As this dynamic 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 landscape evolves, companies that combine technological innovation with strategic market approaches are poised for significant impact. One such entity, Airex Energy, a French Canadian firm established in 2014, is demonstrating a compelling model for scaling biochar production and application, shifting from a nascent industry to a more mature and reliable sector.

Initially rooted in residual 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 torrefaction for biocoal production, Airex Energy’s journey reflects the industry’s adaptive nature. Their proprietary technology, distinguished by its circular process and dust-free product, laid the groundwork for a natural evolution into biochar. This transition, notably spurred by interest from Suez, a French company, in 2021-2022, highlights a critical industry trend: the recognition of established  biomass conversion technologies as foundational for high-quality biochar. Michel Gagnon, CEO of Airex Energy, underscored this adaptability, stating, “We started with biocoal, and now we also produce biochar and biocarbon. The core equipment is the same, but we adjust the conditions to create different levels of carbon content.” This flexibility in their patented DryFX™ and CarbonFX™ technologies allows for various carbonization levels and 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 types, including forest and agricultural residues, positioning Airex Energy as a versatile “decarbonization solution provider.”

The Joint Venture Model: De-risking and Scaling Production

A cornerstone of Airex Energy’s strategy is its joint venture model. Rather than solely manufacturing and selling equipment, Airex Energy prefers to co-invest in projects, providing technology, technical support, and expertise in commercialization. The Carbonity project in Port-Cartier, Quebec, serves as the flagship example of this approach. Inaugurated in May 2025, Carbonity is a joint venture equally owned by Airex Energy, Groupe Rémabec (a pillar of the Quebec forestry industry), and SUEZ (a global leader in circular solutions for water and waste). Co-located with a sawmill, the facility primarily utilizes approximately 58,000 tonnes of forestry residues annually from Groupe Rémabec’s operations, ensuring a secured, consistent and localized feedstock supply. This collaborative framework is designed to mitigate investment risks, especially given the complexities of regulations and processes in the biochar space. Lylia Khennache (Vice-President Climate Solutions at Airex Energy) highlighted the practical benefits: “This model allows us to leverage the expertise of strong partners, which is crucial in a developing market like biochar.” In this model, the joint venture, such as Carbonity, produces the biochar, while Airex Energy provides crucial technical and commercial services. The project received significant financial support from both the Quebec and Canadian governments, underscoring its strategic importance.

Fit-for-Purpose Biochar: Customization and Quality Assurance

One of Airex Energy’s most compelling differentiators is its commitment to “fit-for-purpose” biochar customization. Recognizing that “biochar is not a single product,” the company collaborates closely with its joint venture plants to develop specific “recipes” tailored to customer applications. Khennache emphasized this, stating, “We don’t just make biochar and then try to sell it. We first identify the customer’s need, whether it’s for agriculture, metallurgy,  water treatment or other suitable applications and then we collaborate closely with the customer to develop the specific biochar product to meet that need. “This meticulous approach contrasts sharply with a “produce first, find a buyer later” mentality. Whether for 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, metallurgical applications, animal feed, or water and soil decontamination, Airex Energy adjusts specifications to achieve desired qualities. The biochar produced at Carbonity, for instance, is a carbon-rich product with high environmental qualities. This is supported by rigorous quality control measures, including weekly internal audits, on-site laboratory testing, and third-party certifications from institutions like Eurofins. This dedication to consistency and traceability, particularly within a continuous 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, addresses fundamental market concerns about product reliability and potential contamination.

Industrial Scale and Global Reach: Meeting Market Demand

The scale and continuity of Airex Energy’s operations also set it apart. Unlike many smaller, artisanal producers prevalent in some markets, Airex Energy’s technology supports industrial-scale, continuous production. This continuous process ensures “material stability and quality” and allows for greater volume and consistency of the final product. The Carbonity project, heralded as Canada’s first industrial-scale biochar production facility and the largest in North America, begins with an annual biochar production capacity of 10,000 tonnes. There are concrete plans to triple this output to 30,000 tonnes by 2026 with additional lines, positioning it as one of the most significant globally. Ambitiously, Airex Energy, in partnership with SUEZ, aims for a total global annual biochar capacity of 350,000 tonnes by 2035, necessitating the development of multiple Carbonity-scale projects. This ambitious growth trajectory underscores a clear vision for large-scale market penetration.

