FINAL REPORT Use of Biochar from the Pyrolysis of Waste Organic Material as a Soil Amendment Submitted by Center for Sustaining Agriculture and Natural Resources Washington State University July 2009 David Granatstein, Sustainable Agriculture Specialist Chad Kruger, BIOAg Educator Project Leaders and Co-Principal Investigators Center for Sustaining Agriculture and Natural Resources Washington State University, Wenatchee, WA 98801 Harold Collins, Soil Scientist, Co-Principal Investigator USDA-ARS, Prosser, WA 99350-9687 Manuel Garcia-Perez, Chemical Engineer, Co-Principal Investigator Department of Biological Systems Engineering Washington State University, Pullman, WA 99164-6120 Jonathan Yoder, Economist, Co-Principal Investigator School of Economic Sciences Washington State University, Pullman, WA 99164-6210 This project was completed under Interagency Agreement C0800248 with the Center for Sustaining Agriculture and Natural Resources, Washington State University. Use of Biochar from the Pyrolysis of Waste Organic Material as a Soil Amendment Ecology Publication Number 09-07-062 To ask about the availability of this document in a format for the visually impaired, call the Solid Waste and Financial Assistance Program at 360-407-6900. Persons with hearing loss can call 711 for Washington Relay Service. Persons with a speech disability can call 877-833-6341. Acknowledgments The Washington State Department of Ecology provided funding for this project through the Beyond Waste Organics Waste to Resources (OWR) project. These funds were provided in the 2007-2009 Washington State budget from the Waste Reduction Recycling and Litter Control Account. OWR project goals and objectives were developed by the Beyond Waste Organics team, and were approved by the Solid Waste and Financial Assistance Program. This report is available on the Department of Ecology’s website at www.ecy.wa.gov/beyondwaste/organics. Some of the figures and photos are in color and can be seen in color in the on-line file. The reader may be interested in the other project reports supported by Organic Waste to Resources and Waste to Fuel Technology funding sponsored by Ecology. These are also available on the “organics” link. The Washington State University Extension Energy Program will make this report accessible in its broader library of bioenergy information at www.pacificbiomass.org.   Citation: Granatstein, D., C.E. Kruger, H. Collins, S. Galinato, M. Garcia-Perez, and J. Yoder. 2009. Use of biochar from the pyrolysis of waste organic material as a soil amendment. Final project report. Center for Sustaining Agriculture and Natural Resources, Washington State University, Wenatchee, WA. 168 pp. Primary Contributing Authors* by Chapter (and associated appendices) Executive summary: David Granatstein Chapter 1: David Granatstein Chapter 2: Manuel Garcia-Perez Chapter 3: Manuel Garcia-Perez Chapter 4: Harold Collins Chapter 5: Suzette Galinato (IMPACT Center, School of Economic Sciences) and Jonathan Yoder Chapter 6: Suzette Galinato and Jonathan Yoder Chapter 7: Suzette Galinato and Jonathan Yoder Chapter 8: David Granatstein and Chad Kruger *Authors are listed in alphabetical order by chapter.   Beyond Waste Objectives   Turning organic wastes into resources, such as compost, bioenergy, biofuels, recovery of stable carbon and nutrients and other products promotes economic vitality in growing industries, and protects the environment. This creates robust markets and sustainable jobs in all sectors of the economy, and facilitates closed-loop materials management where by-products from one process become feedstocks for another with no waste generated. ii Executive Summary. Biochar is a charcoal-like material produced by the thermochemical pyrolysis of biomass materials. It is being considered as a potentially significant means of storing carbon for long periods to mitigate greenhouse gases. Much of the interest comes from studies of Amazonian soils that appear to have been amended with biochar which led to significant improvements in soil quality and large increases in crop yields. These changes have persisted for hundreds, if not thousands, of years. What is not known is how long it takes for biochar to integrate with the soil and thus express its benefits. However, biochar does represent a stable form of carbon in soils and thus provides an intriguing potential carbon storage