The Australian Renewable Energy Agency (ARENA) has awarded a A$4.8 million grant to Biocarbon Pty Ltd to facilitate the construction of a commercial-scale demonstration plant in New South Wales, Australia. This facility is designed to produce “GreenChar,” a renewable biocarbon product tailored specifically for the metallurgical sector. By securing this funding, Biocarbon Pty Ltd aims to transition from pilot-level research to a continuous manufacturing process capable of supplying the high volumes required by heavy industry. The project represents a targeted effort by the Australian government to support the domestic manufacturing of sustainable industrial inputs and reduce the carbon intensity of essential commodities.

A primary challenge addressed by this project is the heavy reliance of the steel industry on fossil-based carbon, specifically for the production of steel via electric arc furnaces (EAF). In these furnaces, carbon is used as a foaming slag agent and a chemical reductant; traditionally, this carbon is sourced from anthracite or coal-based recarburizers. Because steelmaking is an energy-intensive process with specific chemical requirements, finding a sustainable substitute that maintains the necessary structural properties of the steel has proven difficult. Furthermore, the lack of commercial-scale production for high-specification biocarbon has previously limited its adoption by major industrial players.

The solution provided by Biocarbon Pty Ltd involves a proprietary thermochemical process that converts sustainably sourced woody 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 GreenChar. Unlike generic 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, this product is engineered to meet the stringent physical and chemical specifications required for metallurgical applications. The ARENA-funded project involves the deployment of a large-scale retort system that ensures consistent quality and energy efficiency during production. By refining the mechanical properties of the biochar, the company provides a direct “drop-in” replacement for fossil carbon, allowing steel manufacturers to integrate renewable materials into existing production lines without requiring extensive equipment modifications.

The anticipated outcomes of this initiative include a significant reduction in the Scope 1 emissions associated with Australian steel production. Successful operation of the facility will provide a proof-of-concept for the commercial viability of biocarbon in heavy industry, potentially displacing thousands of tons of fossil coal annually. Additionally, the project establishes a localized supply chain for biomass residues, contributing to regional economic stability and circular economy objectives. For the broader biochar industry, this partnership serves as a benchmark for the industrialization of biogenic carbon, demonstrating its utility beyond agricultural applications and into the global transition toward “green” steel manufacturing.