Grain Ecosystem

In our latest webinar, Grain Ecosystem Co-Founder and CCO Jason Dodier joined Justin McNeal, Founder and CEO of Dakota Biochar, live from Rockerville in the Black Hills of South Dakota. Instead of a slide presentation, viewers were taken inside a working biochar facility, including a live reactor startup demonstrating the pyrolysis process in real time. 

This session offered a rare look at operational biochar infrastructure: from forest residues to finished biochar, from feedstock logistics to carbon revenue and biomass energy recovery. 

Watch the full webinar recording here: 

Starting With the Problem: Forest Residues, Wildfire Risk, and Degraded Soils 

Justin began with the setting. The Black Hills National Forest spans 1.2 million acres. Logging operations extract the marketable timber: the trunks that become lumber. But what remains behind has little to no market value: tree tops, needles, bark, and non-commercial wood residues.  

These materials accumulate in slash piles across the forest. With no economically viable outlet, the Forest Service often burns them during limited winter windows when conditions allow controlled fires. 

The result is a growing waste wood problem and elevated wildfire risk. In the Black Hills alone, Justin estimates that more than half a million metric tons of this material are currently sitting unmanaged in the forest. 

At the same time, another challenge exists across the state. In eastern South Dakota, there are approximately 24.2 million acres of farmland. According to USDA data, roughly 20% of that acreage is considered non-farmable due to alkaline, salt-affected soils; a condition linked in part to decades of overfertilization. 

Two separate problems, one potential solution. Dakota Biochar began with those two missions: address the growing waste wood problem (including reducing wildfire risk) and improve the health of degraded soils. In Justin’s words, “we’re trying to heal the earth.” 

This is the foundation of many successful waste-to-value infrastructure projects: identifying a stranded or negative-value feedstock and designing a system around it that converts it into long-term environmental and economic value. 

You’ve Got the Feedstock. Now What? 

Standing on-site, Justin showed the raw material as it arrives straight from the forest. The residues are ground down and processed. One of the early operational lessons, he explained, involved screening. 

Finer material (particles under one inch) created slag issues inside the firebox. Over time, the team realized that removing those fines before feeding the reactor significantly improved performance. The solution was the installation of a trommel screen to separate out smaller particles prior to processing. It was a hard-earned operational insight that could save future developers significant capital and time. 

From there, Justin walked viewers through the facility layout. The system includes a dedicated fuel bin for heat generation and a separate feed bin for biomass input. The material moves into two tandem reactors (the first such configuration globally) where the pyrolysis process takes place. From there, the converted biochar exits through the discharge system and into storage as finished product. 

Later came the highlight of the session: firing up the reactor live. 

Dakota Biochar Pyrolysis 

Fuel was ignited in the furnace, and the refractory-lined drum began to heat. The rotating chamber functions like a massive, high-temperature cylinder. As the biomass tumbles through the drum in a low-oxygen environment, thermal decomposition converts it into stable, carbon-rich biochar. 

Dakota Biochar’s current site processes more than 8,000 tons of biomass annually. Yet Justin described the facility as a “market demonstration phase.” 

The longer-term vision is significantly larger: scaling to approximately 100,000 tons per year at a future site. That level of throughput would materially impact both forest residue management and soil carbon applications in the region. 

But scaling only works if the economics work. That realization led the conversation into one of the most critical parts of the session: how to structure a biochar project so it is financially durable, not just technically operational. 

Making the Numbers Work: Three Revenue Streams 

Justin emphasized that biochar infrastructure cannot rely on a single revenue source. Durable projects stack value. In his words, you need three streams of revenue:  

Biochar sales alone may not support the capital investment. Carbon credits strengthen the business case but cannot compensate for weak fundamentals. Energy recovery improves efficiency and reduces operational costs. Together, these streams create resilience. 

At Dakota Biochar, heat from the reactors is captured and converted into electricity. The system covers its own parasitic load, supplements power for the co-located sawmill, and provides excess energy to a Bitcoin mining operation. The team is also exploring further heat utilization for industrial users such as distillers and asphalt manufacturers. Nothing is wasted if it can be utilized. 

