The biocharBiochar is a carbon-rich material created from biomass decomposition in low-oxygen conditions. It has important applications in environmental remediation, soil improvement, agriculture, carbon sequestration, energy storage, and sustainable materials, promoting efficiency and reducing waste in various contexts while addressing climate change challenges. More industry is a sector increasingly recognized for its dual benefits of carbon sequestration and soil enhancement, NetZero, a company with a unique approach to biochar production in the tropics, has announced its new Gen2 technology. A recent briefing between NetZero’s co-founder, Olivier Reinaud, and the team at Biochar Today provided an insightful look into this advancement and its potential implications for the industry. Here’s a comprehensive breakdown of Gen2 and the company’s evolving business model.

NetZero, founded in January 2021, distinguishes itself by focusing exclusively on tropical regions and utilizing agricultural crop residues as feedstockFeedstock refers to the raw organic material used to produce biochar. This can include a wide range of materials, such as wood chips, agricultural residues, and animal manure. More. This family-run company, with a multi-generational history in biochar stemming from Olivier’s grandfather, Guy Reinaud (1940-2023), operates with a strong commitment to a circular economy. Their model ensures that the same farmers providing the biomassBiomass is a complex biological organic or non-organic solid product derived from living or recently living organism and available naturally. Various types of wastes such as animal manure, waste paper, sludge and many industrial wastes are also treated as biomass because like natural biomass these More are also the primary beneficiaries of the biochar produced, fostering long-term partnerships and local economic benefits. This localized and integrated approach sets NetZero apart from many players in the biochar space.

Announcing the Gen2 Modular PyrolysisPyrolysis is a thermochemical process that converts waste biomass into bio-char, bio-oil, and pyro-gas. It offers significant advantages in waste valorization, turning low-value materials into economically valuable resources. Its versatility allows for tailored products based on operational conditions, presenting itself as a cost-effective and efficient More System

During the briefing, Reinaud unveiled the core features of their Gen2 technology, marking a substantial leap forward from their initial Gen0 system deployed in Cameroon and Gen1 deployed in Brazil. The most notable improvement is the doubled throughput capacity, reaching approximately two tons of biomass per hour per reactor. Given that NetZero typically deploys sites with at least two reactors, the minimum processing capacity per site now stands at an impressive four tons per hour. This increase in efficiency directly addresses the critical need for scalability in the biochar industry to achieve meaningful climate impact.

Beyond just increased capacity, modularity is a key design principle of Gen2. This modularity extends beyond simply adding more reactors to a site. It encompasses a range of pre-processing modules that can be integrated upstream of the reactor to handle diverse types of agricultural residues. These modules include options for drying, crushing, and even pelletizing biomass and biochar, allowing NetZero to tailor their systems to the specific characteristics of locally available feedstocks. This flexibility is crucial when working with the inherent variability of crop residues compared to more homogeneous wood-based feedstocks. Furthermore, even the buildings housing the Gen2 systems are designed with modularity in mind, streamlining deployment and potential expansion.

The Gen2 technology operates on a fully continuous process, a significant advantage over batch systems in terms of efficiency and consistent output. The comany also claims extremely high equipment availability rates, above 90%, which is very difficult to achieve in hot processes. While Reinaud remained tight-lipped about the specific pyrolysis technology employed, he emphasized that it is distinct from many existing technologies in the market, representing an evolution rather than a complete reinvention of pyrolysis. This continuous flow, coupled with NetZero’s internally developed hardware and software integration, allows for sophisticated automated process control. This automation is vital for maintaining consistent biochar quality and optimizing syngasSyngas, or synthesis gas, is a fuel gas mixture consisting primarily of hydrogen and carbon monoxide. It is produced during gasification and can be used as a fuel source or as a feedstock for producing other chemicals and fuels.   More production across varying biomass inputs. As Reinaud pointed out, manual systems often struggle with the inherent variability of crop residues, leading to inconsistent product quality.

A crucial aspect of NetZero’s philosophy is the robustness of their technology, specifically designed for the demanding conditions of tropical environments. Reinaud highlighted the need for systems that are not only highly automated for precise control but also relatively simple to maintain using local resources. This contrasts with more complex technologies that might require specialized international expertise for upkeep, a significant barrier to widespread adoption in developing regions.

Business Model

NetZero’s business model is as innovative as its technology. Unlike some biochar producers who focus solely on carbon credits or simply selling biochar, NetZero has adopted a fully integrated approach. They develop the technology, implement and operate the projects, distribute the biochar locally, and manage the entire Measurement, Reporting, and Verification (MRV) process for carbon credits, including third-party certification and commercialization. This end-to-end control allows them to ensure quality at every stage and maintain traceability of the biochar.

The company operates on a circular model where local farmers provide the agricultural waste biomass – for which they are not paid – and subsequently purchase the resulting biochar. Reinaud emphasized that the significant yield increases observed (around 25% on average) for quick payback on the cost of the biochar, creating a compelling economic incentive for farmers to participate. This model contrasts with approaches where biochar is given away, as NetZero believes a profitable business model is essential for long-term scalability. Selling biochar helps increase traceability (a recurring criticism for many biochar projects in the global south) and helps avoid product repurposing for unintended uses

In addition to their own project development and operation, NetZero is also rolling out a franchise or licensing model. This allows them to expand their reach more rapidly by partnering with other organizations who can leverage NetZero’s technology and operational expertise. This model includes not just the equipment but also deep, embedded support, standardized operating procedures, and adherence to high ESG standards, such as the IFC Performance Standards.

They’ve been doing a very extensive work on biomass diversification, working on a very detailed mapping and characterization of numerous biomasses and their resulting biochar to prepare our scale up. Having a highly informed, biomass-specific approach is usually overlooked by the biochar industry but is key to properly control biochar quality.

The briefing also touched upon the financial viability of NetZero’s model. While specific financial details were not disclosed, Reinaud confirmed that their projects are profitable, with a payback period of a few years. He stressed that profitability is a fundamental requirement for the biochar industry to scale to the gigaton level needed to significantly impact climate change. The revenue streams for NetZero include the sale of both biochar and carbon credits for their own operations, and technology and support fees for their licensed projects.

Social Impacts

The most significant impact is the agronomic benefit for farmers, leading to increased yields and improved livelihoods. Furthermore, NetZero prioritizes local job creation, hiring and training individuals from the communities where they operate, often providing skilled industrial jobs in areas with limited economic opportunities.

NetZero’s Gen2 technology and integrated business model represent a significant step forward for the biochar industry. The focus on modularity, continuous processing, and robust design tailored for tropical conditions directly addresses key challenges in scaling biochar production using diverse agricultural residues. The circular economy approach, where farmers are both suppliers and beneficiaries, fosters local buy-in and long-term sustainability. The introduction of a franchise model further enhances NetZero’s potential for rapid expansion.

While the specifics of the pyrolysis technology remain undisclosed, the emphasis on automated process control and the ability to handle multiple biomass types with consistent output quality are compelling. The company’s commitment to profitability and its success in attracting high-profile investors and partners like Nespresso, Stellantis, and L’Oreal underscore the growing recognition of biochar’s potential and NetZero’s innovative approach.

NetZero’s announcement of its Gen2 technology marks an exciting development in the biochar landscape. By combining technological advancements with a well-defined and socially conscious business model, NetZero is well-positioned to play a significant role in scaling biochar production and realizing its potential for both carbon sequestration and agricultural enhancement, particularly in the crucial tropical regions. The industry will be watching closely as NetZero deploys its Gen2 technology and further expands its reach through its innovative franchise model.