Biochar Production Business Plan: Dominican Republic (2025–2030)
A comprehensive business plan for a biochar production operation in the Dominican Republic, utilizing coconut husks to produce biochar, bio-oil, and syngas with additional carbon credit revenue.
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Executive Summary
This business plan outlines a biochar production operation in the Dominican Republic, utilizing coconut husks as feedstock to produce biochar, bio-oil, and syngas, with additional revenue from carbon credits. The operation starts with a 1 tph (tons per hour) Spray machine in 2025, scaling to add one 15 tph Spray machine annually from 2026 to 2030.
The plan leverages U.S.-made equipment to meet investor requirements, employs high-wage U.S./DR engineers and cost-effective local labor, and achieves a cumulative net cash flow of $377.85 million by 2030 after $142.4 million in CAPEX and $62.25 million in OPEX.
Business Overview
Location & Feedstock
  • Dominican Republic
  • Coconut husks via DR Exclusive Contract with Optimise LLC ($40/ton)
Production
  • Biochar (6,300 tons in 2025, 94,500 tons/year per 15 tph machine for 2026–2030)
  • Bio-oil (10% of biochar output)
  • Syngas (0.5 MWh/ton feedstock)
Operation
  • 21 hours/day
  • 10 months/year
  • Equipment: Spray USA-made machines (1 tph: $2 million, 15 tph: $32 million each)
Revenue Streams
Biochar: $300/ton (wholesale)
Carbon Credits: 1.9 tons CO2/ton biochar, $69.50/ton CO2 in 2025, increasing 5% annually
Bio-oil: $100/ton
Syngas: $50/MWh
Financial Goal: Achieve positive net cash flow through efficient operations and diversified revenue.
Market & Competitive Analysis
Agricultural Biochar Market
Agricultural-grade biochar is in demand for soil enhancement in the Dominican Republic and export markets. Wholesale price set at $300/ton based on regional market data.
Carbon Credits
Growing global demand for carbon sequestration, with biochar certified via Puro.earth or similar, yielding 1.9 tons CO2/ton biochar at $69.50/ton CO2 (2025), adjusted upward annually.
Byproducts
  • Bio-oil: Used for industrial applications, priced at $100/ton.
  • Syngas: Sold for local energy use at $50/MWh.
Competitive Advantage
Local feedstock availability, U.S.-made equipment for reliability, and carbon credit revenue enhance profitability.
Operational Plan
1
2025 (Pilot)
Deploy 1 tph Spray machine, producing 6,300 tons biochar, 630 tons bio-oil, 3,150 MWh syngas.
2
2026–2030 (Expansion)
Add one 15 tph machine annually, scaling to 75 tph by 2030 (472,500 tons biochar, 47,250 tons bio-oil, 236,250 MWh syngas).
Feedstock
Sourced locally at $40/ton, processed to 2 mm for pyrolysis.
Labor
Engineers (U.S./DR)
2 production, 1 maintenance, 1 automation, 1 carbon credit specialist in 2025 ($200,000/year, $100,000/year for carbon specialist); scales to 6, 3, 3, 3 for 2026–2030.
Local
10 operators ($3,000/year), 2 administrative ($10,000/year), 2 logistics ($5,000/year) in 2025; scales to 30, 4, 6 for 2026–2030.
Infrastructure
Land acquisition (2025), facility construction, utilities, and roads for expansion (2026–2030).