On the carbon side, Justin emphasized the importance of having the right partner. Dakota Biochar works with Grain Ecosystem to ensure the project aligns with an approved biochar carbon methodology and can generate verified carbon credits. As he noted during the webinar, having a specialized team handle carbon credit structuring, monitoring, and verification removes a significant operational burden and allows his team to stay focused on building and running the facility. In his words: “We chose to go with Grain because we thought they were the best in the industry, and they’ve been proving that. (…) That’s one less thing on my plate that I ever have to worry about, the carbon credit certification.” 

Municipal Engagement and Local Infrastructure 

The webinar also explored Dakota Biochar’s collaboration with the City of Rapid City. 

The proposal is straightforward: divert green waste from landfills, convert it into biochar, generate power from the heat, and potentially supply activated carbon for water filtration. 

Justin emphasized that engagement with municipalities begins with clarity: define the problem, present a practical solution, and demonstrate that you can execute. As he put it: “You really got to define your why. Why are you doing this? Develop that story. It’s the story that people can buy into, understand, or want to get behind.” 

But vision alone is not enough; credibility matters. “They have to know you’re real,” Justin pointed out. For Dakota Biochar, having an operating facility made that credibility tangible. What started as an idea quickly became proof. “Believe it or not, this was just an idea in all our heads last July, and we were operational in December,” he shared. Execution builds trust.  

His advice to developers was characteristically direct: “You just got to get started. You just got to get going. Jump off cliffs, build wings on the way down.” 

For Justin, momentum is part of the strategy. Define the problem, commit to solving it, and move. 

Throughout the webinar, Justin made one thing clear: biochar projects are not built alone. 

From feedstock logistics to reactor operations, carbon certification, and sales, execution depends on surrounding yourself with the right people. As he put it, his role is “the ringmaster of the circus.” The key is building a team that believes in the mission and knows how to execute.  

That extends beyond internal staff. Strategic partnerships are essential, from technology providers and academic institutions to carbon specialists and municipal collaborators. Trying to manage everything in-house can slow progress and dilute focus. Delegating complexity, especially in areas like carbon credit certification, allows operators to concentrate on what matters most: running and scaling the facility. 

Market Opportunity: Agriculture and Regenerative Farming 

Producing biochar is only half the equation: you must also build the market. Dakota Biochar works with agronomists and universities to validate soil applications and generate data. On the demand side, the opportunity is significant. South Dakota alone has over 24 million acres of farmland, and a meaningful portion suffers from soil degradation. 

Federal programs are also accelerating adoption. Through USDA regenerative farming initiatives and NRCS programs such as EQIP (including Code 336), farmers can receive support for implementing soil health practices that include biochar. 

 “The market is there,” Justin emphasized. Even a single large farm can absorb the output of a facility like Rockerville’s.  

If there was one recurring theme throughout the discussion, it was feedstock security. Without locked-in feedstock, biochar projects struggle. 

Feedstock is the currency of the business. It determines throughput, revenue stability, and investor confidence. 

Dakota Biochar benefits from proximity to the forest and collaboration with logging operations. For developers elsewhere, securing long-term feedstock agreements should be the first priority. 

As Jason underscored during the session, more than a hundred conversations in this space point to the same conclusion: projects fail when feedstock is uncertain. 

Capital and Building With What You Have 

The session closed with a candid discussion about capital formation. Dakota Biochar did not begin with unlimited funding. Equipment was sourced creatively, including acquiring underutilized machinery from another municipality at a favorable price. 

Justin’s approach was pragmatic: identify 90% of the reasons someone might say “no,” solve those first, and then move forward. 

Programs and Resources Referenced During the Webinar 

During the session, Jason mentioned that we would compile a list of the programs and policy tools referenced by Justin that may support producers, developers, and municipalities exploring biochar and waste-to-value projects. 

Below is a summary of those programs and pathways: 

1. NRCS EQIP (Environmental Quality Incentives Program) 

Administered by the USDA’s Natural Resources Conservation Service (NRCS), EQIP provides financial and technical assistance to producers implementing conservation practices. 

Biochar may qualify under several practice codes, including: 

EQIP can help offset the cost of biochar application for farmers adopting soil health practices. 

2. NRCS Conservation Stewardship Program (CSP) 

CSP supports producers who maintain and improve existing conservation systems and adopt additional conservation activities. 

