Coconut Shell Biochar

The ask

Build a biochar production business that pyrolyses coconut shells from Bangladesh's coastal belt into high-carbon biochar, selling it to farmers as a soil amendment and to corporate buyers as a verified carbon removal credit — turning agricultural waste into a durable carbon sink.

Why now

Coconut shell biochar consistently achieves 85–90% carbon content and is the highest-grade feedstock for biochar carbon credits (BCC) under Puro.earth and the Biochar Carbon Credit Standard. BCC prices have risen to $200–400/tonne CO₂e on the voluntary market as corporate net-zero buyers seek permanent carbon removal. Pyrolysis units at the 200–500 kg/hour scale are now commercially available from Indian and Chinese manufacturers at $30,000–80,000, making entry viable for mid-size operations.

Why Bangladesh

Bangladesh's coastal belt — Noakhali, Cox's Bazar, Barisal — produces large volumes of coconuts with shells currently burned openly or discarded. Open burning of agricultural residues contributes significantly to Bangladesh's air quality crisis; pyrolysis converts the same material into a stable carbon product rather than emitting it. Bangladeshi soils are often waterlogged and low in organic carbon; biochar's water-retention and CEC-enhancement properties are well-matched to haor and char island conditions. Proximity to India's larger biochar market provides an export fallback.

As a business

Revenue comes from two streams at different margins: biochar sold domestically to farmers and horticulturalists (৳15,000–25,000/tonne), and carbon removal credits sold internationally ($200–350/tonne CO₂e, at roughly 2.5 tonnes of biochar per tonne CO₂e sequestered). The domestic market provides near-term cash flow; the carbon credit market provides the margin that makes the economics compelling. Syngas co-product from the pyrolysis unit can power the facility, cutting energy costs by 30–40%.

Economics

Move the sliders to model your own biochar operation. Defaults are order-of-magnitude estimates — pressure-testing them is part of what a founder pitches us.

What ZEPH would back

A founder who has secured a feedstock supply agreement with a coconut processor or traders' cooperative and understands the Puro.earth or Gold Standard certification pathway. We would co-invest on pyrolysis capex in exchange for rights to the carbon credit revenue stream — the biochar business alone is borderline; the combined model is compelling.

Impact

Pyrolysing 3 tonnes per day of coconut shells produces roughly 22–25 tonnes of biochar per month — permanently sequestering an estimated 9–10 tCO₂e per month (approximately 110 tCO₂e per year) at a 30% biochar yield and 2.5:1 biochar-to-CO₂e ratio. Open burning of those same shells would emit approximately 5 tCO₂e per month, making the avoided-burning benefit an additional 60 tCO₂e per year. At 20 tonnes per day — a realistic five-year scale — the operation sequesters 700+ tCO₂e per year, qualifies for Puro.earth Biochar Carbon Credits at $200–350/tonne, and replaces imported chemical soil amendments across the coastal farming belt.