In a significant development for 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, Sitos Group, a company focused on transforming 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 into biochar for soil health, has successfully navigated the complex regulatory landscape to secure crucial air permits for its 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 process. This achievement not only marks a major milestone for Sitos Group but also sets a precedent for the broader biochar sector, particularly concerning the classification of pyrolysis technology by environmental regulatory bodies.

Sitos Group, co-founded by Mayo Ryan and Steve McIntyre in early 2022, emphasizes its agricultural roots, with a primary focus on soil health and plant nutrition. Ryan has been involved in biochar production since 2017, while McIntyre has perfected its use in wine grapes over the past decade. The company’s mission is driven by a strong belief in biochar’s potential, reinforced by research and the IPCC’s negative emissions report. Sitos Group aims to repurpose biomass into a valuable soil amendmentA soil amendment is any material added to the soil to enhance its physical or chemical properties, improving its suitability for plant growth. Biochar is considered a soil amendment as it can improve soil structure, water retention, nutrient availability, and microbial activity.   More, with a broader goal of scaling the biochar industry through collaboration rather than competition, especially in regions like California, which targets carbon neutrality by 2045.

The journey to securing permits was not without its hurdles. Sitos Group initially faced significant knowledge gaps  with the Monterey Bay Air Resources District (MBARD), which, lacking an existing category for pyrolysis, misclassified the company’s process as incineration. This misclassification subjected Sitos Group’s pilot plant at Regen Monterey to stringent and costly regulations under the Clean Air Act, including annual emissions tests that would impose a substantial financial burden on a nascent industry. A single 4-day emissions test, for example, cost over $100,000, plus an additional $40,000 for necessary equipment and scaffolding.

A pivotal turning point came with the advocacy efforts of the US Biochar Coalition (USBC), formed in late 2023. Mayo Ryan, currently the board chair of the USBC, played a crucial role in engaging with and educating the Environmental Protection Agency (EPA). Through persistent dialogue, including in-person meetings and follow-up calls in 2024, the USBC, alongside other organizations like the Sonoma Ecology Center, successfully educated the EPA on the distinct nature of pyrolysis. In September 2024, these efforts culminated in new national EPA guidelines clarifying that pyrolysis is neither incineration nor combustion. This reclassification is a monumental victory for the industry, as it exempts pyrolysis from onerous Clean Air Act restrictions and expensive emissions testing, making the technology more economically viable for small and large companies alike.

The EPA’s updated guidelines provided a new regulatory pathway, simplifying the permitting process for biochar producers using pyrolysis with clean cellulosic biomass. Following this national clarification, Sitos Group reapplied for an applicability determination with EPA Region 9, which, combined with the new guidelines, led to approval. Jessica Bronner, a key partner at Sitos Group, emphasized that the challenge was not to “convince” MBARD but to “educate” them about their unique technology, given the absence of an existing regulatory category. The process involved extensive detailed explanations of their single-chamber pyrolysis design, differentiating it from two-chamber designs that include a thermal oxidizer and explaining how volatile organic compounds are combusted within their single chamber, resulting in a virtually emissions-free operation. This education included site visits and thorough explanations of 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 sources and technology.

Local air districts, such as MBARD, enforce EPA guidelines but can also impose additional, stricter regulations. Monterey proved to be one of the most stringent, making Sitos Group’s approval there a significant precedent. Their success with MBARD is expected to facilitate easier permitting with other districts, such as the San Joaquin Valley Air Pollution Control District, which is more familiar with biochar.

Historically, most biochar on the West Coast was produced from gasifiers at lumber mills, yielding a less customizable product with lower conversion rates. Sitos Group, however, opted for slow pyrolysis technology, which allows for customization of biochar for specific soil types and needs and achieves higher conversion rates from feedstock to biochar, typically in the 30-32% range. While gasifiers produce higher volumes and prioritize power generation, slow pyrolysis prioritizes customization and conversion efficiency.

Sitos Group operates as a multi-faceted entity, functioning as a project developer, technology provider, biochar producer, and carbon credit provider. The company holds exclusive rights to sell, distribute, and co-manufacture its improved pyrolysis equipment, which is being deployed in its first commercial plant at Treehouse California Almonds. This facility will serve as a demonstration center for their pyrolysis equipment and a live pyrolysis operator training center in partnership with the Butte County Office of Education. Sitos Group plans to replicate this model throughout California’s agricultural valleys, repurposing biomass from almond huller shellers, pistachio plants, wastewater treatment plants, and landfills. The company’s revenue streams include the sale of biochar, carbon dioxide removal credits, and, to a lesser extent, renewable energy, with potential for tipping fees at landfills. A long-term goal is to replace synthetic fertilizers with a blend of biochar and compost for their largest shareholder, Nuveen  Natural Capital, aiming to create carbon-negative agricultural products.

Implications and Recommendations for Other Biochar Producers

The experience of Sitos Group offers invaluable lessons and a clear roadmap for other biochar producers.

• Proactive Regulatory Engagement: Companies should prioritize educating regulators before applying for permits. Sitos Group’s initial approach, operating a unit before fully navigating the permitting process, led to delays and increased costs. Proactive engagement can prevent misclassification and streamline the approval process.
• Clear Technological Explanation: Be prepared to thoroughly explain your pyrolysis technology, particularly differentiating it from incineration and combustion. Highlighting aspects like single-chamber designs, oxygen-limited environments, and internal gas combustion is crucial for regulators to understand the process.
• Feedstock Transparency and Sourcing: Clearly define and strategically manage feedstock sources. Regulators may view the same biomass differently based on its origin (e.g., forest waste versus general public waste). Ensuring feedstocks meet “clean cellulosic biomass” criteria is vital for exemption from stricter regulations.
• Leverage Industry Coalitions: Active participation in and collaboration with organizations like the US Biochar Coalition (USBC) and US Biochar Initiative (USBI) are essential. These coalitions play a critical role in advocating for policy changes, educating regulatory bodies, and providing a unified voice for the industry.
• Utilize Environmental Consultants: Engaging experienced environmental consultants is highly advisable, especially for startups lacking direct experience with air quality boards. Consultants can bridge the gap in scientific and regulatory understanding, guiding companies through complex discussions and compliance requirements.
• Embrace Collaboration: The biochar industry is still in its nascent stages and requires a collaborative spirit. Sharing lessons learned and assisting other companies in navigating regulatory hurdles will accelerate industry-wide growth. This ethos of “it’s an ‘also and’ industry” rather than an “either or” competition is key to collective success.
• “Stick With It”: The industry is evolving rapidly, and biochar is currently recognized as the most efficient and shovel-ready means of removing atmospheric carbon. Persistence in navigating challenges and contributing to the industry’s growth is crucial for meeting climate goals.

Sitos Group’s success in obtaining its air permit highlights a turning point for the biochar industry. By demonstrating that pyrolysis is distinct from incineration and can be a clean, beneficial process, they have not only secured their own future but have also paved a clearer, less onerous path for other biochar companies looking to scale and contribute to carbon neutrality goals.