Return on Investment from Biochar Application

Abstract

Core Ideas Biochar application costs range between $2900 and $17,900/ac depending on spreader volume and total mass biochar applied. Return on investment ranges from $427 to $2590/ac/year for 10 years. Cost of sequestered CO2 is $18 to $33/ton CO2/year for 10 years depending on efficiency. Cost effective application of biochar is to pay by mass using the largest spreader available. Current literature has yet to fully address the cost of biochar application or the return on investment to the grower. The objectives were to identify possible on‐farm spinner spreader equipment, spreader capacity, application expenses, and rate of return needed for growers to broadcast biochar economically. Biochar from red oak (Quercus rubra) processed using fast pyrolysis with a density of 36.5 lb/ft was used in all scenarios. Spinner spreader volumes ranged from 50 to 255 ft3 and a manure spreader with a volume of 720 ft3. Crop response to increased biochar was not consistent, either positive or negative, thus, the return on investment may only be dependent on government, private, or commercial incentives. Possible application cost techniques investigated were by density ($/ft3), by the load ($/load), or by mass ($/ton). The actual cost to purchase and transport biochar to the field location was $290/ton. The estimated total number of loads required to apply biochar ranged from 1 to 66 loads depending on spreader volume and biochar rate. Application expenses ranged from $2900 to $17,926/ac. The most economical and efficient application technique would be to pay by “mass” using the largest volume spreader. Across all spreader volumes and biochar rates, the required payments to achieve a 7% return on investment ranged from $427 to $2589/ac/year for 10 year. This equates to $18 to $33/ton/ac/year of sequestered CO2 over 10 year at 80 and 60% carbon to CO2 efficiency, respectively.