We had the opportunity to speak with Flo Oberhofer, COO of PyroCCS, about the current landscape and future prospects of the biochar industry. Our conversation touched on their pioneering efforts to deliver affordable and sustainable biochar solutions tailored to the Global South. In 2024, PyroCCS was recognized as one of the top 100 carbon removal innovators, and they have ambitious plans to scale their operations across the Global South over the coming decade.

Key Takeaways 

• PyroCCS’s core strength lies in providing robust, low-emission biochar technology specifically tailored for the Global South. Their solutions are not only cost-effective compared to US or European alternatives but also durable and specifically designed for the unique biomass resources and challenges in different regions across the Global South.
• Biochar sales alone are unlikely to make plants self-sustaining, even in the long term. The focus is on gradually reducing carbon credit prices to stimulate demand and achieve profitability in the future.
• There is a growing price gap between high-tech and artisan carbon credits, with oversupply concerns in the artisan sector, and market consolidation expected.
• Many buyers currently exploring the sector. However, as the market matures, increased understanding and stronger relationships are expected to drive greater corporate participation in carbon offsetting.

Introduction and Background

cCarbon: Thank you for joining us today. Could you start with a brief introduction to yourself?

Flo Oberhofer: I’m the COO of PyroCCS and Managing Director of PyroCCS India. I oversee our global operations, focusing on carbon standards and certifications. My background is in banking and finance, but my family’s ties to agriculture led me to biochar. I’ve been working in the Global South for over 10 years.

cCarbon: Can you provide a brief overview of PyroCCS’s work?

Flo Oberhofer: Firstly, we develop industrial projects in Namibia, converting abundant bush-pile biomass into biochar, primarily for soil application. We utilize our own technology, made for the global south, which is robust, easy to set up, and adheres to all the requirements of high-tech machinery.

We’re also active in developing the local biochar and bio-oil market, which has become a very strong revenue stream. We have one plant running, the first to generate a C-Sink in Africa. Our second plant is set to be certified by the end of this month, and we’ve secured financing for a third, expected to be operational early next year.

The second pillar of our work is Artisan Pro projects in India, where we repurpose agro-residues to reduce pollution. We manage 2 active projects with local partners, with 2 more being launched by the end of the year. The third pillar is offering solutions to project developers, including our own pyrolysis machinery, certified dMRV software systems, and other services.

cCarbon: Can you tell us more about PyroCCS’s recognition by the XPRIZE Foundation?

Flo Oberhofer: We were among the top 60 companies in the XPRIZE Carbon Removal Milestone competition in 2022 and were recognized as one of the top 100 carbon removal innovators in 2024. This recognition places us among the top 20 biochar companies and connects us with a community of innovators working towards scalable carbon removal solutions.

Technology and Market Differentiation

cCarbon: How does your biochar technology stand out in the market?

Flo Oberhofer: Our technology is robust and low emission, designed for woody biomass like invasive bushes in Namibia. It’s more affordable than U.S. or European technology. To be able to offer plant technology for all types of waste biomass streams in the Global South we are leveraging proven plant technology from Europe. We are making it cheaper for the Global South, to process finer biomass like nut shells and wood chips. Our strength is building affordable, durable plants specifically designed for biochar conversion in the Global South. Our biochar’s carbon removal potential is between 2.1 and 2.3 tCO2e per ton, which aligns with industry standards.

cCarbon: What about the pricing and economic feasibility of biochar?

Flo Oberhofer: There’s a growing price gap between high-tech and artisan carbon credits, with artisan prices falling while industrial credits remain high. We expect a necessity for prices to decrease significantly over time for a significant increase in the demand for biochar credits.

Despite our investment in biochar markets, it’s unlikely that biochar plants will become self-sustaining through biochar sales alone, even within the next decade. The industry still faces profitability challenges, even in markets like Europe where biochar is pricier. We’re targeting $100 for high-tech credits and $50 for Artisan Pro credits within eight to ten  years, with gradual reductions.

Key cost drivers include biomass and manpower, especially in the Global South, along with machinery costs for industrial biochar. While some costs may decrease with economies of scale, the overall cost structure is unlikely to change dramatically, and artisan project costs might even rise due to the need for advanced technology.

Market Dynamics and Challenges

cCarbon: How has the biochar market evolved recently?

Flo Oberhofer: Industrial projects are stable due to their complexity, but the artisan sector is rapidly expanding. We anticipate a significant oversupply of artisan credits, leading to a market consolidation within the next 12 to 18 months, with prices likely dropping. Low-quality projects, as noted in several reports, are a concern and may struggle to survive during this consolidation.

cCarbon: What are the biggest challenges and risks in the biochar market?

Flo Oberhofer: Low-quality projects, particularly in the artisan sector, pose a risk. Currently, credits can be sold at a reasonable price, but an oversupply in the artisan market is likely to change that. The industrial sector should remain more balanced, with good credits still selling well. However, as we scale up, demand must keep pace with these expansion plans.

cCarbon: How do you view permanence and additionality in biochar projects?

Flo Oberhofer: Additionality isn’t an issue in the Global South due to the absence of a developed biochar market, unlike in Europe. While biochar or bio-oil sales might impact additionality elsewhere, it’s not a concern for most projects in the Global South.

Permanence varies by standard. There are five main standards—Carbon Standards International, Puro, Gold Standard, Verra, and Isometric—each with its own approach. Currently, it is the H/C ratio, which is the ratio of Hydrogen to Carbon as an index for the aromaticity of biomass which determines permanence, but new methods are emerging. Carbon Standards International offers 1,000-year permanence for 75% of the C-Sink, and other registries like Isometric and Puro are also aiming for longer permanence, with everything pointing towards 1,000 years or more.

Scaling and Future Outlook

cCarbon: Who are the primary buyers of biochar credits, and how is the market shaping up?

Flo Oberhofer: Currently, many buyers are in exploration mode as they are trying to understand the sector, which includes understanding the differences in geographies, standards and approaches to biochar. Major buyers in the biochar sector include Microsoft, Milkywire, and others. As the market matures, we expect relationships to strengthen and more companies to prioritize offsetting.

cCarbon: What is your outlook and how do you navigate the complexities of scaling your operations?

Flo Oberhofer: We’re aiming for 1,000 plants by the end of the decade, with 400 own plants alone in Namibia. The 1,000 plants includes the combination of our own plants as well as the ones we are selling. We manage volatility by having strong biochar revenue but also through diversification. We are doing Artisan Pro in one area of the world, as well as industrial projects in another area of the world, with multiple revenue streams. We have integrated this volatility very early into our business model and are quite confident we can sit out these vulnerabilities and somewhat balance them to other areas.