Abstract: The prominent role of agriculture in greenhouse gas (GHG) emissions has increased global interest in biochar. This carbonaceous biomass product has emerging efficacy for GHG emissions reduction. While a growing body of literature indicates positive economic impacts of biomass-related products, scant evidence exists about the potential regional economic impacts of biochar production. Since biochar is a new industry and there is no North American Industry Classification System (NAICS) code for biochar, we modified the available industries in the IMPLAN database to estimate the direct, indirect, and induced economic impacts of six potential biochar pricing and production opportunities in Central Valley, California. Results suggest that depending on the biochar price and conversion rates, biochar would create between 16.56 and 17.69 new full- and part-time jobs per year that would contribute between $1.2 and $5.75 million per year to labor income. Biochar production would add to the Gross Domestic Product (GDP) about $106,295 ($5.2 million) per year with a conversion rate of 15% (35%) and a biochar price of $280 ($2,512) per metric ton. Similarly, biochar’s impacts on gross output would be positive, regardless of the biochar conversion rate and price, which suggests the need for more investment in the sector. We find that all regions would benefit in terms of employment, labor compensation, value addition, and gross output though Madera County would have the least economic returns. Meanwhile, Fresno County with the most biomass would have the most economic impacts, suggesting that policy should be directed at encouraging biomass production and marketing in areas with the most biomass.

It is well established that the global practice of burning crop residues, such as orchard biomass, harms human health and the environment. A bioeconomy for orchard biomass may reduce open burning, facilitate the recovery of nutrients that improve soil health, and boost economic growth. We present a techno-economic analysis for converting orchard waste into biochar, a charcoal-like substance that shows promise for improving soil health, but that is considered an experimental product with emerging efficacy and limited market demand. We impute values derived from a cost analysis of biochar production in California's Central Valley into a regional economic input-output model to demonstrate economic growth and a bioeconomy for biochar made with orchard waste. Results from a stochastic Monte Carlo simulation show a probable range of biochar production costs between $448.78 and $1,846.96 (USD) Mg^-1, with 90% probability that costs will range between $571 and $1,455 Mg^-1. A sensitivity analysis shows that production costs are most responsive to biochar production rates. A modifiable Excel-based biochar enterprise budget that includes fixed and variable biochar production costs is provided as Supplementary Material. The regional economic analysis demonstrates positive economic growth as defined by job creation, labor compensation, value-added product, and gross output. Stochastic cost estimates and net positive regional economic impacts support economic feasibility of a circular bioeconomy for waste orchard biomass when coupled with governmental policy initiatives. Results may contribute to developing a circular bioeconomy for biochar and orchard biomass in the study region and elsewhere in the world.