WestCARB Biochar Report Final
WestCARB Biochar Report Final
WestCARB Biochar Report Final
Prepared for: California Energy Commission Prepared by: The Climate Trust
SE P TE MBE R 20 10 CE C- 5 00 - 02 - 00 4
Prepared by: The Climate Trust Primary Authors: Peter Weisberg Matt Delaney Janet Hawkes The Climate Trust 65 SW Yamhill St, Suite 400 Portland, OR 97204 503-238-1915 www.climatetrust.org Contract Number: 500-02-004 Prepared for: California Energy Commission Beth Chambers
Contract Manager
Bryan Lee
Project Manager
Mike Gravely
Office Manager Energy Systems Integration and Environmental Research
Thom Kelly
Deputy Director Energy Research and Development Division
This report was prepared as a result of work sponsored by the California Energy Commission (Energy Commission) and the University of California (UC). It does not necessarily represent the views of the Energy Commission, UC, their employees, or the State of California. The Energy Commission, the State of California, its employees, and UC make no warranty, express or implied, and assume no legal liability for the information in this report; nor does any party represent that the use of this information will not infringe upon privately owned rights. This report has not been approved or disapproved by the Energy Commission or UC, nor has the Energy Commission or UC passed upon the accuracy or adequacy of the information in this report.
ACKNOWLEDGMENTS
The Climate Trust would like to thank the Department of Energy and the California Energy Commission for their support in initiating the West Coast Regional Carbon Sequestration Partnership (WESTCARB), the California Institute for Energy and Environment for guidance in execution of this report, and The Biophysical Society for providing additional funding to further explore the potential of biochar as a carbon sequestration project. The case study in this report was made possible thanks to the cooperation and support of John Miedema of Thompson Timber and Marc Vomocil of Starker Forests. The Climate Trust would also like to thank Tom Miles of TR Miles Technical Consultants, James Amonette of the Pacific Northwest National Laboratory, and Michael Cullen of Terra Global Capital for their technical guidance. Special thanks to Peter Kelly and Amy Phillips of The Climate Trust for editing and insight.
PREFACE
The California Energy Commission Public Interest Energy Research (PIER) Program supports public interest energy research and development that will help improve the quality of life in California by bringing environmentally safe, affordable, and reliable energy services and products to the marketplace. The PIER Program conducts public interest research, development, and demonstration (RD&D) projects to benefit California. The PIER Program strives to conduct the most promising public interest energy research by partnering with RD&D entities, including individuals, businesses, utilities, and public or private research institutions. PIER funding efforts are focused on the following RD&D program areas: Buildings End-Use Energy Efficiency Energy Innovations Small Grants Environmentally Preferred Advanced Generation Industrial/Agricultural/Water End-Use Energy Efficiency Renewable Energy Technologies
Carbon Market Investment Criteria for Biochar Projects is the final report for the West Coast Regional Carbon Sequestration Partnership Phase II project (contract number MR-06-03G, work authorization number MR-045), conducted by The Climate Trust. The information from this project contributes to PIERs Energy-Related Environmental Research Program.
For more information about the PIER Program, please visit the Energy Commissions website at http://www.energy.ca.gov or contact the Energy Commission at 916-654-4878.
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ABSTRACT
The Climate Trust conducted an assessment of biochar to determine its appropriateness as a terrestrial carbon sequestration offset project. Biochar is an inert residue created by pyrolysis with the potential to rapidly sequester large amounts of carbon. This report describes what types of biochar projects can most readily qualify as high-quality greenhouse gas offsets for carbon market buyers and investors. The offset quality criteria outlined by the Offset Quality Initiative (2008) are applied to the biochar project type as a whole and to a pilot project at the Thompson Timber log yard in Philomath, Oregon. This report finds that attractive projects must meet the following three criteria. First, projects must use waste biomass that, in the absence of a project, would be left to decompose. Second, projects must produce at least 25,000 metric tons of biochar over 10 years. Third, projects must be able to account for, track, and monitor where all the produced biochar is incorporated into the soil. When applying these criteria to the pilot project in Philomath, this report finds that the pilot project could be an attractive offset project if it were to scale up to use all available waste biomass and apply it to a limited number of landscapes.
