through biochar can vary based on soil and microbial conditions.That uncertainty and some studies showing that the time could be shorter than expected have led to calls for the creation of an independent standards body to oversee the new market.

Governments and nonprofits are attempting to grow the nascent industry. The U.S. Agriculture Department recently said funding is available for farmers who apply biochar and meet certain conditions. The International Biochar Initiative is spreading the word to farmers and project developers in poor countries.

Tom and Tony Marrero, 50-year-old twin brothers, started Wakefield Biochar in 2014 with their father. Sales took off recently when the company signed contracts with big companies such as Koch Industries Inc.'s Georgia-Pacific LLC to dispose of their wood waste by turning it into biochar.

Wakefield Biochar has removed roughly 15,000 tons of carbon, the most in the industry,according to CDR.fyi, and generated a few million dollars in sales last year. Selling carbon credits to companies including JPMorgan and reinsurance firm Swiss Re AG has allowed the company to continue expanding its operations.

"All these things are happening partly because of our ability to be in the carbon market," said Tom Marrero, the company's president." [1]

1. Old Farming Practice Offers Carbon Credits --- Many companies are embracing biochar to offset their emissions of greenhouse gases
Ramkumar, Amrith.  Wall Street Journal, Eastern edition; New York, N.Y. [New York, N.Y]. 27 Feb 2023: B.1.