In some cases, biochar applications can be layered within broader soil health or nutrient management strategies. 

3. USDA Regenerative Agriculture Funding 

Justin referenced recent USDA allocations toward regenerative farming and soil health initiatives. These programs aim to: 

Biochar can play a role in qualifying conservation strategies when integrated appropriately. 

4. Municipal Green Waste Diversion Programs 

Dakota Biochar is working with the City of Rapid City to divert green waste from landfills. 

Cities often serve as early adopters for waste-to-value infrastructure. 

Jason mentioned the broader policy context around forest management and wildfire mitigation. Federal and state forest management initiatives can create opportunities for: 

These policies can indirectly support biochar feedstock development. 

To dive deeper into the policy landscape shaping biochar, watch our webinar “

,” featuring Maureen Walsh from the U.S. Biochar Initiative (USBI).

This webinar demonstrated something essential for the biochar sector: Commercial projects are operating today. They are processing real feedstock, generating real revenue, producing measurable carbon removal and addressing tangible local problems. 

Biochar is no longer a theoretical climate solution. It is infrastructure in motion.  

As Justin said: “Hopefully, this motivates or inspires you to get out there. The material exists. The need is there. We need many more people on board, across the country and around the world, solving this waste issue.” 

If you are developing a biochar project and want to assess feedstock security, carbon revenue potential, or overall project viability, Grain Ecosystem provides tools and advisory support to structure projects from day one. Explore our platform or contact our team to begin. 

A real-world look at commercial biochar production, carbon credits, and waste-to-value infrastructure in action. 

