Modular Pyrolysis, Massive Impact: Experts Predict Bio-Oil Will Beat the Cost Curve, Deliver durable <$200 CDR

Recent analysis from researchers at Iowa State University found that biomass-fed modular fast pyrolysis processing units paired with permanent bio-oil sequestration can drive significant climate impact at a low cost.

Key Takeaways

• Sub-$200/ton carbon removal is within reach: Sub-$200/ton carbon removal is achievable, and there are various operational opportunities to achieve $100/tCDR pricing over the long term.

• Charm’s modular, distributed system unlocks efficient scale without the downsides of centralized biomass processing infrastructure.

• Net-negative impact is rigorously modeled: 1.7–2.1 tCO₂e removed per tonne of bio-oil, with lifecycle emissions fully accounted for.

• Charm’s Colorado pyrolysis facility has been running continuously since August 2024, proving this model is ready for real-world deployment.

Techno-Economic Analysis enables technology comparison

In order to deliver carbon removal, innovations must have a technological path to success and an economic path to competing in the marketplace. The wide range of emerging carbon removal technologies can make it challenging to compare one approach to another. That’s why experts use the Marginal Abatement Cost of a ton of CO2 equivalent (MAC, in $/tCO2e) in order to compare costs across a wide range of technical approaches.

Many small systems outcompete a few large ones

Some carbon removal technologies seek to achieve competitive pricing with economies of scale–relying on large up-front investments in high-capacity facilities to deliver cost savings over time. However, experts and investors are increasingly focusing on technologies that can provide durable carbon removal using approaches that can be de-risked by rapidly iterating and incorporating technical and market learnings into their strategy. This month, Energy Conversion and Management published a new peer-reviewed study of an approach that leverages economies of numbers–the well-honed strategy used to decrease the unit costs of EVs, solar panels, and many other now-ubiquitous technologies.  

In Enhancing Carbon Removal via Scalable On-Site Pyrolysis and Well-Plugging Systems, experts in modeling and Techno-Economic Analysis analyzed a modular approach to Biomass Carbon Removal and Storage (BiCRS), similar to Charm Industrial’s approach to carbon removal. They found that rapid learnings across a fleet of small, modular units can beat the cost-curve of large systems, revealing lower marginal abatement costs from the start, and continuing to deliver below the cost of large-capacity systems at scale. 

This figure shows that small, 10 ton per day (tpd) machines maintain lower costs than large scale pyrolysis (250 tpd units) or either Low Temperature Direct Air Capture (LT DAC) or High Temperature Direct Air Capture (HT DAC), regardless of the Learning Rate (LR) applied above about 1.3Mtpy

Getting to Net Negative: Know Your Costs

A team of researchers at Iowa State University* modeled a bio-oil injection Biomass Carbon Removal and Storage (BiCRS) system for technical and economic scalability—they included costs through the entire process, starting with feedstock aggregation, biomass processing through fast pyrolysis, bio-oil injection into deep geological storage via oil wells, as well as transportation and operational costs. The modeling incorporated both emissions and costs of each step of the process, delivering a clear and informed estimate of how these systems could deliver initially and after technological learnings were incorporated into the process. 

Image Caption: Process modeled in Enhancing Carbon Removal via Scalable On-Site Pyrolysis and Well-Plugging SystemsThe team at Iowa State University assessed a lifecycle analysis for every dry ton of corn stover converted to bio-oil and sequestered approximately 0.77 metric tonnes of CO₂e are locked away in bio-oil, and another 0.20 tonnes are stabilized in biochar. That’s almost one tonne of carbon dioxide equivalent removed for every tonne of plant waste processed—more than enough to offset all upstream emissions from equipment, energy, and transport.

Image Caption: Process with LCA detailsIn carbon accounting terms, after considering emissions associated with operations and biomass, CO2 removals per tonne of sequestered bio-oil can be as high as 1.82 tCO2e/t bio-oil (about 80% from bio-oil, and 20% from char). 

