Survey and Analysis of the U.S. Biochar Industry

Preliminary Report Draft; August 16, 2018 WERC project MN17-DG-230

Executive Summary
A survey and analysis of the U.S. biochar industry were commissioned by the U.S. Forest Service, through their Wood Innovations Grant Program. Two surveys were generated; one for producers and one for users. The surveys were composed using Survey Monkey and the U.S. Biochar Initiative distributed invitations and follow-up requests. Out of an estimated 135 biochar producers in the U.S., responses were received from 61, a 45% response rate; 58 responses from domestic biochar users were received.

The surveys are complementary in their results with two trends standing out:

• Growth in sales supported by a general optimism in the strength of the marketplace.
• A desire for more information and support from all types of resource entities.

The producer survey indicated the expected growth in year-to-year production is supported by the expectation of increased sales, higher prices, and the availability of feedstocks at affordable prices. This outlook is also bolstered by the expectation of users to increase purchases.

From a policy standpoint, producers cited recognizing biochar as carbon negative (and getting some financial credit for it) by almost 25% of the respondents. The second most repeated support need was to certify biochar as an animal feed supplement. Both the USDA and FDA were cited as important players in opening that market. It was noted by a number of respondents that biochar as a feed supplement is permitted in Europe already.

The users' survey provided a snapshot of an optimistic marketplace. Many of the smaller users left comments expressing their interest in learning more about biochar, about the broader marketplace, about how to market more effectively to grow their businesses, and for more in-depth information about research results (which could help both their understanding and marketing.) They also uniformly anticipated higher sales.

Responses to questions about what the industry/trade association, public policy, and the USFS specifically can do to support and grow the market provided particular insight. The most often cited historic support comes from IBI and USFS Wood Innovation Grants. Cooperative research initiatives with universities were noted by larger producers as helping to advance their progress while there was a widespread desire for more biochar-related research.

Both users and producers see the need for much higher profile education efforts—in support of biochar as a desirable and sought after product. The new market segment of biochar as an animal feed supplement is considered strongly for its potential to have a significant impact on both producers and resellers; however, resellers will likely see less effect since volume sales seem to be provided mostly from producers. More information on this market (current European experience, domestic customer interest, price points, and value-added opportunities) is needed to better predict how significant the animal feed supplement market could be. The same can be said for other currently minor segments with large potential markets: stormwater filtration, mine reclamation, and odor control.

The survey summary and highlights can be found in the attached files.