SWOT Analysis for Building Biochar Markets

in the PNW

Kelpie Wilson Wilson Biochar Associates kelpiew@gmail.com

Biochar is baked biomass that you can add to soil*

Biomass to Biochar

Lignin

Cellulose

Molecular scale

Cellular scale

Carbon Atom

Biochar Has Benefits

How do you monetize them?

First Rule of Marketing

Sell the Solution, Not the Product (eg – if I buy a drill it is not because I want a drill; it is because I want to make a hole in something.)

Problems need Solutions Problems are Opportunities

What problems can biochar solve?

SWOT can refine the analysis and dig into the details

Start by sorting items in the SWOT categories

Strengths Weaknesses

Opportunities Threats

• My lists are on the next several slides, but they are just a start.

• As a group we can identify many more items at many levels.

Biochar Systems Impact Nature, People, Economies

Environment

Resources

Technology

People

Capital

Government

PLANET POLICY

My lists are ordered in a “Planet-to-Policy” order. Strong projects will satisfy needs in multiple sectors.

Strengths – Internal Origin

1. Biochar has soil, ecosystem and climate benefits

2. Biochar can be made economically on forest landings with mobile equipment at various scales, saving biomass handling and transport

3. Biochar production can be integrated with biomass heating systems

4. Biochar production can produce liquid fuel co-product

5. Biochar is a hopeful solution to a grim, hopeless problem – climate change

6. Biochar provides synergistic solutions to problems that concern policy makers – food security, energy security, climate, sustainability

Strength - Biochar can be made on forest landings with mobile kilns

Carbon Cultures Showcase Event in Kerby, OR, Nov 6-9, 2012

Weakness – Internal Origin

1. Lack of scientific knowledge about biochar mechanisms in soil

2. Potential to produce toxicants in biochar that will end up in soils

3. Lack of affordable and efficient production technologies; energy capture is difficult and adds to technology cost

4. Difficult to make consistent biochar product with many existing technologies; quality testing is costly; QA methodologies lacking

5. Lack of knowledge about biochar applications and biochar-to-soil matching inhibits market development

6. Biochar is a complex topic that is hard to explain for purposes of marketing and building public support for policy

Weakness - Lack of knowledge about biochar characteristics matched to applications

Opportunities – External Origin 1. NW is a “Carbon Stronghold” with abundant forests and rainfall resulting

in above average potential as a carbon sink

2. NW has existing and potential markets for ecosystem services (fire protection, watersheds, oceans, biodiversity, sustainable agriculture, zero waste objectives)

3. NW vibrant agriculture industries are potential strong biochar markets

4. NW has existing markets for biomass heat

5. NW has workforce training needs to keep fire crews working and in shape – biochar production in the woods can meet those needs

6. NW has an educated public that values sustainability and ecosystem services and a positive (and improving) policy environment for climate, sustainability and ecosystem services

Opportunity - existing NW ecosystem services markets

Fuel load reduction pile and burn projects cost - $2000/acre

Threats – External Origin

1. Potential competition with biofuels for biomass resource – especially over time

2. Projects may proceed without adequate biochar testing and/or life cycle analysis and result in harm to ecosystems

3. Opposition may develop based on public perceptions that biochar could harm ecosystems

4. Biochar weaknesses could lead to over-regulation, stifling commercialization

Threat - Competition for biomass

Imported wood fuels Drax power plant in England

SWOT analysis helps develop marketing action plans

Match Strengths to Opportunities (to sell the solution)

Convert Threats to Opportunities (more solutions to provide)

Analysis: Match Strengths to Opportunities

Strength Opportunity

*Biochar has soil, ecosystem and climate benefits

*NW agriculture and ecosystem services industries are potential biochar markets

Biochar production can be integrated with biomass heating systems

NW has existing markets for biomass heat

Biochar is a hopeful solution to a grim, hopeless problem – climate change

NW has an educated public that values climate, sustainability and ecosystem services

Analysis: Convert Threats to Opportunities

Threat New Opportunity

Potential competition with biofuels for biomass resource – especially over time

Encourage biochar projects that produce useable energy

Projects may proceed without adequate biochar testing and/or life cycle analysis and result in harm to ecosystems

Prevent by establishing strong sustainability and safety standards and build a transparent, respected industry

Action Plans

After matching Strengths to Opportunities, look for specific opportunities in various sectors: commercial, institutional, government. WHO wants to make or use biochar?