strategy. In this study, biochars from several different feedstocks were evaluated for their characteristics and their fate in five different Washington State soils. Herbaceous feedstock sources such as switchgrass and digester fiber (from anaerobically digested dairy manure) had C contents of 60 and 67% respectively, as well as significantly higher N contents then the other biochars. Woody feedstock biochars had C contents above 75% with C:N ratios ranging from 176-588. Activated charcoal had a C and N content of 87% and 0.47%, respectively. Biochars tested in this project raised soil pH, but did not lead to consistent plant growth improvements. Soil nitrate levels were reduced with increasing biochar rate, perhaps due to ammonium adsorption by the biochar. All biochars on all soil types did increase soil C; the largest carbon impact was on the Quincy sand, the soil with the lowest organic matter content. Biochar C was stable in soil, and mean residence times are estimated to be in the hundreds of years. Also, the biochar did not accelerate loss of indigenous organic matter through the ‘priming effect.’ A bench-scale pyrolysis reactor was built at Washington State University (WSU) to provide biochar from different underutilized biomass feedstocks in the state, and at different process temperatures using slow pyrolysis. In order to consider agricultural use of biochar without unintended environmental consequences, a literature review was conducted on the presence of dioxins and polyaromatic hydrocarbons (PAH) in biochar and bio-oil. No evidence was found. Samples of biochar and bio-oil were then qualitatively and quantitatively analyzed for these compounds. Only phenanthrene, a PAH, was found above the limits of detection, but at levels much lower than those considered an environmental hazard by the Dept. of Ecology. These tests involved biochars made from four different feedstocks and at four different temperatures. While the results cannot be extended to all other feedstocks and temperatures, they do indicate a very low likelihood of environmental contamination by biochar. Currently, there is no commercial pyrolysis facility in Washington State (May 2009). An economic analysis was done to determine the cost of production of biochar, using biomass from forest thinning done for wildfire risk reduction as a case study. Using fast pyrolysis, a stationary facility with the material hauled to a central site had the lowest breakeven cost of about $87 per iii metric ton of biochar. The few businesses with biochar have mentioned possible pricing of $200 per ton. These businesses are typically co-located with a feedstock, at a location where waste heat can be utilized, and eligible for various renewable energy credits. Thus, pyrolysis appears to be economically feasible at larger scale, and smaller scale systems could be viable when using existing collected wastes, which dramatically decreases transportation costs. Construction debris, storm debris, and right-of-way clearing biomass could all represent opportunities for pyrolysis, along with co-location at forest products industry sites and municipal solid waste facilities. The development of bio-oil refineries to produce transportation fuels and other high value products will improve the economic viability of pyrolysis. Recent studies demonstrated that at least 40 mass % of bio-oil can be converted into green gasoline and green diesel at prices close to $2 per gallon, and that pyrolytic sugars in bio-oil can be separated and fermented to ethanol, improving the refining process and the potential value. The deployment of bio-oil refining capacity is critical for the success of this industry. If the U.S. develops a mandatory carbon cap and associated markets, and if biochar is approved for carbon storage payments, then the economics could be dramatically altered. At a price of $31 per metric ton CO , all the 2 facilities modeled in this study would be profitable. If pyrolysis of biomass expands due to changing energy prices and policies, the economic optimization of biochar and bio-oil developed in this study will be a valuable tool (but will not guarantee profitability if prices are too low). Slow pyrolysis and lower temperatures generally favor biochar production, while fast pyrolysis and higher temperatures produce mostly bio-oil with a small amount of biochar. Temperature also affects