Keywords: Terrestrial carbon sequestration, biochar, pyrolysis, climate change, carbon markets, greenhouse gas offsets, biomass, West Coast Regional Carbon Sequestration Partnership, WESTCARB
Please use the following citation for this report: Weisberg, Peter, Matt Delaney and Janet Hawkes. (The Climate Trust). 2010. Carbon market investment criteria for biochar projects. California Energy Commission. Publication number: CEC-500-02-004. iii
TABLE OF CONTENTS
EXECUTIVE SUMMARY ........................................................................................................................ 1 Introduction ............................................................................................................................................ 1 Purpose .................................................................................................................................................... 2 Project Objective ..................................................................................................................................... 2 Project Outcomes and Conclusions ..................................................................................................... 3 Recommendations.................................................................................................................................. 4 CHAPTER 1: Introduction to Biochar ................................................................................................... 5 1.1 Definition of biochar ........................................................................................................................ 5 1.2 Greenhouse gas emission reductions from biochar .................................................................... 5 1.3 Climate mitigation potential........................................................................................................... 7 1.4 Context for this report ..................................................................................................................... 8 CHAPTER 2: Offset Quality Criteria Applied to Biochar Projects ................................................. 9 2.1 Be additional ..................................................................................................................................... 9 2.1.1 Definition of additionality ....................................................................................................... 9 2.1.2 Developing a performance standard for biochar................................................................ 10 2.2 Be based on a realistic baseline .................................................................................................... 10 2.3 Be quantified and monitored........................................................................................................ 11 2.4 Be independently verified............................................................................................................. 13 2.5 Be unambiguously owned ............................................................................................................ 14 2.5.1 Emissions benefits that meet ownership requirements: waste diversion, carbon sequestration, and soil emission reductions................................................................................. 15 2.5.2 Emissions benefits that do not meet ownership requirements: reduction in electricity displacement, fertilizer manufacturing, and fossil fuel displacement ..................................... 15 2.5.3 Conclusions .............................................................................................................................. 16 2.6 Address leakage ............................................................................................................................. 16 2.6.1 Leakage from land-use change ............................................................................................. 16 2.6.2 Feedstock opportunities in the Pacific Northwest ............................................................. 17 2.6.3 Conclusions .............................................................................................................................. 18 iv
2.7 Address permanence ..................................................................................................................... 18 2.7.1 Accounting for the decomposition of biochar..................................................................... 18 2.7.2 Other unintentional reversals: fire and erosion .................................................................. 19 2.7.3 Intentional reversals: development, soil removal, intensive tillage................................. 19 2.8 Do no net harm ............................................................................................................................... 20 2.9 Summary of carbon market investment criteria for biochar project ....................................... 20 CHAPTER 3: Case Study of the TSY-Peak Biochar Pilot Project................................................... 23 3.1 Description of project hardware .................................................................................................. 23 3.2 Description of the feedstock ......................................................................................................... 26 3.3 Biochar system operations ............................................................................................................ 27 3.3.1 Inputs ........................................................................................................................................ 27 3.3.2 Outputs ..................................................................................................................................... 28 3.4 Economics ....................................................................................................................................... 29 3.5 Greenhouse gas emissions ............................................................................................................ 30 3.5.1 Sources of greenhouse gas emissions ................................................................................... 30 3.5.2 Sources of emission reductions ............................................................................................. 31 CHAPTER 4: Conclusion ....................................................................................................................... 32 4.1 Analysis of TSY-Peaks potential for carbon market investment ............................................ 32 4.2 Conclusion ...................................................................................................................................... 34 References and Resources ..................................................................................................................... 35
EXECUTIVE SUMMARY
Introduction
The West Coast Regional Carbon Sequestration Partnership (WESTCARB), led by the California Energy Commission, is one of seven U.S. Department of Energy regional partnerships working to evaluate, validate, and demonstrate ways to sequester carbon dioxide (CO2) and reduce emissions of greenhouse gases (GHGs) linked to global warming. The nascent carbon offset market offers a venue for directing funds to innovative terrestrial sequestration project concepts. However, such innovative projects must be validated against a set of criteria that are commonly used to determine the appropriateness and viability of the project concept in the carbon offset market. Heating organic material without oxygen in a process called pyrolysis thermo-chemically transforms biomass into a stable char residue that resists decomposition, while also producing oil and gas. This residue is called biochar when it is incorporated into soils as an agricultural amendment (Driver and Gaunt 2010; Lehmann 2007; Roberts et al. 2010). Biochar could provide a major contribution to the global effort to reduce GHG emissions; some estimates suggest it could mitigate as much as one-eighth of global GHG emissions (Woolf et al. 2010). Given the substantial timber resources in the region, many of the WESTCARB states (Alaska, Arizona, California, Nevada, Oregon, and Washington) are suitable candidates to host biochar projects. Biochar production reduces GHG emissions through the following pathways: 1. Sequestering carbon in biochar. Photosynthesis sequesters carbon in biomass as it grows. When this biomass decomposes, the carbon is released back to the atmosphere. If the biomass is instead converted through pyrolysis into biochar, the carbon originally sequestered in the biomass will be stored for a much longer time because much of the carbon in the biochar will not decompose for hundreds or thousands of years (Lehmann 2007). Biochar can slow the basic carbon cycle to sequester carbon for long periods of time, because it is significantly more inert than the original feedstock that created it. 2. Displacing fossil fuel energy with renewable energy. Pyrolysis also produces oils and gases that can be combusted to generate renewable energy. When biomass instead of fossil fuels create energyand it is harvested in a manner that does not increase land-use emissions it can avoid CO2 emissions. 3. Diverting waste from generating methane. Many biomass feedstocks that could be pyrolyzed currently decompose in the absence of oxygen under water or in landfills. Rice residues, green waste, and manure, for example, are commonly left to decompose in rice paddies, landfills, or lagoons (Woolf et al. 2010). This anaerobic decomposition 1
releases methane (CH4). Pyrolysis of these feedstocks prevents this anaerobic decomposition and avoids these CH4 emissions. Through these pathways, biochar has the potential to provide a material contribution to efforts to reduce the build-up of greenhouse gases in the atmosphere. Globally, it is estimated that, at its maximum sustainable potential, biochar could annually reduce 1.8 gigatons of carbon dioxide equivalent emissions (CO2e), or 12% of the worlds GHG emissions (Woolf et al. 2010). In the United States, pyrolyzing 40% of unused agricultural and forestry residues could reduce 230 million metric tons of CO2e, or around 8% of the annual GHG reductions needed to reduce domestic GHG emissions by 50% by 2050 (Roberts et al. 2010).
Purpose
Biochars potential will only be realized if biochar projects prove to be financially viable. One important step towards profitability is to enable biochar projects to monetize their climate benefits. Biochar projects could do this by selling GHG offsets to regulated emitters under a cap-and-trade system. The Offset Quality Initiative (2008) discussed nine criteria that must be met for projects to qualify as offsets under such a system. This report addresses how each of these nine citerion applies to biochar projects in general and to a specific case study in Philomath, Oregon.
