Natural Resources Committee: Inquiry into Biochar

The Hon. R.P. WORTLEY (16:37): I move:

That the fifth report of the committee, on its inquiry into biochar, be noted.

On 22 June 2022, the Natural Resources Committee resolved to undertake an inquiry into biological charcoal (biochar) to address the increasing interest in biochar's production and use in South Australia.

The biochar inquiry looked at the production of biochar in South Australia, interstate and internationally; current and possible future uses of biochar in South Australia, interstate and internationally; the potential impact on the production and use of biochar, including consideration of (a) environmental impacts, (b) the best use of raw material, (c) climate impacts and potential carbon credits, and (d) productivity of crops and animals; the potential health impact of the production, use and consumption of biochar; any legal or financial administrative barriers to the production, use and export of biochar in South Australia and possible solutions to those barriers; and any other relevant matter.

The committee received 25 submissions and conducted nine hearings from 16 June 2022 to 6 July 2023. The committee undertook three separate site visits to current and potential biochar producers in South Australia. Additionally, the committee's staff attended an Adelaide biochar summit and the Australian Biochar Industry 2030 Roadmap launch in Canberra. The Australia New Zealand Biochar Industry Group (ANZBIG) hosted both events.

The committee heard from representatives of state government departments, local government and related government bodies, individuals and not-for-profit organisations, industry associations and groups, private companies and institutions (including consulting firms, producers and suppliers), and academia.

Biochar is a form of charcoal with high carbon content produced by burning biomass in an environment devoid of or with extremely low amounts of oxygen. The process of burning biomass is called pyrolysis. Pyrolysis also produces gases and liquids as by-products. The equipment used to produce biochar and the sites where biochar can be manufactured varies. The equipment also differs from a mobile facility to that of a fixed plant. The type of technology used in creating biochar is one essential factor in the char's quality and efficacy.

The type of feedstock is another consideration in biochar production. Biochar can be derived from pyrolysising biomass such as wood, wood residues, agriculture residues and biosolids such as sewage sludge. Like the pyrolysis equipment, the types of feedstocks also dictate the quality of the biochar produced. Evidence put to the committee suggests that biochar production is growing internationally. In South Australia, biochar production and use is currently in its infancy.

Most of the discussions on biochar are related to the pyrolysis technologies as well as how biochar can best be customised to suit clients' requirements. Biochar is currently being used in the agriculture, livestock and water sectors; however, the committee heard that the construction, metallurgy and biofuel sectors could be future users of biochar.

Evidence presented to the committee suggested that the creation and use of biochar may improve the sustainability of organic waste and field burns. Heat energy released from pyrolytic biochar production could potentially offset fossil fuel usage. Biochar may improve the productivity of crops by being a soil ameliorant. The committee heard that the use of the honeycomb structure of biochar makes it a useful absorbent, increasing the soil's fertiliser, nutrient and water-holding capacity. Evidence produced to the committee recommended mixing biochar with organic fertilisers to be most effective.

In terms of animal productivity, the addition of biochar to animal feed, particularly cattle feed, is claimed to improve both the animal's features and its products. Biochar as an animal feed additive must come from suitable feedstocks. It can be said that by creating and using biochar, value is created from materials previously categorised as waste. Furthermore, instead of disposing what are classified as waste products, by making them into biochar, and using it as soil input, animal feed additive, or water filter, among others, the biochar process deflects from the traditional 'make, use and dispose' economic model.

Biochar has recently been recognised by the United Nations' Intergovernmental Panel on Climate Change report titled Climate Change 2022: Mitigation of Climate Change as a new method that could reduce emissions and sequester carbon under the direct air carbon capture and storage category in agriculture.

The potential health impacts related to the production and use of biochar were related to emissions generated during its production and work health and safety related hazards. Nonetheless, international and Australian biochar industry groups have proposed mechanisms to deal with these dangers.

Given the nascent biochar industry in Australia in general, and South Australia in particular, the biochar industry is faced with challenges related to the types of feedstocks and pyrolysis equipment for its production and usage. To address this, agreed standards and certification are needed to ensure the quality of the char made. The high production cost involving the pyrolysis equipment and transportation of biochar to customers are the main financial barriers. Education activities regarding biochar's application and use and the intricacies of the pyrolysis equipment must be increased. These initiatives could grow the demand for biochar and in turn facilitate cost-effective production.

The evidence presented to the committee suggested that a policy-related concern in the production and use of biochar is its non-inclusion as an emissions reduction methodology by the Emissions Reduction Fund of the Clean Energy Regulator. Having a biochar methodology in the ERF would mean that biochar producers or suppliers could be issued with Australian carbon credits. Regarding research and development, a multilevel collaboration between stakeholders in further research or longitudinal trials is proposed.

The production and use of biochar is seen to add potential socio-economic benefits, especially for regional areas. The committee heard of potential job generation and partnerships of small-scale biochar producers to improve financial advantage from their participation in the biochar industry. While production and use of biochar faces administrative, financial, legal and research barriers, interest in and support for biochar is growing, with promising potential for future applications in the agriculture, livestock and water sectors.

I commend the members of the committee for their contributions to this report: the Presiding Member, the Hon. Mr Leon Bignell MP; Sarah Andrews MP; Mr David Basham MP; the Hon. Ben Hood MLC; Ms Catherine Hutchesson MP; and the Hon. Frank Pangallo MLC. All members have worked cooperatively on this report. I would also like to thank previous committee member the Hon. Nicola Centofanti MLC. Finally, I would like to thank the committee staff for their assistance.

Debate adjourned on motion of Hon. L.A. Henderson.