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<p></p><p>In our latest webinar, Grain Ecosystem Co-Founder and CCO Jason Dodier joined Justin McNeal, Founder and CEO of Dakota Biochar, live from Rockerville in the Black Hills of South Dakota. Instead of a slide presentation, viewers were taken inside a working biochar facility, including a live reactor startup demonstrating the pyrolysis process in real time. </p><p>This session offered a rare look at operational biochar infrastructure: from forest residues to finished biochar, from feedstock logistics to carbon revenue and biomass energy recovery. </p><p>Watch the full webinar recording here: </p><p><iframe width="1265" height="502" src="https://www.youtube.com/embed/LYQBG4LGZgE" title="Forest Residues, Biochar, and Carbon Value: The Dakota Biochar Project | Webinar with Justin McNeal" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe> </p><p><a href="https://youtu.be/LYQBG4LGZgE" target="_blank" rel="noopener noreferrer"><em>(If the player isn’t visible, click to watch it directly on YouTube.)</em></a>    </p><h2>Starting With the Problem: Forest Residues, Wildfire Risk, and Degraded Soils </h2><p>Justin began with the setting. The Black Hills National Forest spans 1.2 million acres. Logging operations extract the marketable timber: the trunks that become lumber. But what remains behind has little to no market value: tree tops, needles, bark, and non-commercial wood residues.  </p><p>These materials accumulate in slash piles across the forest. With no economically viable outlet, the Forest Service often burns them during limited winter windows when conditions allow controlled fires. </p><p>The result is a growing waste wood problem and elevated wildfire risk. In the Black Hills alone, Justin estimates that more than half a million metric tons of this material are currently sitting unmanaged in the forest. </p><p>At the same time, another challenge exists across the state. In eastern South Dakota, there are approximately 24.2 million acres of farmland. According to USDA data, roughly 20% of that acreage is considered non-farmable due to alkaline, salt-affected soils; a condition linked in part to decades of overfertilization. </p><p>Two separate problems, one potential solution. Dakota Biochar began with those two missions: address the growing waste wood problem (including reducing wildfire risk) and improve the health of degraded soils. In Justin’s words, “we’re trying to heal the earth.” </p><p>This is the foundation of many successful waste-to-value infrastructure projects: identifying a stranded or negative-value feedstock and designing a system around it that converts it into long-term environmental and economic value. </p><h2>You’ve Got the Feedstock. Now What? </h2><p>Standing on-site, Justin showed the raw material as it arrives straight from the forest. The residues are ground down and processed. One of the early operational lessons, he explained, involved screening. </p><p>Finer material (particles under one inch) created slag issues inside the firebox. Over time, the team realized that removing those fines before feeding the reactor significantly improved performance. The solution was the installation of a trommel screen to separate out smaller particles prior to processing. It was a hard-earned operational insight that could save future developers significant capital and time. </p><p>From there, Justin walked viewers through the facility layout. The system includes a dedicated fuel bin for heat generation and a separate feed bin for biomass input. The material moves into two tandem reactors (the first such configuration globally) where the pyrolysis process takes place. From there, the converted biochar exits through the discharge system and into storage as finished product. </p><p>Later came the highlight of the session: firing up the reactor live. </p><img src="/media/DakotaBiocharPyrolysis.jpg" alt="DakotaBiocharPyrolysis.jpg" width="900"  height="500"/><p>Fuel was ignited in the furnace, and the refractory-lined drum began to heat. The rotating chamber functions like a massive, high-temperature cylinder. As the biomass tumbles through the drum in a low-oxygen environment, thermal decomposition converts it into stable, carbon-rich biochar. </p><h2>Market Demonstration and Scale Ahead </h2><p>Dakota Biochar’s current site processes more than 8,000 tons of biomass annually. Yet Justin described the facility as a “market demonstration phase.” </p><p>The longer-term vision is significantly larger: scaling to approximately 100,000 tons per year at a future site. That level of throughput would materially impact both forest residue management and soil carbon applications in the region. </p><p>But scaling only works if the economics work. That realization led the conversation into one of the most critical parts of the session: how to structure a biochar project so it is financially durable, not just technically operational. </p><h2>Making the Numbers Work: Three Revenue Streams </h2><p>Justin emphasized that biochar infrastructure cannot rely on a single revenue source. Durable projects stack value. In his words, you need three streams of revenue:  </p><p>1. Sale of biochar </p><p>2. Carbon credit revenue </p><p>3. Energy generation </p><p>Biochar sales alone may not support the capital investment. Carbon credits strengthen the business case but cannot compensate for weak fundamentals. Energy recovery improves efficiency and reduces operational costs. Together, these streams create resilience. </p><p>At Dakota Biochar, heat from the reactors is captured and converted into electricity. The system covers its own parasitic