Biochar Carbon Removal with energy co-production – Present and future business models

[Geoengineering News]

https://www.sciencedirect.com/science/article/abs/pii/S0961953426004216

Authors: Monika Orlowski, Hannes Bluhm, Bernd Hirschl

27 April 2026

https://doi.org/10.1016/j.biombioe.2026.109346

Highlights

•Development of first taxonomy of pyrolysis BM elements in DACH region.

•Four archetypes: Biomass Utilizer, Energy User, Energy supplier, Specialized Operator.

•Backcasting workshop reveals BM elements for 2045 carbon-neutral energy scenarios.

•Future pathways include heat integration, oil markets, power flexibility, hydrogen.

•Co-products and regulatory incentives are key for scaling pyrolysis in energy systems.

Abstract

Carbon Dioxide Removal (CDR) is essential for achieving climate neutrality, and Biochar Carbon Removal through slow pyrolysis is among the most mature options available. Although the number of pyrolysis plants in Europe is growing, research on their business models (BMs) remains limited. In this context, this paper explores three questions: How are current pyrolysis BMs with energy co-production configured? Which BM archetypes can be identified? And what future BM pathways appear promising? Our analysis draws on desktop research covering 39 plants in Germany, Austria, and Switzerland, 11 interviews with operators and manufacturers, and an expert workshop using a backcasting approach. From these data, we develop a taxonomy of BM elements and cluster them into four archetypes: integrated biomass utilizers, energy users, energy suppliers, and specialized operators. Each type differs in scale, product focus, and integration depth. Looking ahead, stakeholders envision expanded roles for pyrolysis in municipal heat planning, oil markets, flexible electricity generation, and hydrogen production. Heat provision appears most advanced, while bio-oil and hydrogen production, and flexibility provision require further technological progress and supportive policy frameworks. The findings underline the diversity of current BMs and highlight the importance of co-products and regulatory incentives for scaling pyrolysis as part of both the energy transition and the implementation of CDR strategies.

Source: ScienceDirect