Abstract
Biochar is a co-product of advanced biofuels production from feedstocks including food, agricultural, wood wastes, or dedicated energy crops. Markets for soil amendments using biochar are emerging, but little is known about consumer preferences and willingness to pay (WTP) for these products or the depth of the products’ market potential for this product. This research provides WTP estimates for potting mix amended with 25% biochar, conditioned on consumer demographics and attitudes about product information labeling. Data were collected with an online survey of 577 Tennessee home gardeners. WTP was elicited through a referendum contingent valuation. Consumer WTP for an 8.81 L bag of 25% biochar potting mix is $8.52; a premium of $3.53 over conventional potting mix. Demographics and attitudes toward biofuels and the environment influence WTP. Biochar amounts demanded are projected for the study area’s potential market. Optimal prices, profits, and market shares are estimated across different marginal costs of producing biochar potting mix.
Highlights
Development of biochar co-product markets could enhance the overall profitability of lignocellulosic-to-energy biofuel conversion facilities
Finding relatively high-value biochar market applications with sufficient magnitudes of demand could help boost the overall profitability of a biofuel-biochar co-product facility
The results from this study suggest that consumers would pay a premium for a biochar-blended potting mix compared with conventional
Summary
Biochar as a Co-Product of Biofuels and a Soil Amendment. Biochar is a charcoal-like material produced by the thermal decomposition of organic material in an oxygen-limited environment at relatively low temperatures. Biochar can be produced from a variety of feedstocks, including wood wastes, agricultural wastes (e.g., wheat straw and rice hulls), dedicated crops (e.g., switchgrass and miscanthus), and food wastes. Biochar can be produced when pyrolysis is used to convert lignocellulose into bio-oil, an advanced biofuel precursor [1]. 15 and 50 percent of the co-product produced from pyrolysis is biochar [2]. The amount of biochar co-product [3] and breakeven prices [4] has been estimated for model pyrolysis facilities, but research that evaluates the market potential of biocharbased products is needed. Developing viable markets for biochar could improve the overall profitability of advanced biofuels production. Lack of high-value co-products is a leading barrier to industry-scale production of biofuels [5] and contributes to the failure of advanced biofuel production to keep pace with targets established under the Renewable
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