product quality, and quality affects product value. In one section of this study, we assume energy content is the basis for value of biochar and bio-oil. For slow pyrolysis the optimal estimated yield and price for biochar are 26% and $0.077/kg, and for bio-oil optimal yield and price are 38% and $0.192/kg. Maximum revenue for slow pyrolysis is $0.09296/kg of forest-based feedstock (assuming both products are used solely for their energy value). The implied price ratio (bio-oil:biochar) for slow pyrolysis is 2.4686. If the market prices were fixed and constant across the process temperature range, this price ratio would lead to an economically optimal temperature of 360°C for slow pyrolysis, favoring biochar production. For fast pyrolysis, economically optimal biochar yield (based on energy content) is 19.8%, with bio-oil yield at 54%. Biochar price is $0.076/kg, and bio-oil price $0.19/kg. Maximum revenue is $0.11848/kg. So, based on energy content, the fast pyrolysis provides higher revenues by $0.0255/kg; an increase of 27%. It is possible that the economic value of the biochar for its energy content would exceed its value for carbon storage. This might then reduce the impetus to make biochar, as it is likely more efficient to use the original feedstock directly for energy rather than the pyrolysis process. In contrast, if biochar has a higher value than that of its energy content, this would induce lower pyrolysis temperatures and resulting biochar yields would be higher than those listed above. iv Pyrolysis can address two challenges – the need for renewable energy, in particular, liquid fuels; and alternatives to burning as a disposal method for waste biomass. The controlled thermochemical conversion of pyrolysis can wring valuable products from biomass that would otherwise only contribute air pollutants. Further research into the potential soil and crop productivity benefits of biochar are needed in order to make its use economically feasible for land managers and to provide a value stream back to the pyrolysis business to also make it economically viable. While agriculture and forestry represent the potential to store large amounts of biochar, specialty uses such as buffer strips, water treatment, and compost amendment need to be explored as they could be more economically attractive in the near term despite a smaller overall potential market. Next Steps To build on the initial results from this study and the growing interest in biochar and pyrolysis, several steps should be considered. 1. Develop a pyrolysis unit in-state that can provide quantities of biochar needed for field level research (e.g., 10-20 tons/year). A slow pyrolysis system may be preferable because it will produce a greater percentage of biochar from biomass, and the system should also allow capture of bio-oil to help continue that line of research. Field research to date has been hampered by lack of appropriate quantities of biochar. 2. Expand research on crop response to biochar amendments of Washington soils. Where responses are seen, conduct research on the mechanisms responsible so that predictions of biochar efficacy can be made. 3. Research the biochar “aging” process. We do not currently understand whether biochar needs to integrate with the soil matrix over time in order to express any benefits. Development of a method to artificially age biochar in soil would be an important step. 4. Evaluate biochar as an additive to other organic amendments (e.g., compost) and a potential carrier for microbial inoculants and nutrients. 5. Test novel uses of biochar to recover nutrients from water (e.g., livestock lagoons, drainage canals) and recycle them back to land. Key findings Chapter 2. • Biochar yield decreases (at a decreasing rate) with increasing slow pyrolysis temperature. Chapter 3. • The thermodynamics of the pyrolysis process do not support formation of dioxins and PAHs, as confirmed by a literature search, qualitative analysis, and quantitative analysis. v • The only compound found above the limit of detection was phenanthrene, and its environmental hazard was far below standards set by Ecology. All dioxin levels were similar to background levels found in Washington State soils. Chapter 4. • Biochar carbon concentration and pH increase with increasing pyrolysis temperature, while N and S concentration generally remain unchanged. • Woody feedstocks lead to higher biochar C concentration than herbaceous feedstocks, but they are of lower pH and liming value. • Biochar added to soil did not lead to significant changes in CEC, but did lead to some increase in soil water holding capacity for the Quincy sand. • All biochars on all soil types did increase soil C with increasing rates, and the C appears stable. The biochar did not accelerate loss of indigenous organic matter through the ‘priming effect.’ • Biochar led to a decreasing amount of soil nitrate production and a general decrease in available N concentration with increasing biochar rate. The N added with biochar does not become plant available. • Biochar addition to soil did not increase wheat plant growth in a greenhouse trial. • Biochar did interact with two herbicides tested, and this would need to be considered by farm managers. Chapter 5. • Higher temperatures (up to a point) lead to more bio-oil and less biochar, as does fast pyrolysis versus slow pyrolysis. • The relative prices of bio-oil and biochar influence the economic trade-off between production of bio-oil and biochar. If producers can receive high prices for bio-oil but low prices for biochar, they can increase sales revenue by choosing a temperature and heating rate that yields more bio-oil at the expense of biochar (i.e., high temperature, fast pyrolysis). In contrast, if biochar prices are high and bio-oil prices are low, there is an incentive to choose a lower final temperature and slow pyrolysis that will provide more biochar and less bio-oil. • As temperature increases, the yield of biochar decreases but bio-oil increases up to a point, then declines. Above about 525oC, bio-oil production declines in the case of fast pyrolysis; thus this represents an economic threshold to stay below. For slow pyrolysis, the upper bound economically valid temperature is about 549oC. • Choosing the final process temperature can be economically important. However, even if the optimal combination of biochar and bio-oil is produced, it may not provide an economically profitable enterprise. Profitability depends on whether or not the revenues from the sale of biochar and bio-oil outweigh the cost of producing the two products. Chapter 6. • Forest thinning represents a major potential feedstock source for pyrolysis in Washington in terms of quantity of under-utilized biomass. vi • Based solely on energy content, biochar is worth about $114/metric ton and bio-oil about $1.06/gallon. • Among the four types of facilities studied, only the large-scale, stationary facility has positive returns over total production cost ($4/ton dry feedstock) for biochar and bio-oil production at prices based on energy content. • The break-even selling price for biochar from a stationary facility is $87/metric ton without transportation to the end user. • The break-even selling price for bio-oil from a stationary facility is $1.03/gallon without transportation to the end user. • If bio-oil can be sold for $1.15/gallon, then the break-even price for biochar from a stationary facility drops to $7/metric ton. • Labor costs are the major factor in driving up costs for a smaller mobile pyrolysis unit. • For a stationary facility to be profitable under the assumed prices and costs, feedstock cost should not be higher than $22/ton. • Another key factor for profitability is the steady supply of feedstock. Siting pyrolysis with existing collected feedstocks, uses for waste heat, and other synergies is important for its economic viability. Chapter 7. • Biochar represents an offset of about 2.93 MT CO per MT biochar applied to the soil. 2 (MT = metric ton = 1000 kg or 2200 lb) • Biochar production via pyrolysis still provides a large C sequestration potential even after emissions from process energy are subtracted. • Biochar can substitute for agricultural lime for raising soil pH, but is much more expensive. • With carbon offsets, biochar production can become profitable when trading prices per metric ton CO are $16.44, $3.39, and $1.04 for the smaller mobile, transportable, and 2 relocatable facilities, respectively. A stationary facility is profitable without a carbon credit. vii TABLE OF CONTENTS Acknowledgements …………………………………………………………………………… ii Executive Summary …………………………………………………………………………... iii Chapter 1. INTRODUCTION 1.1. Beyond Waste ………………………………………………………………………… 2 1.2. Project outline …………………………………………………………………………. 