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NetZero Raises Over $19M for Biochar Expansion in Brazil

French carbon removal company NetZero has secured €18 million ($19.5 million) in new funding from government-backed impact investor STOA Infra & Energy. The capital infusion aims to support NetZero’s expansion by establishing new biochar plants in Brazil and other tropical regions. 

The announcement coincides with French President Emmanuel Macron’s state visit to Brazil and follows NetZero’s previous €11 million Series A funding round. The transaction marks the first investment of STOA’s carbon strategy and is significant as one of the largest deals in the biochar sector. It also represents the first major initiative aimed at scaling carbon removal efforts in emerging countries.

NetZero’s Vision for Climate, Agriculture, and Society

NetZero focuses on scaling up biochar in tropical regions, aiming to benefit both the climate and local communities.

Biochar, derived from plant residues and stored in soil, serves as an effective method for permanently removing carbon from the atmosphere while simultaneously enhancing soil quality. This results in increased agricultural productivity, reduced fertilizer usage, and higher crop yields.

NetZero’s innovative biochar technology addresses 3 significant challenges simultaneously:

  • Climate change: By producing biochar, NetZero removes atmospheric carbon for millennia, contributing to long-term carbon sequestration.
  • Sustainable agriculture: The use of biochar as a soil amendment improves soil quality and crop productivity, promoting sustainable farming practices.
  • Social impact: NetZero’s initiatives enhance farmers’ livelihoods and create well-paid industrial jobs in rural areas of developing countries, thereby fostering economic development and social equity.

 

NetZero’s unique approach to leveraging biochar allows for high-permanence carbon removal from the atmosphere. The company’s model aligns with the Intergovernmental Panel on Climate Change (IPCC) and the European Union’s recognition of atmospheric carbon removal as crucial for achieving net zero emissions globally. 

Among the IPCC’s validated technical solutions, biochar stands out for its proven ability to remove carbon from the atmosphere and store it in soils for extended periods.

What is Biochar? Harnessing Nature’s Power

The carbon removal company uses agricultural residues exclusively as feedstock for producing biochar. These residues include coffee or cocoa husks and shells, sugarcane bagasse, coconut shells and fibers, peanut/cashew shells, and more.

Through a process called pyrolysis, these organic materials undergo intense heating in the absence of oxygen. This results in the breakdown of complex molecular chains and the formation of a solid, stable product known as biochar.

biochar from biomass residues

While biochar can serve various purposes, NetZero’s primary focus lies in its agricultural application, where it is mixed with topsoil to enhance soil quality and fertility.

During the production process, substantial amounts of renewable energy in the form of gases and heat are generated. The startup then harnesses this energy, using a portion for its own operations while supplying the rest to local partners as electricity or heat. 

Biochar has gained attention for its ability to sequester carbon dioxide when introduced into the soil. 

The biochar carbon credit market, although still in its early stages, is rapidly expanding, with prices showing a bullish trend. Over the past year, deals for smaller volumes of credits have closed above $500/mt, per DGB Group report. Other deals have begun to clear below $100/mt. 

Recent bids for biochar credits ranged from $134/mt to $145/mt, indicating growing interest and potential in this sector, with matching offers between $152/mt to $167/mt.

Scaling Up for Impact

The $19.5 million capital raise will enable NetZero to scale up its technology and deploy production sites at a larger scale in tropical regions. The company aims to remove over 5 million tonnes of CO2 from the atmosphere by 2030.

STOA’s investment in NetZero represents a significant milestone in the biochar space. STOA, established in 2017, focuses on infrastructure and energy investments in developing countries. 

Currently, NetZero operates two commercial-scale biochar plants in Cameroon and Brazil. Last month, it partnered with Swiss commodities trader Ecom Agroindustrial Corp. to produce biochar from coffee husks in Brazil, with an expected annual production of over 4,000 metric tons.

In Mexico, another biochar startup, The Next 150, is ramping up its production, aiming to capture 150,000 tons of CO2 equivalent. If that happens, it would be the largest biochar initiative in Mexico.

Global biochar production reaches at least 350,000 metric tonnes annually, representing a remarkable 91% growth rate over 2021 production levels. 

From an economic standpoint, revenues generated by biochar and equipment manufacturers surpassed $600 million in 2023. This shows a substantial growth rate of 97% between 2021 and 2023. More notably, projections indicate further revenue growth, expected to reach over $3 billion by 2025.

In terms of market size, a research shows that biochar could reach over $1,540 million in 2031 as seen below.

global biochar market size 2024-2031

NetZero has been recognized for its achievements. For instance, it won the Milestone Award in the XPRIZE Carbon Removal competition sponsored by the Musk Foundation. The startup was also certified as a carbon-removal project under the Puro Standard. 

The company’s biochar plants contribute to carbon removal efforts and have already supplied carbon removal credits to companies like Boston Consulting Group, though specific volumes and prices were not disclosed.

With Brazil being one of the world’s largest agricultural countries and committed to decarbonization, it represents a strategic market for NetZero and the company’s goal of leading the biochar carbon removal revolution. 

The post NetZero Raises Over $19M for Biochar Expansion in Brazil appeared first on Carbon Credits.

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The Strategic Case for Nature-Based Carbon Investments

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Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.

1. Define the sourcing problem before choosing a project

Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.

This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.

CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.

2. Develop nature-based carbon investments around the actual supply chain

The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?

Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.

Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.

The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.

3. Compare the proposal with other ways to protect supply

WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.

The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.

The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.

The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.

4. Establish what the carbon outcome could count toward

Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?

Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.

SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.

For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.

Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.

5. Build a financial case that survives weaker assumptions

Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.

Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.

Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.

A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.

6. Fund a pilot with a clear expansion decision

Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.

Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.

Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.

This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.

Discuss a sourcing opportunity with CCC

Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.

Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.

Sources

  1. Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
  2. World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
  3. Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
  4. United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
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How to buy plastic credits, and what to check before you do

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A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.

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Carbon Footprint

EU carbon credit claims after 27 September 2026

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EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.

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