Project Objective
The overall goal of WESTCARB Phase II is to validate and demonstrate the regions key carbon sequestration opportunities through pilot projects, methodology development, reporting, and market validation. WESTCARB research will facilitate informed decisions by policy makers, communities, and businesses on how to invest in carbon capture and storage technology development and deployment to achieve climate change reduction objectives. The sequestration opportunity presented here is producing biochar and applying it as a soil amendment.
Table 1: Essential carbon market investment criteria for biochar projects
Desirable quality Projects are fed by waste biomass that would otherwise be burnt or left to decompose. Feedstocks grown specifically for the biochar project are produced on marginal or degraded land. Feedstocks do not potentially contain heavy metals. Feedstocks do not consist of municipal solid waste, sewage sludge, or tires.
Carbon market rationale Leakage. Waste feedstocks (or feedstocks grown on marginal/degraded land) do not cause land-use change.
Pyrolysis process
Use of biochar
No net harm. Heavy metals could potentially be concentrated through pyrolysis and contaminate soils, damaging the environment and human health. Pyrolysis will generate at least 25,000 Verification. metric tons of biochar over ten years. Because many verification costs Bigger projects (100,000 metric tons of are fixed regardless of the size of biochar or more) are the most desirable. the project, verification costs are a smaller portion of the overall cost of large projects. Economies of scale favor large projects. Projects that produce less than 25,000 metric tons of biochar over their life will not be considered for carbon market investment unless a smallscale methodology and aggregation system is developed to reduce transaction costs. The biochar producer can account for, Monitoring and Permanence. track and monitor where all the biochar is De Gryze et al. (2010) suggest the incorporated into soils. Vertical most credible method to quantify integration, where the producer of the biochar projects is to measure the char is also the user of the char, is the quantity of biochar remaining in the most desirable. soil 1, 5, 10, 20 and 50 years after it is incorporated with the soil. Vertical integration makes this monitoring economically feasible. If projects are not vertically integrated, they must at least be able to easily track and account for where all the biochar is integrated into soils.
Using these investment criteria as a guide, this report evaluates a pilot-scale biochar project in Philomath, Oregon. The project, conducted at a log yard that currently produces 6,000 metric tons of waste woody biomass per year, met all but the following two investment criteria: 1. The project is too small. The pilot project is projected to produce 8 metric tons of biochar per year, while it is estimated that biochar offset projects will need to produce at least 25,000 metric tons of biochar over their lifetime, or around 2,500 metric tons per year. 2. The project plans to sell biochar to many entities, making it difficult to account for where all the biochar will be incorporated into soils. Given the quantity of waste biomass and land available to the log yard, however, it is feasible for the pilot project to scale into an attractive offset project. However, biochars economic and agronomic benefits are not yet sufficiently proven to justify this scale of investment. Study of the pilot project is a first attempt to make this justification.
Recommendations
As the biochar industry matures and starts producing at scale, projects are likely to be eligible to sell their climate benefits as GHG offsets to regulated emitters under a cap-and-trade program. This makes biochar a promising project type for pilot-scale investment and carbon market protocol development. A protocol will help enable the biochar industry to scale up and focus on maximizing the potential climate benefits of biomass utilization.
Description
GHG
% of Reductions 1 50-65%
Photosynthesis sequesters carbon in biomass as it grows. When this biomass CO2 decomposes, it releases the carbon back into the atmosphere. If the biomass is instead converted through pyrolysis into biochar, the carbon originally sequestered in the biomass will be stored for a much longer timefor hundreds or thousands of years depending on the characteristics of the biochar and the environment into which it is incorporated (Lehmann 2007). This is because biochar is significantly more resistant to decomposition than the biomass used to produce it. Pyrolyzing biomass therefore enhances carbon sequestration. The energy which can be produced from the gases and oils generated by pyrolysis can replace the combustion of fossil fuels. Pyrolysis could produce electricity (which would offset fossil-fueled power plants) or heat (which could replace thermal demand at or near the pyrolysis plant previously supplied with fossil fuels). CO2
Renewable energy
20-40%
Waste diversion
Many feedstocks, including rice residues, green waste sent to landfills and CH4 manure, are left to decompose without oxygen in rice paddies, landfills, and lagoons (Woolf et al. 2010). This anaerobic decomposition emits methane (CH4). Collecting and pyrolyzing feedstocks that would otherwise anaerobically decompose avoids CH4 emissions. Applying biochar to soils may reduce soil emissions of nitrous oxide (N2O) and N2O, increase the ability of soils to uptake CH4. These reductions are highly variable CH4 and the precise mechanism through which they occur is not yet fully understood (Van Zwieten et al. 2010).
0-20%
0-5%
Applying biochar to fields may reduce the need to apply other conventional CO2, Not quantified fertilizers. Many conventional fertilizers are energy intensive to manufacture. N2O Reducing the demand for fertilizers reduces its manufacture, thereby reducing CO2 emissions. When nitrogen fertilizers are applied to field, a small percentage of the nitrogen is emitted as N2O. Reducing nitrogen fertilizer applications also reduces N2O emissions.
Based on ranges reported in Woolf et al. (2010) and Roberts et al. (2010).
when displacing energy generated with coal. The emissions benefit of creating biochar rather than full combustion for energy will likely increase as the carbon intensity of the global energy mix lowers through the implementation of cleaner technologies. This may make biochar an essential mitigation technology for achieving additional GHG reductions. Biochar has the potential to play a significant role in the effort to mitigate climate change and warrants additional study, research, financing, piloting and implementation.