load, supplements power for the co-located sawmill, and provides excess energy to a Bitcoin mining operation. The team is also exploring further heat utilization for industrial users such as distillers and asphalt manufacturers. Nothing is wasted if it can be utilized. </p><p>On the carbon side, Justin emphasized the importance of having the right partner. Dakota Biochar works with Grain Ecosystem to ensure the project aligns with an approved biochar carbon methodology and can generate verified carbon credits. As he noted during the webinar, having a specialized team handle carbon credit structuring, monitoring, and verification removes a significant operational burden and allows his team to stay focused on building and running the facility. In his words: “We chose to go with Grain because we thought they were the best in the industry, and they’ve been proving that. (…) That’s one less thing on my plate that I ever have to worry about, the carbon credit certification.” </p><h2>Municipal Engagement and Local Infrastructure </h2><p>The webinar also explored Dakota Biochar’s collaboration with the City of Rapid City. </p><p>The proposal is straightforward: divert green waste from landfills, convert it into biochar, generate power from the heat, and potentially supply activated carbon for water filtration. </p><p>Justin emphasized that engagement with municipalities begins with clarity: define the problem, present a practical solution, and demonstrate that you can execute. As he put it: “You really got to define your why. Why are you doing this? Develop that story. It’s the story that people can buy into, understand, or want to get behind.” </p><p>But vision alone is not enough; credibility matters. “They have to know you’re real,” Justin pointed out. For Dakota Biochar, having an operating facility made that credibility tangible. What started as an idea quickly became proof. “Believe it or not, this was just an idea in all our heads last July, and we were operational in December,” he shared. Execution builds trust.  </p><p>His advice to developers was characteristically direct: “You just got to get started. You just got to get going. Jump off cliffs, build wings on the way down.” </p><p>For Justin, momentum is part of the strategy. Define the problem, commit to solving it, and move. </p><h2>The Right Team and the Right Partners </h2><p>Throughout the webinar, Justin made one thing clear: biochar projects are not built alone. </p><p>From feedstock logistics to reactor operations, carbon certification, and sales, execution depends on surrounding yourself with the right people. As he put it, his role is “the ringmaster of the circus.” The key is building a team that believes in the mission and knows how to execute.  </p><p>That extends beyond internal staff. Strategic partnerships are essential, from technology providers and academic institutions to carbon specialists and municipal collaborators. Trying to manage everything in-house can slow progress and dilute focus. Delegating complexity, especially in areas like carbon credit certification, allows operators to concentrate on what matters most: running and scaling the facility. </p><h2>Market Opportunity: Agriculture and Regenerative Farming </h2><p>Producing biochar is only half the equation: you must also build the market. Dakota Biochar works with agronomists and universities to validate soil applications and generate data. On the demand side, the opportunity is significant. South Dakota alone has over 24 million acres of farmland, and a meaningful portion suffers from soil degradation. </p><p>Federal programs are also accelerating adoption. Through USDA regenerative farming initiatives and NRCS programs such as EQIP (including Code 336), farmers can receive support for implementing soil health practices that include biochar. </p><p> “The market is there,” Justin emphasized. Even a single large farm can absorb the output of a facility like Rockerville’s.  </p><h2>Feedstock: The Non-Negotiable </h2><p>If there was one recurring theme throughout the discussion, it was feedstock security. Without locked-in feedstock, biochar projects struggle. </p><p>Feedstock is the currency of the business. It determines throughput, revenue stability, and investor confidence. </p><p>Dakota Biochar benefits from proximity to the forest and collaboration with logging operations. For developers elsewhere, securing long-term feedstock agreements should be the first priority. </p><p>As Jason underscored during the session, more than a hundred conversations in this space point to the same conclusion: projects fail when feedstock is uncertain. </p><h2>Capital and Building With What You Have </h2><p>The session closed with a candid discussion about capital formation. Dakota Biochar did not begin with unlimited funding. Equipment was sourced creatively, including acquiring underutilized machinery from another municipality at a favorable price. </p><p>Justin’s approach was pragmatic: identify 90% of the reasons someone might say “no,” solve those first, and then move forward. </p><h2>Programs and Resources Referenced During the Webinar </h2><p>During the session, Jason mentioned that we would compile a list of the programs and policy tools referenced by Justin that may support producers, developers, and municipalities exploring biochar and waste-to-value projects. </p><p>Below is a summary of those programs and pathways: </p><h3>1. NRCS EQIP (Environmental Quality Incentives Program) </h3><p>Administered by the USDA’s Natural Resources Conservation Service (NRCS), EQIP provides financial and technical assistance to producers implementing conservation practices. </p><p>Biochar