2 Chapter 2. PRODUCTION OF BIOCHAR 2.1. Introduction ………………………………………………………………………………. 4 2.2. Construction of a batch pyrolysis reactor at WSU …………………………………… 4 2.3. Feedstock used ……………………………………………………………………….. 5 2.4. Yield of biochar ………………………………………………………………………….. 6 2.5. Construction of an auger pyrolysis reactor at WSU …………………………………. 7 2.6. Conclusions ……………………………………………………………………………… 9 Chapter 3. ASSESSING THE ENVIRONMENTAL IMPACT OF BIOCHAR APPLICATION TO SOILS. 3.1. Introduction …………………………………………………………………………….. 10 3.2. Literature review ……………………………………………………………………….. 10 3.3. Qualitative analyses …………………………………………………………………… 11 3.4. Quantitative analyses …………………………………………………………………. 12 3.5. Conclusions …………………………………………………………………………….. 16 Chapter 4. BIOCHAR CHARACTERIZATION, AND SOIL AND PLANT EFFECTS 4.1. Introduction ……………………………………………………………………………… 17 4.2. Characterization of feedstocks and biochars ………………………………………... 17 4.3. Influence of biochars on soil characteristics ………………………………………... 22 4.4. Effect of biochar on C-mineralization, C-storage and C-turnover ………………... 24 4.5. Effect of biochar on N-mineralization and N-storage ……………………………….. 26 4.6. Effects of biochar on wheat growth ………………………………………………….. 27 4.7.  Other effects of biochar additions …………………………………………………….. 27 4.8. Summary ………………………………………………………………………………… 28 4.9. Literature cited …………………………………………………………………………. 29 BIOCHAR ECONOMICS ……………………………………………………………………… 58 Chapter 5. ECONOMIC TRADEOFF BETWEEN BIOCHAR AND BIO-OIL PRODUCTION VIA PYROLYSIS 5.1. Non-technical chapter summary …………………………………………………….. 59 5.2. Economic foundations ………………………………………………………………… 61 5.3. Econometric model and yield function estimation …………………………………. 64 5.4. Data …………………………………………………………………………………….. 65 5.5. Results and discussion ……………………………………………………………….. 68 5.6. Optimal temperature for fixed prices ………………………………………………… 71 5.7. Optimal temperature for endogenous prices ……………………………………….. 73 5.8. Summary ……………………………………………………………………………….. 75 viii Chapter 6. ECONOMIC FEASIBILITY OF BIOCHAR PRODUCTION 6.1. Overview of biomass feedstock availability in Washington ……………………….. 76 6.1.1. Field crop residues ……………………………………………………………. 77 6.1.2. Forest residues ………………………………………………………………… 78 6.1.3. Animal waste …………………………………………………………………… 80 6.2. Feasibility of biochar production – Related studies ………………………………… 81 6.3. Estimated costs and returns for producing biochar and bio-oil in Washington State ……………………………………………………………………… 83 6.3.1. Joint products from pyrolysis …………………………………………………. 84 6.3.2. Case study on forest thinning ………………………………………………… 84 6.3.3. Enterprise budgets for production of biochar and bio-oil ………………….. 89 6.3.4. Simulated feasibility scenarios ……………………………………………..... 97 6.3.5. Comparisons to existing commercial pyrolysis enterprises ……………….. 102 6.3.6. Potential biochar transportation savings for soil amendment ……………… 103 6.3.7. Difference from other studies …………………………………………………. 104 Chapter 7. ECONOMIC VALUE OF BIOCHAR IN CROP PRODUCTION AND CARBON SEQUESTRATION 7.1. Impacts of biochar on crop productivity — Related studies ………………………. 107 7.2. Biochar carbon sequestration — Related studies, policy and program ………….. 111 7.2.1. Related studies ………………………………………………………………… 111 7.2.2. Kyoto Protocol, trading system and national programs ……………………. 112 7.3. Estimated costs and returns for using biochar as a soil amendment ……………. 114 7.3.1. Benefits of biochar as soil amendment ……………………………………… 114 7.3.2. Adjusted break-even prices of bio-oil and biochar …………………………. 115 7.3.3. Costs and returns of crop production ………………………………………… 118 7.3.4. Implications ……………………………………………………………………… 120 7.3.5. Potential uses of biochar ………………………………………………………. 122 7.4. Economics References ………………………………………………………………… 123 Chapter 8. OUTREACH, OUTCOMES, CONCLUSIONS 8.1. Outreach ……………………………………………………………………………….. 131 8.2. Outcomes ………………………………………………………………………………. 132 8.3. Conclusions ……………………………………………………………………………. 133 APPENDICES Appendix A. Results from qualitative analysis of biochar for dioxins and PAHs ……….. 136 Appendix B. Biochar characterization and effect on soil and plant growth ……………… 144 Appendix C. Biochar economic analysis supporting materials …………………………… 148 Appendix for Chapter 5 ……………………………………………………………………… 148 Appendix for Chapter 6 ……………………………………………………………………… 151 Appendix for Chapter 7 ……………………………………………………………………… 167 ix