What NEEDS to be put in place - partnerships, resources, technology, research – in order to make it happen?

What are the immediate ACTION steps needed to initiate the plan?

Action Plan for Biochar and Forests

WHO – US Forest Service, BLM, state forests, fire protection agencies all have mandates to reduce fuel loading and to train a workforce to manage and control fire. Funded projects for forest health and watershed restoration may be able to use biochar.

NEEDS – biochar conversion technology that works in the woods to avoid transport of low-value raw material; verification of biochar benefits to restoration and reforestation.

ACTION STEPS – develop pilot projects funded with public money to prove technology and economics. Public education can help promote markets for biochar product, including use for on-site restoration.

Action Plan for Biochar and Institutional Heating

WHO – Universities, municipalities, government buildings, hospitals and schools are converting to biomass heat. They also manage playing fields, parks or landscaping that can use biochar to conserve water and chemicals. And they have an interest in climate-friendly development.

NEEDS – Reliable proven technology; biochar use guidelines for landscaping; funding; public education.

ACTION STEPS – Build coalitions of support. Produce feasibility studies to educate decision makers and support project developer bids.

Action Plan for Biochar and Composting

WHO – Large compost producers working with municipalities cannot use all the available woody biomass, have odor control issues and would like to speed up composting.

NEEDS – Pilot projects that help large composters acquire biochar production technology to make and use biochar in their operations, or source biochar from other producers.

ACTION STEPS – outreach to find partners; project planning and budgeting; financing; education of decision makers and public.

Action Plan for Biochar and Biologicals

WHO – small producers selling “artisanal” products to farmers and gardeners such as worm castings, bokashi, mycorrhizae and compost tea. Biochar adds value to biologicals, improving activity and shelf life.

NEEDS – workshops to share production knowledge; networks to share information about what works in soils; coops to help with marketing and distribution.

ACTION STEPS – interview practitioners to compile knowledge; verify and systematize techniques with help from researchers; organize cooperatives and networks with partners like Oregon Tilth.

Longer-Term Opportunities

California’s cap & trade – will it move North? If yes, then we can manage the NW Carbon Stronghold with biochar to maximize carbon sequestration in our forests and fields.

Home heating with biochar stoves – Pellets are key.

Broad scale agriculture – this requires definitive use guidelines for each crop and soil type from research university extension services, and consistent, certified biochar products. It will take time.

Liquid fuels – technology and bio-oil refining will take time and investment dollars to perfect.

And there’s more…

Biochar for stormwater treatment and land remediation – top of the agenda for immediate action plans

Biochar in animal husbandry – feed supplement, odor control – needs research

Biochar in pastures – for long term soil carbon building

Biochar in sewage treatment – look to Germany for examples

Biochar to mitigate ocean acidification – needs basic research

Biochar as high tech material for electrodes, capacitors, etc – engage NW high tech industry

References useful for assessing biochar risks, unknowns and knowledge gaps

International Biochar Initiative. “Standardized Product Definition and Product Testing Guidelines for Biochar That Is Used in Soil.” IBI (2012).

Wilson, Kelpie, et al, "Implications and Risks of Potential Dioxin Presence in Biochar," International Biochar Initiative White Paper, (2012).

Spokas, Kurt A., et al. "Biochar: A synthesis of its agronomic impact beyond carbon sequestration." Journal of Environmental Quality 41.4 (2012): 973-989.

Downie, Adriana, et al. "Biochar as a Geoengineering Climate Solution: Hazard Identification and Risk Management." Critical Reviews in Environmental Science and Technology 42.3 (2012): 225-250.

Conclusion

SWOT can be useful for analyzing the biochar market opportunities and avoiding mistakes

Analysis must lead to Action – that is why we are here today

Thanks and have a productive day!

Wilson Biochar Associates Kelpie Wilson www.wilsonbiochar.com kelpiew@gmail.com Phone: 541-592-3083 Mobile: 541-218-9890