2.1 Be additional
2.1.1 Definition of additionality
Offsets are intended to credit only new emission reductions that are in addition to reductions that would have occurred without the incentive provided by a carbon market. Determining the counterfactual case of whether or not a project would have been implemented in the absence of a carbon market is unavoidably subjective. Carbon markets have developed two methods of assessing additionality: 1. Project specific analysis Project developers develop an additionality case that outlines a specific barrier, normally financial but also possibly technical or institutional, which impedes project development and is overcome by carbon finance. 2. Performance standard Protocol developers (such as the Climate Action Reserve, Clean Development Mechanism, or a future government regulatory
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The Offset Quality Initiative (2008) criteria that offsets be real is not included in this chapters analysis. Instead, all the requirements discussed in the chapter are an attempt to ensure that the offsets claimed by biochar projects are real.
body like the US Environmental Protection Agency or Department of Agriculture) develop uniformly applicable criteria that determine which types of projects are or are not additional. For biochar projects these criteria could be based on feedstock type, location, or regulatory environment.
2. The biomass used as feedstock to the pyrolysis unit in the project case is left to decompose in the forest, field, or compost pile in the baseline scenario. Decomposition would incorporate a portion of the feedstocks carbon into soil organic matter. Baseline calculations should therefore be based on a model of the decomposition of the feedstock that accounts for the carbon that would have been sequestered into soil organic matter. It is essential to incorporate baseline management of feedstocks in a biochar offset protocol. High quality biochar projects must be able to track how, in the absence of a project, their feedstocks would have been managed. This is likely to favor projects with simplified supply chains and waste streams; projects that receive many different feedstocks from many different places may struggle to establish a credible baseline.
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Mature protocol? No
Pertinent Protocols
Discussion
Carbon Golds proposed This proposed protocol has been criticized by the International protocol to the Voluntary Biochar Initiative 3 and De Gryze et al. 2010 as insufficient to Carbon Standard accurately quantify biochars carbon sequestration benefit. A new protocol to quantify the carbon sequestration of biochar is needed. Clean Development Mechanism Clean Development Mechanism The Clean Development Mechanism uses a variety of respected protocols to quantify the carbon benefit of renewable energy. These could be adapted to biochar projects. The Clean Development Mechanisms AMS- III.L. Avoidance of methane production from biomass decay through controlled pyrolysis is a protocol specifically for pyrolysis projects. It is limited to projects that reduce less than 60,000 metric tons of CO2e per year. The precise mechanisms through which biochar reduces N2O emissions and increases CH4 uptake are not fully understood. These reductions vary according to rainfall, temperature, land-use change, and plant growth behavior (Van Zwieten et al. 2010). There is currently insufficient understanding of this reduction to quantify its greenhouse gas benefit and monetize it as an offset. Developing a protocol to quantify this benefit could be relatively straightforward so long as the quantity of fertilizer saved is clear and easy to document.
Renewable energy
Yes
None
No
None
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Description
Location of Reduction
The feedstock would have produced CH4 Upstream. Yes. if left to decompose anaerobically instead Experienced by owner of of being used by the biochar project. the feedstock, whose decomposing feedstock would otherwise generate CH4. Conversion of biomass to biochar keeps carbon sequestered by preventing the biomass from decomposing and releasing CO2. Upstream. Yes. Experienced by owner of the feedstock, whose decomposing feedstock would otherwise generate CO2. Yes.
Carbon sequestration
Applying biochar to soils may reduce soil Downstream. emissions of N2O and CH4. Experienced by the farmer utilizing the biochar. Applying biochar to fields may reduce the need to apply other conventional fertilizers, which are energy intensive to manufacture. Reducing the demand for fertilizer reduces fertilizer manufacturing, thereby reducing CO2 emissions. Not Part of Supply Chain. Experienced by many different manufacturers of conventional fertilizers.
No, unless it is determined that fertilizer manufacturers are not covered under a capand-trade system.
Electricity displacement
Electricity produced by biochar projects could offset electricity produced by other fossil-fueled power plants that no longer have to supply the same quantity of electricity to the grid.
Not Part of Supply Chain. No. Experienced by many different power plants supplying electricity to the grid. No, unless it is determined that the displaced fuel is uncapped by a state or federal cap-and-trade program.
The heat produced by biochar projects The pyrolysis plant. may fulfill thermal demand at the pyrolysis plant that was previously supplied with fossil fuels.
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In order to sell an offset credit, a project developer must develop clear and uncontested title to the emission reductions that result from the biochar project. Projects reduce emissions at multiple points along the supply chain, and there is potential for multiple entities to claim the same reductions if the supply chain isnt vertically integrated. To avoid this outcome, any project developer selling an offset credit must have attained unambiguous and documented proof of ownership from any other entity with a potential claim to the emission reductions. This project developer could be the owner of the feedstock, the pyrolysis plant or the user of the biochar. Table 4 outlines six different emission reductions that result from biochar projects, discusses where the actual reduction occurs (upstream or downstream from the biochar manufacturer), and determines whether the reduction can be credited as an offset.
2.5.1 Emissions benefits that meet ownership requirements: waste diversion, carbon sequestration, and soil emission reductions
Of the three entities that have potential claims to the emission reductionsthe owner of the biomass feedstock, the owner of the pyrolysis plant, and the farmer who applies the biocharit makes the most sense for the pyrolysis plant owner to claim the reduction. If this is the case, the plant owner must obtain contracts with the other parties to demonstrate clear and uncontested right to the reduction. These contracts would need to be produced at the time the offset is sold. Similarly, if either the feedstock owner or the landowner applying the biochar wants to sell the reduction, they would need to obtain clear and uncontested rights to the reductions from the other parties and produce those contracts when they sell the offsets. In many biochar projects, the feedstock owner, pyrolysis plant, and user of the biochar are the same entity. These vertically integrated projects do not face any ownership ambiguity and are therefore the easiest to implement. They are likely to be the easiest projects to monitor and verify as well for the reasons in Section 2.7.1.
