Biochar Carbon Removal through slow pyrolysis is among the most mature Carbon Dioxide Removal technologies and is gaining increasing economic relevance. In Europe alone, the number of pyrolysis plants grew from around 20 to over 200 between 2015 and 2024. But how are the business models of plant operators actually configured – and how might they develop towards 2045? The study analyses 39 pyrolysis plants with energy co-production in Germany, Austria, and Switzerland based on publicly available information, complemented by 11 semi-structured interviews with plant operators and manufacturers, and a backcasting workshop with industry experts. 

The analysis reveals that pyrolysis business models are diversely configured today. Four archetypes can be distinguished: 

1. Integrated biomass utilizers process their own residual biomass and use biochar as well as heat primarily for their own consumption.
2. Energy users build pyrolysis plants to supply themselves with renewable heat and electricity while marketing biochar and Carbon Removal Certificates to external customers.
3. Energy suppliers – often municipal or public utilities – leverage existing energy infrastructure and market energy as their core product.
4. Specialized pyrolysis plant operators actively identify suitable sites with matching heat demand and biomass availability, and place particular emphasis on customer relationship management and biochar marketing. 

A key finding is that biochar and electricity are rarely prioritized simultaneously. Operators focused on electricity as their main product tend to treat biochar as a by-product. Those who prioritize biochar rarely generate electricity. Flexibility in energy provision is technically feasible but has so far been barely realized – insufficient economic incentives and competing operational priorities stand in the way. 

The authors further show that workshop participants see the greatest potential for 2045 in heat provision – for instance through integration into municipal heat planning, seasonal storage, and new organizational models such as cooperatives. Bio-oil as a fuel and hydrogen production from syngas are seen as promising long-term pathways, but require substantial further technological progress and supportive policy frameworks. Flexible electricity generation likewise remains a future topic for participants. 

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