Biochar Sales $1,890,000 $28,350,000 $56,700,000 $85,050,000 $113,400,000
Carbon Credit Revenue
Carbon Credits $828,450 $12,426,750 $24,853,500 $37,280,250 $49,707,000
Capital Expenditures (CAPEX)
Total CAPEX: $142.4 million over 2025–2030
1
Equipment
  • $2 million (1 tph, 2025)
  • $32 million per 15 tph machine (2026–2030)
2
Installation
Site preparation, machine setup, electrical integration
3
Ancillary Equipment
Shredders, conveyors, cooling/collection systems, waste gas treatment, bio-oil/syngas systems, packaging, automation
4
Infrastructure
Land, buildings, utilities, roads
5
Permits/Compliance
Environmental, building, carbon credit certification
Operating Expenditures (OPEX)
Total OPEX: $62.25 million over 2025–2030
Feedstock
$40/ton, matching biochar output
Labor
U.S./DR engineers ($200,000/year, $100,000/year for carbon specialists), local staff ($3,000–$10,000/year)
Utilities
Electricity ($15,000 for 1 tph, $225,000/year for 15 tph), water, fuel
Maintenance
Machine ($8,000 for 1 tph, $120,000/year for 15 tph), ancillary equipment, facility
Transportation
$2/ton for feedstock, biochar, bio-oil; syngas utilization costs
Other Costs
Packaging ($1/ton), insurance/licensing, miscellaneous ($3,000 for 1 tph, $45,000/year for 15 tph)
Net Cash Flow Projections
Revenue
Total Revenue: $711.43 million over 2025–2030
$300
Biochar Price
Per ton (wholesale)
1.9
Carbon Credit Yield
Tons CO2 per ton biochar
$69.50
Carbon Credit Price
Per ton CO2 in 2025, increasing 5% annually
$100
Bio-oil Price
Per ton
$50
Syngas Price
Per MWh
Profitability
$142.4M
Total CAPEX
Capital expenditures over 2025–2030
$62.25M
Total OPEX
Operating expenditures over 2025–2030
$711.43M
Total Revenue
Revenue over 2025–2030
$377.85M
Net Cash Flow
Cumulative over 2025–2030
Risk Analysis & Conclusion
Risk Analysis
Market Risks
Fluctuations in biochar or carbon credit prices could impact revenue.
Operational Risks
Supply chain disruptions for feedstock or equipment maintenance.
Regulatory Risks
Changes in environmental or carbon credit certification requirements.
Mitigation
Diversified revenue streams, long-term feedstock contracts, and robust compliance processes.
Conclusion
This biochar production operation in the Dominican Republic is a financially viable venture, leveraging local coconut husks and U.S.-made Spray equipment to produce biochar, bio-oil, and syngas, with significant carbon credit revenue.
With $204.65 million invested over 2025–2030, the project yields a cumulative net cash flow of $377.85 million, driven by efficient operations and a favorable OPEX-to-CAPEX ratio.
Financial Details
Detailed breakdown of CAPEX, OPEX, production, revenue, and financial projections for 2025-2030.
Ancillary Equipment CAPEX (2025-2030)
Material Handling
Conveyor Systems: $100,000 annually from 2026-2030 for belt/screw conveyors for material handling.
Processing Systems
  • Cooling Systems: $150,000 annually from 2026-2030 for biochar cooling systems.
  • Collection Systems: $50,000 annually from 2026-2030 for biochar collection and storage.
Byproduct Management
  • Waste Gas Treatment: $150,000 annually from 2026-2030 for scrubbers for emission control.
  • Bio-oil Collection System: $100,000 annually from 2026-2030 for capturing bio-oil byproduct.
  • Syngas Handling System: $100,000 annually from 2026-2030 for capturing syngas byproduct.
Finishing & Control
  • Packaging Equipment: $100,000 annually from 2026-2030 for biochar bagging.
  • Automation/Control Systems: $200,000 annually from 2026-2030 for PLC and monitoring systems.
Infrastructure and Permits CAPEX (2025-2030)
Infrastructure Investments
Our infrastructure investments include land acquisition in 2025 followed by annual facility construction and improvements from 2026-2030. All necessary permits and certifications are budgeted to ensure regulatory compliance and carbon credit eligibility.