2.5.2 Emissions benefits that do not meet ownership requirements: reduction in electricity displacement, fertilizer manufacturing, and fossil fuel displacement
Three of the reductions achieved by a biochar project could have ownership claims placed on them by entities that are likely to face GHG reduction requirements from a cap-and-trade program or similar policy. These entities would be in the electricity, fertilizer production, and fossil fuel distribution sectors. If these sectors are capped, portions of the reductions achieved through the biochar projects existence will make it easier for these sectors to comply with their cap. As such, these portions of reductions will be ineligible to generate offsets because they will be claimed under the cap. Until it is determined whether a U.S. cap-and-trade scheme covers fertilizer production and fossil fuel distribution, offsets that represent these benefits should not be sold. However, the electric sector has already developed a complementary mechanism to monetize the benefit of
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renewable energy generation called Renewable Energy Certificates (RECs). Biochar projects should take advantage of that mechanism by selling RECs for the electricity they produce.
2.5.3 Conclusions
A project developer can claim clear, uncontested, and unambiguous ownership over the emission reductions that result from waste diversion, carbon sequestration, and soil emission reductions. These reductions occur upstream and downstream of the pyrolysis plant. If the plant is the entity claiming and selling these reductions, it must obtain contractual title to the reductions to ensure the feedstock owner and the user of the biochar do not double count reductions. A project developer cannot claim unambiguous title to the reductions that result from electricity displacement, reduction in fertilizer manufacturing, and fossil fuel displacement. The means through which electricity producers, fertilizer manufacturers, and fossil fuel distributors will claim ownership over these or any reductions depends upon the type of GHG regulation that emerges at the state and federal level. Until this regulation is clear, biochar project developers should not claim these reductions.
The economic modeling needed to accurately account for the direct and indirect land-use impacts of projects that utilize biomass feedstocks with other beneficial uses is still in its infancy. When different models analyze the same project, they produce disparate results. Roberts et al. (2010) compared the land-use impacts of a biochar project feed by switchgrass (a bioenergy crop) using two different models. One model estimated land-use change leakage to 16
be more than twice as large as the other (0.89 metric tons of CO2e versus 0.41 metric tons of CO2e for each ton of swtichgrass used by the project). Accurate accounting for land-use change requires more study before it can be integrated into a protocol for biochar projects. Feedstocks that, in the absence of a project, will simply be burnt without generating energy or left to decompose do not cause land-use change. Due to high collection and transportation costs, lots of biomass is simply considered waste that is either burnt or left to decompose. These feedstocks do not need to account for leakage and have a correspondingly greater emission benefit. Until accounting protocols for land-use change mature, biochar project that use feedstocks without any alternate beneficial use will be the most attractive for carbon market investment. In agreement with these recommendations, De Gryze et al. (2010) recommend focusing protocol development on the following feedstocks: 1. Corn stover (waste leaves and stalks of the corn plant) that is left to decompose in the field in the absence of a biochar project. 2. Switchgrass that is grown on marginal/degraded land. 4 3. Yard waste that is landfilled or composted in the absence of a biochar project. 4. Wood waste that is left to decompose in the absence of a biochar project.
This switchgrass is not a waste product, but De Gryze limits it to switchgrass grown on marginal/degraded land because using this land does not displace food or timber production and therefore does not cause land-use change.
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2.6.3 Conclusions
The largest potential source of leakage for biochar projects is land-use change. Feedstocks that affect the market for timber, wood products, or food are the most likely to create direct and indirect land-use change. Methodologies to account for this land-use change are immature and therefore cannot be trusted for offset accounting. Carbon markets should, at this time, only credit biochar projects that utilize feedstocks that are unlikely to cause land-use change. These feedstocks include agricultural residues, yard waste, and wood waste that, in the absence of a biochar project, are burned or left to decompose.
Compared with other strategies to sequester carbon, like forestry or soil carbon projects, biochars risk of reversal is low because it sequesters carbon in a more stable form that is resistant to reversal.
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10, 20, and 50 years after biochar is applied to soils. Offsets are delivered to the project developer as greater certainty develops, through monitoring and modeling. A full description of this methodology, which is beyond the scope of this paper, can be found in the Monitoring of Biochar Carbon in Soils section of De Gryze et al. (2010). The requirement for long periods of on-site measurement of biochar represents a significant limitation to owners of pyrolysis plants that want to sell biochar on the retail market to nurseries, gardeners, farmers, and other small-scale buyers. To sell offsets, pyrolysis plants must be able to account for and track where all of the biochar produced is incorporated into soils. This biochar must then be monitored and verified over a 50-year period. This requirement will make vertically integrated projects (that use all biochar they produce) the most attractive projects for carbon investment. Other projects that produce biochar and sell it to a limited number of buyers will also likely be eligible, so long as they can account for where the biochar they have sold is now incorporated into soils. Retail biochar producers, whose biochar is incorporated into many different soils, will not be eligible to generate offsets because tracking and monitoring all soils where it would be applied would be prohibitively costly and complicated. The monitoring methodology suggested by De Gryze et al. (2010) is one suggested approach, and the implications of it are carried throughout this report. Because this methodology prohibits so many types of biochar projects from participating in the carbon market, alternative approaches may need to be investigated.
Project Implementation Agreement. A similar contract with the landowner who incorporates biochar into their soils will need to be developed. Attaining commitment from the entity that will incorporate biochar into their soils to not develop the land, remove soil, or intensively till their land over the next 100 years will likely significantly limit the number of entities interested in selling offsets from biochar projects. This commitment, however, is essential to ensuring the permanence of biochar projects.
