Carbon Negative Heat and Power with Biochar Production : An Economic Analysis of a Combined Pyrolysis and CHP plant

Abstract: On the fourth of November 2016, The Paris Agreement entered into force, stating that nations worldwide should pursue efforts to limit the global temperature increase to 1,5 °C. Since then, the Intergovernmental Panel on Climate Change has specified that carbon dioxide removal, such as biochar sequestration, is necessary to achieve this goal. Biochar is a solid and porous material, rich in carbon, produced when biomass undergoes a process called pyrolysis and can, if buried in soil, sequester carbon for hundreds or even thousands of years while at the same time acting as a soil amendment. When biomass is pyrolyzed to produce biochar, a pyrolysis gas is also produced, which can be used to generate both heat and electricity. This thesis investigates if constructing and operating a plant, called a combined pyrolysis and CHP plant, which combines biochar production with heat and electricity generation, could be economically feasible and thus be an effective method for carbon dioxide removal. The findings show that constructing and operating a combined pyrolysis and CHP plant can be economically feasible. However, the economic feasibility is greatly affected by the price of biochar as a soil amendment product. The biochar market is also an undeveloped market, making price estimates of biochar far from accurate. Another factor that could significantly affect the economic feasibility of the plant is the fraction of carbon in biochar, which can be accounted for as sequestered. A higher fraction means that significantly more governmental support can be given to provide financing of the plant as well as potential revenue from carbon credits could increase. The capital cost of constructing the plant is also a factor with high uncertainty, which has a substantial effect on the economic feasibility. From this thesis, it is concluded that more research regarding the biochar market, as well as the capital costs of constructing the plant, is needed. More research could further ascertain whether or not the plant could be economically feasible and thus, an effective method for carbon dioxide removal.