The market dynamics for Airex Energy’s technology are predominantly “market-driven,” with requests for their solutions originating from clients worldwide, including Europe, Asia, Arabic countries and South America. Michel Gagnon noted, “We are constantly receiving requests from all over the world, not just for equipment, but for complete solutions for residue management and decarbonization.” This global interest is driven by industrial players seeking solutions for residue management and value creation, appreciating the industrial scale, continuous production capabilities, and product consistency offered by Airex Energy. The biochar produced by Carbonity is currently distributed both locally in Quebec and in the European market, with aspirations to expand into the rest of Canada. Roughly half of Carbonity’s current biochar production is allocated to agricultural applications, with significant portions also going to metallurgy, animal feed, and early-stage applications in water and soil decontamination, as well as construction materials.

Economic Viability: Pricing and the Role of Carbon Credits

Pricing for Carbonity’s biochar depends on a variety of factors, from the type of biochar, quality specifications, proximity to the plant and associated carbon credit benefits. Some governmental programs can also help alleviate the cost for customers. Carbon credits play a significant, though not singularly defining, role in Airex Energy’s financial model. The Carbonity plant, at full capacity, is designed to sequester up to 75,000 tonnes of CO2 equivalent per year. This output generates certified and guaranteed carbon credits, which are marketed on the voluntary market by First Climate. Notably, Microsoft selected Carbonity in 2024 to purchase 36,000 carbon credits over the first three years of operations, a testament to the recognized quality and impact of the project. While recognizing the vital role of carbon credits in stimulating industry growth, Michel Gagnon articulated Airex Energy’s stance: “For us, carbon credits are important, but the core of our business is the biochar itself. The product has intrinsic value, and the carbon credits are an additional benefit that helps accelerate project viability.” This diversified revenue approach provides resilience, a stark contrast to some direct air capture (DAC) technologies that rely solely on carbon credit sales.

Canadian Market Dynamics: Quality, Research, and Policy Advocacy

The Canadian biochar market, as observed through Airex Energy’s operations, appears to prioritize “quality control, science, and research partnerships.” This leads to a more deliberate and scientifically validated path from conception to market, contrasting with what Khennache described as “the wild, wild west scenario we sometimes see in other markets where products are rushed without proper validation.” Airex Energy’s collaboration with institutions like the University of Laval, through its Research Chair on Cultivated Organic Soils, exemplifies this commitment to scientific validation and practical application. This partnership focuses on revitalizing de-vitalized agricultural soils and exploring biochar’s potential to improve soil health, enhance nutrient and water retention, and contribute to increased crop yields. This approach builds trust with end-users, particularly farmers, who require consistent and effective products to avoid risks to their crops and livelihoods.

Beyond commercial endeavors, Airex Energy is working to raise awareness of biochar in Canada, particularly in the agriculture sector. Geneviève Chartrand (Chief of Staff at Airex Energy) notes that supportive policies are less developed compared to the US and Europe. The potential for biochar production from forest residues as a way to slow down the propagation of forest fires, a pressing issue in Canada, is also a key talking point. Furthermore, Airex Energy has explored partnerships with Indigenous communities, particularly in Eastern Canada, where First Nations groups have shown interest in investing in and collaborating on residual biomass transformation ventures.

Milestones and Future Outlook: Carbonity’s Success and Industry Impact

The successful commissioning of the Carbonity plant in Port-Cartier has been a significant milestone, exceeding initial expectations for smoothness and product quality. Michel Gagnon reflected on this success: “The startup of Carbonity went even better than we anticipated. It’s a testament to our robust technology and the strong collaboration with our partners.” This success is attributed to robust technology, reliable equipment, and the supportive nature of their joint venture model, which emphasizes collaboration over mere equipment sales. The positive reception from municipalities in Quebec, who see “huge potential for biochar in terms of urbanism application” for city parks and contaminated soils, further highlights unmet market needs. Beyond the primary biochar product, the pyrolysis process at Carbonity also generates surplus energy in the form of steam and pyrolytic oil, which can be utilized as alternative fuels, further enhancing the project’s sustainability and economic profile. While tariffs have not significantly impacted Airex Energy due to localized procurement and current market exposure, the broader situation has spurred renewed interest in reducing internal trade barriers within Canada, a positive development for the industry.

Airex Energy’s strategic blend of advanced technology, customized product development, and a collaborative joint venture model positions it as a significant player in the industrialization of biochar. Their commitment to scientific rigor and quality control, coupled with a global market-driven approach, provides a compelling blueprint for the sustainable growth and maturation of the biochar industry. This model not merely drives commercial success but also fosters the broader acceptance and integration of biochar into diverse applications, setting a high standard for future development in this vital sector.