Table 5: A summary of carbon market investment criteria for biochar projects
Desirable quality Projects are fed by waste biomass that would otherwise be burnt or left to decompose. Feedstocks grown specifically for the biochar project are produced on marginal or degraded land. Feedstocks do not potentially contain heavy metals. Feedstocks do not consist of municipal solid waste, sewage sludge, or tires.
Carbon market rationale Leakage. Waste feedstocks (or feedstocks grown on marginal/degraded land) do not cause land-use change, for which carbon accounting is immature. No net harm. Heavy metals could potentially be concentrated through pyrolysis and contaminate soils, damaging the environment and human health. Baseline. Baseline accounting must account for any energy generated by a feedstock before the project was implemented and any portion of the feedstock that was incorporated into the soil organic matter. Ownership. This ensures the project developer will not double count the reductions of the project. Additionality. Verification. Because many verification costs are fixed regardless of the size of the project, verification costs are a smaller portion of the overall cost of large projects. Economies of scale favor large projects. Projects that produce less than 25,000 metric tons of biochar over their life will not be considered for carbon market investment unless a small-scale methodology and
Projects can track how their feedstock was managed before the implementation of the biochar project and forecast how it likely would have been managed in the absence of project implementation.
The seller of the offsets can obtain clear contractual title to the emission reductions that result from waste diversion and carbon sequestration from the original owner of the feedstock. Regulatory environment Pyrolysis process Projects are not required to be implemented by law. Pyrolysis will generate at least 25,000 metric tons of biochar over ten years. Bigger projects (100,000 metric tons of biochar or more) are the most desirable.
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aggregation system is developed to reduce transaction costs. Use of biochar Projects incorporate biochar into soils. Stable soils that are unlikely to erode during extreme weather events are most desirable. Permanence. Biochar faces less of a risk fire or erosion, and therefore unintentional reversal, when it is incorporated into soils. Permanence. Carbon must remain sequestered for 100 years. This cannot be guaranteed if development, intensive tillage, or soil removal occurs. Monitoring and Permanence. De Gryze et al. (2010) suggest the most credible method to quantify biochar projects is to measure the quantity of biochar remaining in the soil 1, 5, 10, 20, and 50 years after it is incorporated with the soil. Vertical integration makes this monitoring economically feasible. If projects are not vertically integrated, they must at least be able to easily track and account for where all the char produced is integrated into the soils.
Entity using the biochar is willing to contractually obligate him/herself to not develop, intensively till, or remove the soil in which biochar will be incorporated for the next 100 years.
The biochar producer can account for, track, and monitor where all the biochar is incorporated into soils. Vertical integration, where the producer of the char is its user of the char, is the most desirable.
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Figure 1. Project diagram. Solid line arrows indicate flows of material (logs, chips, biochar). Black arrows indicate flows of energy (diesel fuel, electricity for the system motors, or combustible gases). Dashed lines indicate current product uses for the wood waste. (Adapted from Roberts et al. 2010)
Timber harvesting
Log processing
Biochar
Horticultural trade
Burner
Landscape d Compost
Kraft paper
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A Fluidyne Pacific Class down-draft gasifier provides thermal drive for the entire system. The gasifier utilizes a small portion of the oversized wood chips that are screened out during the chipper plants sorting process. These chips are air dried to 15% moisture. Wood chips are thermally reduced in a high temperature, low oxygen environment, to yield a relatively low heat value combustible gas known as producer gas. At approximately 164 BTU per standard cubic foot, producer gas by volume has around one-seventh the heat energy of natural gas. However using this pathway the thermal requirements of the pyrolytic retort can be achieved with low value biomass. The gas is ignited and then used to heat the pyrolytic retort.
Figure 2. Fluidyne Gasifier (left background, metallic surface) and pyrolytic retort (right front, black paint) in the log-sorting yard of Thompson Timber/Starker Forest, Philomath OR.
Photo Credit: John Miedema
The second hardware component in the system is called a pyrolytic retort (PR). The PR consists of two steel tubes, one nested inside the other, approximately 8 feet in length and 13 feet in height. The inside of the outer tube is lined with fire bricks to a height of 3 feet. Inside is a second smaller tube where hog fuel is loaded. The inner tube also has an auger that mixes the
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hog fuel to ensure that it pyrolyzes at an even temperature during biochar production (Figure 2). The PR was constructed with scrap metal and parts from the forest mill site with other materials being added as needed (tubing, valve boxes, and temperature gauges). The PR can be loaded with up to 400 pounds of biomass feedstock, but approximately 200 pounds are used per run. The third components are small electric production motors used to run the system. The gasifier uses a start up motor, two cooling motors and a shaker motor. The PR uses a blower motor and a hydraulic unit to power a mixing auger. Each eight hour work day the motor systems use approximately 2.468 kilowatt hours (kWh) of electricity.
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Figure 3. Wood waste used in the TSY-Peak biochar system. Left is the hog fuel used to power the gasifier. Right is the waste biomass currently left to rot in the log yard, which feeds the pyrolytic retort.
