LONDON, May 23, 2024 (GLOBE NEWSWIRE) -- Supercritical, the leading carbon removal marketplace, today published a critical report, “Boom or Bust? 2024 Biochar Market Outlook.” Leveraging Supercritical’s biochar marketplace data, which covers 80% of the market, this report shows that biochar is rapidly emerging as the most accessible permanent carbon removal method, carving a path toward gigatonne scale with 30x growth in supply coming online in the next few years. However, 88% of the new 12.5mt biochar capacity is low-quality that fails Supercritical’s stringent vetting protocol.
"The influx of low-quality biochar is alarming," said Michelle You, CEO of Supercritical. “We can’t allow biochar to have the same reputational damage that has ravaged the avoidance market and REDD+ credits: initial signs of demand that led to rapid development of low-quality projects, creating a flood of subpar credits with little climate impact. This reputational risk and the lack of a consistent quality on the market make it extremely difficult for buyers to act. It’s why the biochar projects we list on our marketplace must pass our stringent vetting protocol across climate science, environmental factors, delivery risk, and social impact.”
High-quality projects continue to grow, albeit at a slower rate of only 9x rise in capacity. Demand for high-quality biochar remains robust, reflected in the premium prices that Supercritical’s vetted biochar supply commands. High-quality credits average $220 per tonne, 30% higher than the $153/t for credits that have failed Supercritical’s vetting protocol. Yet, the availability of vetted, high-quality biochar is becoming scarce: 41% of credits from vetted projects for 2024 and 2025 have sold in advance, compared to only 13% for failed projects.
“It’s clear that buyers are rightly worried about the quality and availability of carbon removal credits,” said Toby Darbyshire, COO of Supercritical. “As the supply of high-quality credits diminishes and scarcity looms, savvy buyers are opting for long-term offtake agreements to secure future supply.” These arrangements, often made by purchasing in bulk and paying upfront, offer discounts of up to 37% compared to spot prices.
“Sustained corporate commitment to long-term carbon removal is vital, yet buyers face significant barriers to access including a lack of transparent market information on pricing and availability, low trust in credits, and simple, secure transactions,” said Michelle You. “Buyer demand will only grow if we make it easier and safer to make your first purchase. That is what Supercritical is laser focused on, and this report highlights that it is more critical than ever.”
Download the full report: https://climate.gosupercritical.com/biochar-report
Request access to the Supercritical marketplace: https://climate.gosupercritical.com/early-access/
ABOUT SUPERCRITICAL: Supercritical (https://gosupercritical.com) is the gateway to the carbon removal market. One-third of corporate buyers including The Economist, Virgin Atlantic, and Rothschild & Co use Supercritical’s marketplace to navigate the market, build portfolios of high-quality vetted projects, and securely transact across spot purchases and offtake agreements. Supercritical is the marketplace of choice for visionary companies with ambitious climate goals that need to be met today, not decades from now.
In September 2023 Supercritical raised a $13m Series A to scale the carbon removal market to gigatonne capacity. It is backed by Lightspeed Venture Partners, GreenCode Ventures, and MMC Ventures. It has been previously backed by LocalGlobe and angel investors including Peter Reinhardt (Twilio Segment and Charm Industrial), Yancey Strickler (Kickstarter), Alice Bentinck (Entrepreneur First), Gustaf Alströmer (Y Combinator) and Evelyn Bourke (Bupa).
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