In the quest to mitigate climate change, scientists and economists are exploring innovative solutions to capture and store atmospheric carbon dioxide. One such promising avenue is biochar, a charcoal-like substance produced from plant matter and stored in soil. A recent study published in Carbon Management, the English translation of Carbon Management, has shed light on the economic feasibility of using biochar to enhance carbon stocks in Finnish agricultural soils, with implications for the broader energy sector.
Medilė Jokubė, a researcher from the Department of Economics and Management at the University of Helsinki, led the study. She and her team conducted a comprehensive economic analysis to determine whether biochar could be a viable option for carbon sequestration in an increasingly dry and warm climate scenario. The results, while promising, highlight significant economic challenges.
Biochar has the potential to safely capture and store carbon in soil for extended periods, making it an attractive option for climate mitigation. However, the study found that achieving economic feasibility with current carbon prices and biochar costs is a formidable task. “It is challenging to make biochar application economically feasible with the current market conditions,” Jokubė stated.
The researchers used Monte Carlo simulations to explore various scenarios. They discovered that to make biochar economically viable with a carbon subsidy at the level of the European Union Emissions Trading System (EU ETS) carbon price of 88 EUR/t CO2eq, the cost of biochar material would need to be reduced to less than one-third of its current average price. Alternatively, economic viability could be achieved if the subsidy paid to farmers was significantly higher than the current EU ETS carbon price.
“Economic viability could be achieved if the subsidy paid to the farmers was between two to nine times larger than the EU ETS carbon price for the current range of biochar market prices,” Jokubė explained. This finding underscores the need for substantial policy support to make biochar a competitive option in the carbon market.
The study also highlighted the potential for simultaneous increases in carbon prices and decreases in biochar costs to enhance feasibility. “Feasibility can be achieved by doubling the carbon price and halving the average biochar cost,” Jokubė noted. This dual approach could make biochar more attractive compared to other climate change mitigation measures.
Currently, the biochar market is thin, and a decrease in biochar cost is necessary to make it competitive. This research, published in Carbon Management, provides valuable insights for policymakers, farmers, and energy sector stakeholders. As the world seeks sustainable solutions to combat climate change, understanding the economic viability of biochar is crucial.
The findings of this study could shape future developments in the field by encouraging further research and investment in biochar production technologies. Policymakers may also consider increasing carbon subsidies or implementing carbon pricing mechanisms to make biochar a more viable option. For the energy sector, this research highlights the potential for biochar to play a role in achieving carbon neutrality, albeit with significant economic hurdles to overcome.
As the climate continues to warm and dry, innovative solutions like biochar will become increasingly important. The work of Jokubė and her team offers a roadmap for navigating the economic challenges associated with biochar adoption, paving the way for a more sustainable future.