may qualify under several practice codes, including: </p><ul class="bullet"><li value=1>Code 336 – Soil Carbon Amendment (Biochar) </li></ul><ul class="bullet"><li value=1>Additional conservation practices tied to soil health, nutrient management, and land remediation </li></ul><p>EQIP can help offset the cost of biochar application for farmers adopting soil health practices. </p><h3>2. NRCS Conservation Stewardship Program (CSP) </h3><p>CSP supports producers who maintain and improve existing conservation systems and adopt additional conservation activities. </p><p>In some cases, biochar applications can be layered within broader soil health or nutrient management strategies. </p><h3>3. USDA Regenerative Agriculture Funding </h3><p>Justin referenced recent USDA allocations toward regenerative farming and soil health initiatives. These programs aim to: </p><ul class="bullet"><li value=1>Improve soil carbon sequestration </li></ul><ul class="bullet"><li value=1>Support conservation practices </li></ul><ul class="bullet"><li value=1>Increase long-term farm resilience </li></ul><p>Biochar can play a role in qualifying conservation strategies when integrated appropriately. </p><h3>4. Municipal Green Waste Diversion Programs </h3><p>Dakota Biochar is working with the City of Rapid City to divert green waste from landfills. </p><p>Municipal partnerships can unlock: </p><ul class="bullet"><li value=1>Feedstock supply agreements </li></ul><ul class="bullet"><li value=1>Landfill diversion contracts </li></ul><ul class="bullet"><li value=1>Renewable energy integration </li></ul><ul class="bullet"><li value=1>Water treatment collaboration (activated carbon applications) </li></ul><p>Cities often serve as early adopters for waste-to-value infrastructure. </p><h3>5. Fix Our Forests Act  </h3><p>Jason mentioned the broader policy context around forest management and wildfire mitigation. Federal and state forest management initiatives can create opportunities for: </p><ul class="bullet"><li value=1>Forest residue removal contracts </li></ul><ul class="bullet"><li value=1>Biomass supply agreements </li></ul><ul class="bullet"><li value=1>Wildfire risk reduction programs </li></ul><p>These policies can indirectly support biochar feedstock development. </p><p>To dive deeper into the policy landscape shaping biochar, watch our webinar “<a href="https://grainecosystem.com/knowledge-hub/articles/691f75802e09739125056ef9" target="_blank" rel="noopener noreferrer">From Shutdown to Scale-Up: What Federal and State Policy Means for Biochar in 2026</a>,” featuring Maureen Walsh from the U.S. Biochar Initiative (USBI).</p><h2>Theory to Deployment </h2><p>This webinar demonstrated something essential for the biochar sector: Commercial projects are operating today. They are processing real feedstock, generating real revenue, producing measurable carbon removal and addressing tangible local problems. </p><p>Biochar is no longer a theoretical climate solution. It is infrastructure in motion.  </p><p>As Justin said: “Hopefully, this motivates or inspires you to get out there. The material exists. The need is there. We need many more people on board, across the country and around the world, solving this waste issue.” </p><p>If you are developing a biochar project and want to assess feedstock security, carbon revenue potential, or overall project viability, Grain Ecosystem provides tools and advisory support to structure projects from day one. Explore our platform or contact our team to begin. </p><h2> Watch all Grain Webinars  </h2><ul class="bullet"><li value=1><a href="https://grainecosystem.com/knowledge-hub/articles/696e590aa84d8497589109a9" target="_blank" rel="noopener noreferrer">Sustainability as a System, Not a Slogan</a> with Maisie Ganzler.</li><li value=2><a href="https://grainecosystem.com/knowledge-hub/articles/691f75802e09739125056ef9" target="_blank" rel="noopener noreferrer">From Shutdown to Scale-Up: What Federal and State Policy Means for Biochar in 2026</a> with Maureen Walsh. </li></ul><ul class="bullet"><li value=1><a href="https://grainecosystem.com/knowledge-hub/articles/691204e28d0fcf646bb45360" target="_blank" rel="noopener noreferrer">Carbon Removal Meets Compliance: Navigating the Legal Landscape for Biochar Projects</a> with Peter Mayer. </li></ul><ul class="bullet"><li value=1><a href="https://grainecosystem.com/knowledge-hub/articles/68e6a74f3933aa4c973a0716" target="_blank" rel="noopener noreferrer">Biochar in Bloom: Lessons from Okaw Valley Orchard</a> with Mike Mitchell.  </li></ul><ul class="bullet"><li value=1><a href="https://grainecosystem.com/knowledge-hub/articles/6883a7802492b585355e77ee" target="_blank" rel="noopener noreferrer">The Green Bridge: Non-Traditional Finance for Biochar</a> with Adam Fraser.  </li></ul><ul class="bullet"><li value=1><a href="https://grainecosystem.com/knowledge-hub/articles/67b75ae223e6759660f119ad" target="_blank" rel="noopener noreferrer">Advancing CDR: From Start-Up to Scale-Up</a> with Robert Höglund.  </li></ul><ul class="bullet"><li value=1><a href="https://grainecosystem.com/knowledge-hub/articles/6751f73e593a512d338ee036" target="_blank" rel="noopener noreferrer">Building Biochar Markets for Value & Scale: Webinar Recap</a> with Myles Grey and Bernardo Del Campo.  </li></ul><ul class="bullet"><li value=1><a href="https://grainecosystem.com/knowledge-hub/articles/67092f5e79685344119a953f" target="_blank" rel="noopener noreferrer">Dirt to Dollars. Unearthing the Science of Sustainable Investment</a> with Ryan Letourneau, Alicia Klepfer and Jason Dodier. </li></ul><p></p>

From the Black Hills, Live: What It Takes to Build a Real Biochar Project