Photo Credit: Matt Delaney (left) and Peter Weisberg (right)
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Figure 4. Air-dried hog fuel used in the TSY-Peak biochar system Photo Credit: Matt Delaney
Oversized wood chips that are dried to 15% moisture content are loaded into the top of the gasifier. A small bed of charcoal is placed at the bottom of the gasifier manifold. The gasifier is started by turning on the blowing motor which forces air over the charcoal bed. The draft mechanism draws a sub-stoichiometric amount of ambient air across the hearth of charcoal which is then lighted by a propane torch. This results in a high temperature oxidation zone with a lower temperature (about 850o C) anoxic reduction zone just below. Combustible producer gas, the outcome of this gasification process, is fed through a high temperature flexible hose (approximately 2 inches in diameter) to a burner inserted in the base of the PR. The resulting ~ 1200o C flame and combustion gases circulate around the outside of the inner PR tube. Over a short period of time, the PR reaches a sufficient temperature to start producing biochar. The auger motor turns the PR material to maintain even temperatures. Pyrolysis oils and gases produced within the PR are re-circulated from the top of the tube back into the combustion chamber at the base of the retort, where they are burned to maintain the desired operating temperature. If temperatures begin to exceed desired parameters these gases are flared in by auxiliary burner, which is illustrated by the flame in Figure 2.
3.3.2 Outputs
Approximately 120 pounds of gasifier wood chips and 200 pounds of wood waste are used per run, with an output of approximately 52 pounds of biochar. On a bone-dry basis, this is a 19% yield. Considering just the pyrolytic retort (again on a bone-dry basis) an average of 31% yield of biochar from the wood waste is achieved. Other systems average 30% yields with ranges of 28-33% depending on the feedstock (Roberts et al. 2010). The resulting biochar is approximately 0.5 to 1.5 inches in size (Figure 5). The TSY-Peak project currently anticipates loading 27 metric 28
tons of feedstock into the PR each year it operates at its current scale; at this rate, the plant should produce 8.25 metric tons of biochar per year. The operators of the TSY-Peak project plan to sell the biochar to research universities, to apply the char to portions of their own forests 15 to 50 miles away, and to sell the biochar for other horticultural applications.
Figure 5. Biochar product produced by the TSY-Peak system. Photo Credit: Matt Delaney
Waste heat generated by the PR is currently not utilized on-site, but the company is investigating small-scale electrical production. The hot exhaust gases are also not currently utilized (other than to heat the PR) but Thompson Timber has begun the construction of an enclosed chamber to dry and preheat the fuel inputs using these gases.
3.4 Economics
Capital costs for the TSY-Peak project are very low. Other than the gasifier, which was purchased as a unit, the motors and PR were modified from equipment that was available on the Thompson Timber log yard. This kept capital costs extremely low, at an estimated $59,000. Below are the line-item costs: Fluidyne Pacific Class down-draft gasifier: $15,000. Pyrolytic retort: $13,000. Motors: $0 (modified from unused motors at the log yard). Labor: $31,000.
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Annual operations and maintenance costs are estimated to be $33,324. Major costs are saved through utilizing waste feedstock. Maintenance: $3,000. Estimated at 3-5% of the capital costs (De Gryze et al. 2010). Labor: $30,000. Opportunity cost of feedstock: $324. An estimated 16.2 metric tons of wood chips are used per year to feed the gasifier. The log yard could alternatively sell these chips for an estimated $20/ton. The feedstock fed into the PR has no opportunity cost, because without the project it would be left to rot in the log yard. Annual revenue is currently limited to the biochar produced by the pilot system. The system is currently projected to produce 8 metric tons of biochar a year. While the value for biochar is uncertain, biochar for researchers and nurseries has sold for $200/ton (Miles 2009) to $500/ton. Annual biochar sales: $1,600 - $4,000
Emissions from harvesting and transporting the feedstock to the pyrolysis plant are not included in this accounting because waste biomass and hog fuel are created with or without the pyrolysis process. The biochar project therefore does not increase harvesting or transportation emissions. If they did, these GHG emissions are relatively smallaround 0.34 mt CO2e/metric ton of biochar produced by the plant, based on the assumptions of Manomet (2010). Emissions associated with transporting the biochar from the Thompson Timber log yard to the forest where it is applied are also not included in this accounting. Trucks from the log yard must go back to the forests to collect additional logs. While these trucks currently return empty, under the project scenario they will return with biochar. It is therefore assumed that the biochar projects do not add any transportation emissions to return biochar to the soils.
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Emissions from combustion of the pyrolysis oils, pyrolysis gases and the producer gas are not included in the accounting above. All of the combustible gases, the producer gas from the gasifier, and the pyrolysis oils and gases evolving from the top of the pyrolytic retort are captured and fed to the combustion chamber surrounding the base of the unit. An auxiliary burner flares excess combustible gas. All combustible gases developed in the TSY-Peak system see a flame front prior to exiting the system to the atmosphere, so no methane in the pyrolysis gases and producer gases is released to the atmosphere.
Testing the amount of carbon in the biochar produced by the TSY-Peak biochar system is underway currently and the results are not available at the time of publication, but studies of biochar indicate increasing carbon content by pyrolysis temperature, ranging from 55% to 93% (McLaughlin et al 2009; Okimori 2003). Researchers at Oregon State University conducted an analysis of ponderosa pine wood chips and found a similar pattern, with biochar carbon content ranging from 50% to 92% with pyrolysis temperatures ranging from 100 oC to 700 oC (Keiluweit et al. 2010). The operating temperatures of the TSY-Peak biochar system is approximately 500oC, so a carbon content of 80% or, approximately of 2.93 mt CO2 is kept out of the atmosphere, per ton of biochar. Based on Roberts et al. (2010), it is assumed that 80% of the carbon in the biochar remains sequestered over 100 years. Project-specific monitoring of the biochar over time will be needed in order to accurately measure and then model this decomposition as discussed in Section 2.7.1. The TSY-Peak project has no renewable energy or waste diversion benefits. The project is not yet generating any energy from the syngas or waste heat. The waste biomass and hog fuel are left to decompose aerobically in the absence of the biochar project, so there are no methane reductions associated with managing this feedstock with pyrolysis.
