Abstract for: Structural Integration of Carbon Dioxide Removal: A System Dynamics Approach to Biochar in Global Coffee Value Chains

Biochar through pyrolysis is considered a promising novel CDR technologies (Weng and Cowie 2025) due to its high durability (Lehmann et al. 2021). Many companies are running pilot projects across cash crops (Li et al. 2024 ). Individually, parts of the system seem technically and economically feasible, offering substantial environment and potentially social benefits. While pyrolysis is a mature technology it is unclear how biochar works integrated into a system. We used both qualitative mapping through causal loop diagrams and quantitative simulation in the software Powersim 10 to map the coffee supply chain as well as how a biochar supply chain would integrate. We gathered data from a combination of interviews, archival information, and procurement data from a coffee supply chain to build the models. We learned that there are clear differences between the performance of different scenarios of supply chain fusion. As the reactors are decentralized more emissions are avoided. However, decentralizing too far leads to decreasing profits for the entire supply chain. Across all the scenarios the addition of the biochar supply chain increased supply chain profit, decreased emissions, and made farmers better off. The ultimate contribution is proving that insetting (returning biochar to soil) is more profitable for farmers and CCS owners than selling carbon credits. This keeps value within the supply chain while enhancing soil health. Future work should optimize last-mile logistics, evaluate social equity in revenue-sharing, and conduct longitudinal studies to measure long-term soil productivity and climate resilience across diverse biomes.