Municipal Utility Signs 15-Year Biochar Supply Deal With Novocarbo

The municipal utility Stadtwerke Dessau has signed a 15-year heat offtake agreement with Novocarbo, a Hamburg-based biochar manufacturer, to supply renewable heat to the district heating network in Dessau-Roßlau. The agreement covers an annual supply of up to 13.5 gigawatt hours (GWh) of heat and ensures the economic and continuous operation of the facility over the contract period.

As part of the collaboration, Novocarbo plans to develop the Carbon Removal Park Dessau, where biogenic residues such as wood chips or fruit pits will be converted via pyrolysis into biochar and renewable heat. The project is based on the Biochar Carbon Removal (BCR) process, which produces both climate-friendly heat and a stable form of carbon that can be used for soil improvement or industrial applications.

Following approval by the supervisory board, the agreement was signed in the presence of Mayor Dr. Robert Reck, Stadtwerke CEO Dino Höll, and Novocarbo Managing Director Dr. Karl Reinhard Kolmsee. Commissioning of the facility is currently planned for no later than January 1, 2028.

The heat generated will be purchased by Fernwärmeversorgung GmbH Dessau and fed into the municipal district heating network, creating a reliable, fossil-reduced heat source for the region. Mayor Dr. Robert Reck stated that the agreement represents an important next step in developing the city’s heat supply toward climate neutrality, emphasizing the use of innovative technologies and regional resources as a signal for active climate protection at the local level.

Novocarbo, which positions itself as a pioneer in the trading of carbon removal certificates and a leader in Biochar Carbon Removal solutions in Europe, views the Dessau project as part of its broader strategy to offer heat-as-a-service partnerships to municipal utilities and industrial clients. The company’s technology enables the production of biochar, renewable energy, and carbon credits from biogenic waste streams.

The Carbon Removal Park Dessau will integrate heat production with carbon removal, forming a circular infrastructure approach where waste biomass is transformed into useful products while sequestering carbon. This model aligns with Novocarbo’s stated goal of empowering the transition to a net zero economy through its carbon products.