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The Value-chain of Biochar : Case developement and value validation for providers and customers from an environmental, economic and social perspective

The growing need for climate mitigation solutions has contributed so thatbiochar has gained significant interest. Primary for its ability as a carbon sinkbut there is also a growing interest due to several other aspects within industriese.g. substitution effects, increased resource efficiency, an enabler forindustrial symbiosis, and its beneficial properties when put in soil that can increasegrowth. Previous studies of biochar have been dominant within the environmentalperspective of biochar, analyzing detailed characteristics of its propertiesand carbon sink potential. Some studies have a holistic perspective reflectingon countries specific energy mix and the different benefits of producingbiochar. However, previous studies are far too few to determine the value-chainof biochar. Hence previous studies have knowledge gaps within the holistic lifecycle approach from a provider or customer perspective of biochar, not reflectingon demand for quality requirements in different utilization areas and markets.The need for validation of the environmental and the economic performanceof biochar has to be established, and the economic perspective of biochar hasmajor knowledge gaps since previous studies are scarce. The study aims to establish the value-chain of biochar by evaluating theenvironmental, economic, and social perspectives through life cycle thinking.The core of the study is to distinguish value, which first has to reflect thebiochar quality requirements from providers and customers, captured throughinterviews and literature research. The quality requirements enable a goal forproducing biochar and determine what processes and biomass are needed fordifferent markets. This is evaluated through a case development which considersthe different quality requirements. Life cycle assessment (LCA) with acradle-to-grave perspective and life cycle costing (LCC) with a cradle-to-gatewere then used to distinguish biochar´s environmental and economic performance. The interviews and researched literature resulted in three cases being developed,biochar application in electric arc furnaces in steel production, agriculturalapplication, and commercial application through biochar-macadam. Thesteel industry has higher quality requirements due to the need to have a similarcomposition as fossil coal, resulting in biochar produced from wood being theonly option. The limitations for agricultural application are more related tothe allowed amount of phosphorus per ha and thus all the researched biocharapplies to different degrees. Biochar application in biochar-macadam is similarto agricultural application, however limited due to the EBC certification notallowing the production of biochar from sludge. The generated results from the LCA show that the climate performance isvastly different depending on what biomass was utilized and the different markets.Biochar produced from park and garden, and wood results in a higher climateperformance due to the higher carbon sequestration compared to biocharproduced from straw and sludge, however depending on how the biocharis utilized, the performance varies. During biochar application in electric arcfurnaces, the majority of the produced carbon sink is destroyed which resultsin worse climate performance, instead the majority of the reduced emissionscomes from the substituted fossil coal. Compared to biochar application inagricultural and biochar-macadam where the carbon sink stays intact, steel applicationstill has worse climate performance even when including substitution.Biochar-macadam production results in more emissions compared to agriculturalapplication due to the need to mix biochar with stones and compost,thus biochar in agriculture is the best option from a climate perspective. The economic aspects are generated through the conducted LCC which resulted inbiochar produced from park and garden, and sludge being more beneficial dueto the absence of acquisition costs. Production of biochar from wood provesto be difficult when considering a larger time frame, with the market for steelproduction not returning the investment. Biochar produced from straw hasa positive return on investment when considering the agriculture market, butnot for the production of biochar-macadam. The results show that the marketof biochar is very uncertain due to being considered immature and a futuremarket. The major uncertainty is connected with the immaturity of the market.The quality requirements are not reflected in the market pricing which isone of the major reasons for biochar utilization in the steel industry not beingeconomically beneficial. The value chain of biochar is a combination of many different economic,environmental, and social values. The conducted LCA shows that there areclimate benefits due to carbon sequestration, and a possibility to replace fossilreferences. Other than biochar there are also by-products such as heat and oilwhich can be utilized, improving the climate performance further. The multipleproducts also have economic benefits due to the potential of creating multipleproducts. The carbon sink can be sold as carbon credits, and the heat can beutilized in district heating. For providers, the creation of biochar is an enablerto reduce environmental impact, utilize products already within the system,and create value from waste. The structure of biochar generates a lot of valuefor customers. The porosity enables water storing capabilities which increasesthe efficiency of watering. This reduced the amount needed for soil applications,while also securing the harvest from drought and flooding. Even though thevalue chain of biochar shows that there is a lot of potential, it is still uncertainhow it will be integrated into society, and how the market will be shaped in theyears to come.

Identiferoai:union.ndltd.org:UPSALLA1/oai:DiVA.org:liu-205644
Date January 2024
CreatorsEriksson, Markus, Engel, Samuel
PublisherLinköpings universitet, Industriell miljöteknik
Source SetsDiVA Archive at Upsalla University
LanguageEnglish
Detected LanguageEnglish
TypeStudent thesis, info:eu-repo/semantics/bachelorThesis, text
Formatapplication/pdf
Rightsinfo:eu-repo/semantics/openAccess

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