Cost-benefit analysis of using biochar to improve cereals agriculture DANE DICKINSON 1 , LUDOVICO BALDUCCIO 2 , JEROEN BUYSSE 2 , FREDERIK RONSSE 1 , GUIDO VAN HUYLENBROECK 2 andWOLTER PRINS 1 1 Biosystems Engineering, Ghent University, Coupure Links 653, Gent B-9000, Belgium, 2 Agricultural Economics, Ghent University, Coupure Links 653, Gent B-9000, Belgium Abstract Biochar has received considerable scientific attention in the past decade as a possible method for carbon storage and increasing agricultural yields. Despite this promise, however, economic assessments of biochar are yet to definitively establish the value of the technology, primarily due to discrepancy between observed short-term agronomic benefits and expectations of biochar as a lasting soil improver. This study investigated the economic value of biochar as an agricultural technology for long-term improvement of arable farming. From presently available field trial data, the costs and benefits of using biochar technology to enhance cereals agriculture were evaluated in two generalized geo-economic agricultural scenarios: North-Western Europe (NWE) and Sub-Saha- ran Africa (SSA). Cost models were developed to estimate the total cost of biochar from initial biomass feedstock acquisition to final soil application for each agricultural setting. Benefits of biochar application were estimated by statistical meta-analysis of crop yield data from published biochar field trials to find the increase in cereal grain yield attributable to biochar application for both NWE (+0.07 to +0.28 t ha 1 yr 1 ) and SSA (+0.18 to +1.00 t ha 1 yr 1 ). The grain yield improvement from a one-time biochar application was assumed to persist without decay for an independently varying time period, and the increase in grain production then monetised using pro- jected future commodity prices. The Net Present Value (NPV) of applying biochar was then calculated by setting present total costs against present total benefits as a function of biochar performance longevity. Biochar applica- tion was found to carry a positive NPV for cereal cropping in SSA in several scenarios where the duration of the biochar yield effect was assumed to extend 30 years into the future. Conversely, NWE biochar scenarios were all found to have negative NPVs even when the benefits time span was indefinitely stretched. Keywords: biochar, biochar cost model, biochar economics, biochar value, cereals agriculture, cost-benefit analysis Received 3 July 2013; accepted 20 January 2014 Introduction Biochar is an emerging soil amendment technology where thermally ‘charred organic matter is applied to soil in a deliberate manner, with the intent to improve soil properties’ (Lehmann & Joseph, 2009). Biochar can thus be understood as an agricultural improvement, analogous to irrigation or land terracing. The biochar concept has recently attracted considerable scientific interest for its capacity to enhance agricultural yields and carbon sequestration potential (Lehmann et al., 2006; Lehmann, 2007; Mathews, 2008; Sohi, 2013). How- ever, less attention has been paid to assessing its eco- nomic value despite being critical for any widespread implementation. Of studies that have considered the economics of bio- char as a soil amendment, very few have undertaken extensive cost-benefit analyses (CBA). McCarl et al. (2009) address numerous economic aspects including complementary bioenergy production, greenhouse gas (GHG) offsetting, and agronomic impacts of biochar on maize production within two specialized production scenarios. Although McCarl et al. (2009) calculate that biochar production and implementation would not be profitable in both fast and slow pyrolysis schemes, they consider only short-term agronomic benefits in their overall evaluations (a 2-year gain in maize production from biochar application). Collison et al. (2009) demon- strate that biochar application could improve the profit- ability of arable agriculture by improving crop yields and quality while reducing fertilizer and cultivation costs, but do not attempt to estimate the costs of biochar acquisition and application, therefore leaving their profitability assessments incomplete for judging net economic value. Conversely, Shackley et al. (2011) undertake an extensive analysis of possible biochar deployment scenarios, GHG abatement potential, and Correspondence: Ludovico Balduccio, tel. +32 9 264 5929, fax +32 9 264 6246, e-mail: ludovico.balduccio@ugent.be © 2014 John Wiley & Sons Ltd 850 GCB Bioenergy (2015) 7, 850–864, doi: 10.1111/gcbb.12180