FS Register FRN 1029698
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13+ years specialist broking experience
Biochar & Carbon Removal Insurance Cover for Biochar Producers, Pyrolysis Plants & Carbon Removal Projects
Property, liability, business interruption and construction cover for UK biochar producers, pyrolysis and gasification plants, enhanced rock weathering operators and other carbon removal projects selling into the voluntary carbon market.
Biochar and carbon removal insurance covers businesses that take carbon out of the atmosphere and store it, most commonly by heating biomass in a low-oxygen kiln or reactor to make biochar. These plants need property cover for the reactor and buildings, business interruption, employers' and public liability, products liability for biochar sold to farmers and other buyers, and environmental impairment cover. Projects still being built need contract works and delay in start-up cover. Insurers treat pyrolysis as a heat and fire risk: the process produces combustible gases, hot char that can reignite, and fine dust that can self-heat in storage. They also look at feedstock, permits, operator experience and the technology provider's track record. Because many projects are new, a clear technical presentation makes a real difference to whether insurers will quote.
Key facts at a glance
- Fire is the main risk. Hot char, syngas and combustible dust all need careful control.
- Biochar can self-heat. Stored char can smoulder and reignite if not quenched and cooled properly.
- Feedstock affects cover. Clean wood, waste wood and sewage sludge are underwritten differently.
- Products liability applies. Biochar sold to farms and growers carries a products exposure.
- New technology needs explaining. Insurers want data on the reactor, the supplier and the operating record.
Who needs biochar and carbon removal insurance?
We arrange cover for businesses across the carbon removal chain, from development to operation.
- Biochar producers. Operating pyrolysis kilns and reactors. See biochar production plant insurance.
- Pyrolysis and gasification plants. Making char, heat, power or oil from biomass. See pyrolysis plant fire insurance.
- Project developers. Building new carbon removal facilities. See carbon removal project construction insurance.
- Enhanced rock weathering operators. Spreading crushed rock on farmland.
- Farms and estates. Producing biochar on site from their own wood or crop waste.
- Technology suppliers. Designing and supplying reactors to others.
What does biochar insurance cover?
A biochar programme looks much like other process and energy risks, with extra attention on fire and products.
| Cover | What it protects | Watch out for |
|---|---|---|
| Property damage | Reactor, buildings, feedstock and biochar stock | Fire protection conditions |
| Machinery breakdown | Reactors, dryers, conveyors and control systems | Prototype exclusions |
| Business interruption | Lost revenue from biochar, heat and carbon credits | Credits may need specific wording |
| Public and products liability | Injury, damage and biochar sold to buyers | Contaminated feedstock |
| Environmental impairment | Pollution of air, land and water | Gradual pollution exclusions |
| Employers' liability | Injuries to staff | Burns and dust exposure |
| Contract works and DSU | The build and delayed revenue | Commissioning periods |
Why do insurers see pyrolysis as a fire risk?
Pyrolysis heats biomass to several hundred degrees with little oxygen. That makes combustible gas, and it leaves char that is hot, dusty and keen to catch light when it meets air.
Most losses at biomass and char plants start in the same few places: dryers, feed systems, discharge points and storage. Fine biochar dust can also build up on surfaces and in ducts, adding to the risk of fire and dust explosion. Insurers will look at how char is quenched, how long it is cooled before storage, how dust is managed and what detection and suppression are in place.
Biochar that hasn't been fully cooled can smoulder for days in a heap or bag before it flares up. Insurers want to see temperature checks and quenching before storage.
Can carbon credit revenue be insured?
Often, yes, but it needs thought. If a fire stops production, you may lose carbon credit sales as well as biochar and heat revenue.
Business interruption cover can include credit revenue if it is declared and the basis of settlement is agreed. Delivery risk under offtake contracts, or a registry refusing to issue credits, is a different matter and usually falls outside a standard property policy. Specialist carbon credit insurance does exist for some of these risks, and we can talk through the options.
What do insurers ask about a biochar project?
- Reactor type, supplier and number of units worldwide
- Feedstock type, source and quality controls
- Throughput, operating hours and staffing
- Quenching, cooling and storage arrangements
- Fire detection, suppression and dust control
- Environmental permit or exemption held
- Carbon registry, offtake contracts and revenue mix
Plants that also use digestion or waste processing may also need our anaerobic digestion insurance or waste and recycling insurance.
Frequently asked questions
Cover for businesses that make biochar by pyrolysis, including property, liability, business interruption and environmental risks.
It is a heat process, so fire is the main concern. Good quenching, cooling and dust control make a big difference.
Lost credit income after insured damage can often be included in business interruption cover if declared.
Yes, if you sell biochar to farms, growers or other buyers.
Yes. Clean virgin wood is viewed very differently from waste wood or sludge.
Yes, though insurers will want information on the supplier and operating history.
It is strongly recommended, particularly for plants handling waste feedstocks.
It can be, with liability and products cover arranged around the spreading operations.
Sometimes, but larger units usually need dedicated cover.
Contract works, delay in start-up and third-party liability cover the build.
It must be disclosed, but cover can still often be found.
Allow a few weeks for a new technology, less for established plants.
Related guides from Miller & Partner
Miller & Partner Limited (FRN 1029698) is an Appointed Representative of Gauntlet Risk Management Ltd (FRN 308081), which is authorised and regulated by the Financial Conduct Authority. Miller & Partner Limited is registered in England and Wales (company number 16206282) and trades from Vivian House, Roman Bridge Close, Mumbles, Swansea SA3 5BG. This page is general information, not a personal recommendation or an offer of cover. Cover is subject to insurer acceptance and the full terms, conditions and exclusions of the policy issued.
John was very helpful in an area where other brokers could not find policies that met the needs of my business. Quick responses and always friendly!
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MEET THE Director
Hey, I'm John!
I started Miller & Partner with the aim to bring back personable, approachable broking to UK businesses who were tired of large corporate brokers and feeling like they were just another number.
I have built this brokerage up with no pushy sales techniques or big business tactics, just honest, approachable and professional relationships with my clients.
Over 13 years experience in business insurance
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Office: Vivian House, Roman Bridge Close, Mumbles, Swansea, SA3 5BG
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