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CHAPTER 4: Conclusion
Building from the description of the project in the previous chapter, the conclusion of this report will analyze the TSY-Peak project under the carbon market investment criteria of Chapter 2 and then summarize the lessons learned from this case study.
Project component Feedstock Desirable quality Projects are fed by waste biomass that would otherwise be burnt or left to decompose. Feedstocks grown specifically for the biochar project are produced on marginal or degraded land. Criterion met by TSY-Peak? Yes. The Thompson Timber log yard annually generates 6,000 metric tons of waste biomass and hog fuel that is currently left to decompose in the log yard or as a yard amendment. Before the project, the hog fuel was not used as an energy source. Utilizing this feedstock for biochar will not cause direct or indirect land-use change. Yes. The hog fuel and wood waste used by the project does not contain heavy metals. Yes. All feedstock comes from the Thompson Timber log yard, which can easily document how it has been managing its wood waste and hog fuel.
Feedstocks do not potentially contain heavy-metals. Feedstocks do not consist of municipal solid waste, sewage sludge or tires. Projects can track how their feedstock was managed before the implementation of the biochar project and project how it likely would have been managed in the absence of project implementation.
The seller of the offsets can obtain clear contractual title to the emission reductions that result from waste diversion and carbon sequestration from the original
Yes. The pyrolysis plant and feedstock owners are the same entity, so there is no potential for double counting.
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owner of the feedstock. Regulatory environment Pyrolysis process Projects are not required to be implemented by law. Pyrolysis will generate at least 25,000 metric tons of biochar over ten years. Bigger projects (100,000 metric tons of biochar or more) are the most desirable. Yes. The project has been implemented voluntarily. No. The pilot program is currently projected to generate 8 metric tons of biochar per year, or 80 metric tons over 10 years. (See discussion below on the potential to scale the project.) Yes. Thompson Timbers nearby upland forests have slopes between 3% and 60%. Sufficient forest space should be available to only incorporate biochar in areas that do not face the possibility of major landslides. Likely yes. Starker Forests, which supplies the material for the Thompson Timber log yard, are highly productive forests that have been used as timberland for nearly 100 years. No. The pilot program plans to sell biochar to a variety of researchers, nurseries, and farms. (See discussion below.)
Use of biochar
Projects incorporate biochar into soils. Stable soils that are unlikely to erode during extreme weather events are most desirable.
Entity using the biochar is willing to contractually obligate him/herself to not develop, intensively till, or remove soil from the soil in which biochar will be incorporated for the next 100 years. The biochar producer can account for, track, and monitor where all the biochar is incorporated into soils. Vertical integration, where the the producer of the char is also the user of the char, is the most desirable.
The TSY-Peak project passes all the investment criteria outlined except two: 1. The pilot project is too small. It is projected to produce 8 metric tons of biochar per year, while it is estimated that biochar offset projects will need to produce at least 25,000 metric tons of biochar over their lifetime, or around 2,500 metric tons per year. 2. The project plans to sell biochar to many entities, making it difficult to account for where all the biochar is incorporated into soils. The quantity of waste biomass available at the Thompson Timber log yard opens the potential for a larger project which could qualify for offset funding. The log yard current produces 6,000 metric tons of waste biomass per year. A much larger pyrolysis plant that converts 30% of the biomass input into biochar could produce 1,800 metric tons of biochar per year with this waste alone. By bringing in additional waste, a larger TSY-Peak project could operate at a scale that is attractive for carbon investment.
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This larger project would also need to simplify the number of entities to whom it sells biochar in order to qualify for carbon finance. This, too, is a possibility. There are approximately 60,000 acres of forests owned by Starker Forests, on which biochar could potentially be applied. The amount of biochar applied per acre varies but one common suggestion is 10 metric tons of biochar per acre (De Gryze et al. 2010; Blackwell et al. 2010). In this scenario, the forest lands associated with the log yard alone could demand 600,000 metric tons of biochar.
4.2 Conclusion
Given the availability of significantly more feedstock and land, it is feasible for the TSY-Peak project to scale into an attractive offset project. This would require commitment to pyrolyzing all available material at the log yard and applying at least 25,000 metric tons of biochar to available forest land. Biochars economic and agronomic benefits are not yet sufficiently proven to justify this scale of investment. The TSY-Peak project is an attempt to begin proving these benefits. Revenue from offset sales alone is not enough to drive this investment. If each metric ton of biochar results in approximately 2 metric tons of CO2e reductions, at an assumed offset price of $6/metric tons of CO2e, offset sales are only $12/metric ton of biochar produced. A cap-and- trade system could raise prices to $15 to $40/metric tons of CO2e, or $30 to $80/metric ton of biochar produced. The TSY-Peak project sold biochar for research or agricultural applications at $200 to $500 per metric ton. A long-term buyer willing to purchase a large quantity of biochar at these prices is the fundamental driver for the economics of these early stage biochar projects that face an uncertain market for their product. That said, carbon offset sales can add another significant revenue to biochar projects. Given the potential of biochar to sequester carbon, generate renewable energy, increase soil productivity, and provide jobs in natural resource-based rural economies, policy makers, investors, engineers, agronomists and carbon market participants should focus on developing the sector. Pilot projects that prove these benefits are the essential next step for the industry. During this early stage of project implementation, a carbon market protocol to qualify the right subset of biochar projects and quantify their carbon sequestration and waste diversion benefits must be developed. This protocol could add an additional revenue stream to biochar projects, accelerating their implementation by increasing economic profitability, and aligning the economic incentives needed for these projects to maximize their climate benefits.
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