Supercritical report finds new biochar supply set to grow 30x in the next four years, but 88% of growth is from low-quality projects
2024年5月23日 - 5:00PM
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).
Photos accompanying this announcement are available
at:https://www.globenewswire.com/NewsRoom/AttachmentNg/1ef87296-4348-4e34-b66a-38b0efe2454ahttps://www.globenewswire.com/NewsRoom/AttachmentNg/dad955e9-fd74-4abf-adf9-0ad8cbaee1d7https://www.globenewswire.com/NewsRoom/AttachmentNg/5b593c80-8fbe-41c2-aab6-785534c5a177https://www.globenewswire.com/NewsRoom/AttachmentNg/a68de74a-168c-4775-ad57-bd7701c66fea
Contact data
Kieran Kilbride-Singh
Supercritical
kieran@gosupercritical.com