Land & Buildings
  • $500,000 for land acquisition in 2025
  • $1,000,000 annually for facility construction (2026-2030)
Site Infrastructure
  • $200,000 annually for utilities installation (2026-2030)
  • $100,000 annually for road improvements (2026-2030)
Regulatory Compliance
  • $10,000-$20,000 annually for environmental permits
  • $5,000-$10,000 annually for building permits
  • $5,000-$10,000 annually for carbon credit certification
Total CAPEX Summary

Cumulative CAPEX: $142,400,000 over the 6-year period
CAPEX Breakdown by Category
Equipment
Primary Spray machines represent the largest capital investment
Ancillary Systems
Supporting equipment for processing and byproduct handling
Infrastructure
Land, facilities, utilities and transportation access
Permits & Compliance
Regulatory approvals and certification costs
$2,570,000 $34,995,000 $34,945,000 $34,945,000 $34,945,000 $34,945,000 Cumulative: $142,400,000
Operational Expenses - Feedstock & Labor (2025-2030)
Feedstock
Coconut Husks: $252,000 (2025) scaling to $18,900,000 (2030)
6,300 tons (2025), 94,500 tons/year (2026-2030) at $40/ton
Engineering Staff
  • Production Engineers: $400,000 (2025) to $6,000,000 (2030)
  • Maintenance Engineers: $200,000 (2025) to $3,000,000 (2030)
  • Automation Specialists: $200,000 (2025) to $3,000,000 (2030)
  • Carbon Credit Specialists: $100,000 (2025) to $1,500,000 (2030)
Local Staff
  • Operators: $30,000 (2025) to $450,000 (2030)
  • Administrative Staff: $20,000 (2025) to $200,000 (2030)
  • Logistics Staff: $10,000 (2025) to $150,000 (2030)
Operational Expenses - Transport & Other (2025-2030)
Transportation & Packaging Costs
Transportation Costs
  • Feedstock Transport: $12,600 (2025) to $945,000 (2030)
  • Biochar Distribution: $12,600 (2025) to $945,000 (2030)
  • Bio-oil Transport: $1,260 (2025) to $94,500 (2030)
  • Syngas Utilization: $1,260 (2025) to $94,500 (2030)
Packaging Expenses
  • Biochar Bags and Materials: $6,300 (2025) to $472,500 (2030)
  • Bio-oil Containers: $630 (2025) to $47,250 (2030)
Insurance & Compliance
  • Insurance: $5,000 (2025) to $30,000 (2030)
  • Licensing Fees: $2,000 (2025) to $12,000 (2030)
  • Carbon Credit Verification: $5,000 (2025) to $30,000 (2030)
Total OPEX and Production Output (2025-2030)
$1.26M
2025 OPEX
Initial pilot year operational expenses
$7.55M
2026 OPEX
First full-scale production year
$35.95M
2030 OPEX
Final year projected operational expenses
$62.25M
Cumulative Total
6-year operational expenses
Production Output Summary

Production is based on 1 tph (2025), 15 tph/year (2026-2030), operating 21 hr/day, 10 months per year. Bio-oil output is 10% of biochar output, and syngas output is 0.5 MWh/ton of feedstock.
Revenue Projections (2025-2030)
Biochar Sales
$1,890,000 (2025) to $141,750,000 (2030)
At $300/ton wholesale price
Carbon Credits
$828,450 (2025) to $62,133,750 (2030)
1.9 tons CO2/ton biochar at $69.50/ton CO2
Bio-oil Sales
$63,000 (2025) to $4,725,000 (2030)
At $100/ton
Syngas Sales
$157,500 (2025) to $11,812,500 (2030)
At $50/MWh
Financial Summary (2025-2030)
Investment Highlights & Cumulative Performance
Cumulative Net Cash Flow
Total projected net cash flow by end of 2030
$377.85M
Net Cash Flow
Cumulative through 2030
$711.43M
Revenue
Total projected revenue
$142.4M
CAPEX
Total capital expenditure
$62.25M
OPEX
Total operational costs
Investment Highlights
The project shows strong financial performance with positive cash flow from year one and significant growth in subsequent years. By 2030, the annual net cash flow reaches $149.5M with a cumulative net cash flow of $377.85M.
Annual Financial Performance

This biochar production business demonstrates exceptional financial viability with strong returns on investment and positive cash flow from the first year of operations.