The industrial biochar market is facing unprecedented tightness as corporate buyers scramble for durable carbon storage solutions. According to recent data, 89% of 2025 carbon removal credits from high-quality biochar projects are already committed, a sharp increase from 62% in March 2025. This rapid sell-out underscores strong corporate appetite but raises alarms about potential supply shortages and price volatility in the voluntary carbon market (VCM).
What is Biochar Carbon Removal?
Biochar is a charcoal-like substance produced by heating biomass (such as agricultural waste or forestry residues) in a low-oxygen environment through a process called pyrolysis. When applied to soil, it sequesters carbon for centuries to millennia, making it a highly durable form of carbon dioxide removal (CDR). Beyond carbon storage, biochar offers co-benefits like improved soil health, enhanced water retention, reduced fertilizer needs, and biodiversity support. In 2024, biochar accounted for 86% of CDR deliveries, highlighting its scalability and accessibility compared to technologies like direct air capture (DAC).
Carbon removal credits from biochar projects allow companies to offset emissions by funding verified sequestration. High-quality credits emphasize sustainable feedstock, rigorous measurement, reporting, and verification (MRV), and long-term permanence (at least 100 years). Standards like Puro.earth, Verra, and Isometric ensure integrity.
The Rapid Sell-Out Phenomenon
Marketplace data tracking over 80% of global biochar supply reveals that only 11% of top-tier 2025 credits remain available on the open market. This marks a dramatic escalation from earlier in the year, with commitments rising from 62% in March to 89% by September 2025. Even 2026 supply is tightening, with 40% already locked into offtake agreements. High-integrity projects are nearly fully sold out, while lower-quality ones languish unsold.
In August 2025 alone, significant deals included Exomad Green’s sale of 25,000 tonnes via Supercritical—the largest biochar spot deal to date—and Altitude’s agreement for 50,000 tonnes from Southeast Asian facilities. Bio-Logical also secured a 15,000-tonne offtake with Rubicon Carbon for delivery by 2027. These transactions reflect biochar’s dominance, comprising 43% of durable CDR deliveries to date.
Drivers of Corporate Demand
The surge is fueled by corporate net-zero commitments, with demand for durable CDR projected to reach 40–200 million tonnes of CO₂ equivalent (MtCO₂e) annually by 2030. Tech giants like Microsoft, Google, and Stripe are leading, with Microsoft purchasing 129,000 tonnes in Q1 2024 alone—a 30% increase over its 2023 total. Google’s partnership with Varaha in India represents the largest biochar offtake to date.
Buyers favor biochar for its affordability (average $177 per tonne in 2025, up from $131 in 2023) and co-benefits. Long-term offtake agreements provide cost savings of up to 31% compared to spot purchases, offering price stability amid rising costs. Prices rose 8% from Q2 to Q3 2025, with operational projects commanding 10–20% premiums. Updated Science Based Targets initiative (SBTi) guidelines and interim CDR targets are intensifying competition.
Supply Constraints and Price Volatility Warnings
Despite demand, supply is 23% below forecasts due to project delays, financing hurdles, and construction setbacks. The market is projected to grow 30-fold by 2028, but 88% of this expansion comes from low-quality projects, raising concerns about integrity and greenwashing. High-quality credits average $220 per tonne—30% more than failed ones—yet scarcity is driving premiums.
Experts warn that buyers delaying purchases risk higher prices and limited options, as credits once available until year-end are now gone by September. “High-quality projects are in high demand and commanding significant premiums,” notes Sandy Doran of Supercritical. MSCI forecasts a 20-fold demand increase over the next decade, potentially leading to short-term price compression before a rebound by 2035.
Implications and Future Outlook
This sell-out signals biochar’s maturation as a cornerstone of the “new renewable revolution,” akin to solar and wind two decades ago. Offtake agreements are key to scaling, reducing risks, and achieving gigatonne-level CDR. However, the supply-demand gap (33 MtCO₂e supply vs. 40–200 MtCO₂e demand by 2030) could exacerbate volatility.
For companies, acting now via vetted marketplaces like Supercritical ensures access to reliable credits. As the VCM evolves, transparency and quality will be paramount to avoid past pitfalls and drive meaningful climate impact.
References
- Biochar Market Heats Up As 2025 Credits Nearly Sold Out, Supercritical Warns – https://carbonherald.com/biochar-market-heats-up-as-2025-credits-nearly-sold-out-supercritical-warns/ (Published: Sep 4, 2025)
- The Biochar Gold Rush: Why Companies Are Scrambling to Lock in Carbon Credits – https://carboncredits.com/the-biochar-gold-rush-why-companies-are-scrambling-to-lock-in-carbon-credits/ (Published: Mar 6, 2025)
- Are Biochar Carbon Credits Reliable? What to Look For in 2025 – https://www.sylvera.com/blog/biochar-carbon-credits (Published: Jul 30, 2025)
- CDR Monthly Recap – August 2025 – https://www.cdr.fyi/blog/cdr-monthly-recap-august-2025 (Published: Sep 4, 2025)
- The new renewable revolution: Why carbon dioxide removal will transform the carbon market – https://www.weforum.org/stories/2025/04/carbon-dioxide-removal-carbon-credits/ (Published: Apr 10, 2025)
- Supercritical report finds new biochar supply set to grow 30x in the next four years, but 88% of growth is from low-quality projects – https://www.globenewswire.com/news-release/2024/05/23/2887041/0/en/Supercritical-report-finds-new-biochar-supply-set-to-grow-30x-in-the-next-four-years-but-88-of-growth-is-from-low-quality-projects.html (Published: May 23, 2024)
- The Biochar Gold Rush: Why Companies Are Scrambling to Lock in Carbon Credits – https://carboncredits.com/the-biochar-gold-rush-why-companies-are-scrambling-to-lock-in-carbon-credits/ (Published: Mar 6, 2025) [Note: Duplicate for emphasis on key data]
- Biochar — buy carbon removal with Supercritical – https://gosupercritical.com/carbon-removal/biochar (Accessed: Sep 8, 2025)