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The hazelnut shell supply looked promising at first glance, with 28,000 tonnes per year within immediate reach and regional scaling potential across Azerbaijan, Turkey, and Georgia reaching 700,000 tonnes annually. That volume could support 25 production units and generate meaningful carbon removal at scale. But the details revealed constraints that would shape any investment decision. Hazelnut shells arrive seasonally and require year-round storage, while local furniture makers and charcoal producers already compete for the same feedstock. Energy offtake opportunities in Azerbaijan are limited, and we flagged leakage risks that could undermine the carbon removal value if supply tightens and shells need to be transported from distant suppliers or imported during low-supply months.
On the technology side, we identified 45 pyrolysis suppliers globally and narrowed the field to 13 viable candidates, benchmarking each on CAPEX, OPEX, throughput, yield, energy efficiency, references, reliability, suitability for hazelnut shells, operating hours, and autothermal performance. This gave SOCAR a clear view of investment requirements and supplier trade-offs without the noise of unvetted options.
We also mapped potential markets for the biochar itself, finding that mine soil remediation and agricultural soil improvement offer the main domestic opportunities, with farmer adoption models ranging from free distribution to €25 per tonne pricing. For export, we confirmed interest from a potential buyer showing interest in 7,000 tonnes per year starting in 2027, and worked through shipping logistics and container economics to validate the commercial pathway.
The study was exploratory rather than a final investment decision, designed to support SOCAR's announcement intentions at COP29. SOCAR now has the data it needs to evaluate whether Azerbaijan should move forward with its first biochar carbon removal facility.