That means for every tonne of bio-oil put underground, 1.82 tonnes of CO₂ are effectively removed from the atmosphere!

With manufacturing learning curves and the efficiencies of modular deployment accounted for, these experts project costs dropping to less than $100/tonne—a price point once considered out of reach for engineered carbon removal.

Model, meet Makers

The team at Iowa State produced a carefully researched model and assessment of what is a very novel pathway – small pyrolysis systems, optimized for their production of liquids, deployed in a modular fashion to utilize a range of biomass and geologic storage options. While each of these novel treatments has been researched, the Iowa State team was the first to publish a peer-reviewed assessment of the entire system. 

Here at Charm, we have carefully developed our own models that enable us to understand the economics and carbon-omics of our own version of a mobile biomass processing and bio-oil injection system. This allows us to understand where we can reduce costs, and to clearly see which processes are costing us the most emissions. Our product is the net removal we put underground, so we have a strong incentive to get that carbon underground using the fewest emissions possible. Getting this model right is crucial to making informed business decisions, and for ensuring we’re keeping laser focused on the levers that matter for the greatest climate impact. 

Comparing TEA research findings to Charm’s internal TEA

The team at Iowa State produced a nuanced model of a range of scenarios, providing invaluable insight into how bio-oil pyrolysis and well-plugging systems might operate initially and once the technology had matured. This assessment provides a tool for understanding the impacts of various feedstocks, which is helpful when evaluating where a system might be located. Finally, the study confirms this distributed model is economically favorable compared to centralized CDR models.

At Charm, we were pleased to find that our conclusions were aligned with those found in the paper. This affirms we’re on the right track and validates our path to gigaton-scale impact. And it shows that the models from ISU are well adapted to the realities of operating these systems. 

Modular processing unlocks savings and is already delivering

Where many carbon removal approaches aim for mega-scale plants, the approach to bio-oil sequestration flips the script. Rather than think about immense industrial-scale factories, Charm takes a modular approach with lower incremental capex, and dispatches machines to areas of abundant biomass and injection wells. 

By using mobile pyrolyzers deployed near the source of biomass, we eliminate the costly logistics of transporting bulky agricultural residue long distances. Each small unit processes about 10 tons of dry biomass per day and sends bio-oil to centralized terminals for storage and eventual injection. This setup avoids siting bottlenecks and enables us to achieve efficiencies by manufacturing machines, rather than building ever-larger plants. Charm can bring smaller machines online to meet demand, and is not hampered by large initial startup costs for megascale facilities.

And it’s working: our Charm Colorado production facility has been running continuously since August 2024 (you can watch the buildout on CharmTV), providing critical technical feedback while removing real carbon from the atmosphere.

Charm’s system doesn’t just remove CO₂. It does so in a way that’s measurable, durable, and scientifically rigorous. Models are great, but receipts are better; you can check out the emissions and net removals for each ton we deliver online at https://charmindustrial.com/ledger! 

Beyond the Study

The peer review process confirms what we’ve long believed about Charm’s pathway, and furthers our commitment to scaling with transparency and scientific rigor. Transparency matters—for buyers, regulators, and policymakers who want confidence that carbon is really being removed, and not just relocated on paper.

The study authors note that bio-oil sequestration and other BiCRS approaches remain underrepresented in integrated assessment models and policy frameworks like the 45Q tax credit, which overlook sequestration pathways like bio-oil injection that can have scalable climate benefits. This analysis provides important data needed to close that gap.

We’re Just Getting Started

If you’re looking for a way to get your hands dirty scaling climate tech, we’re hiring:

Join the team.

Gigatons or bust.

* A note on Charm’s involvement in the study: Charm provided partial funding for the research and provided Charm’s operational and financial data for analysis. We’re proud to be able to support novel research in the field and had no editorial control over the research outcomes or conclusions.