Climate tech startup Stack Carbon has signed a Memorandum of Understanding (MOU) with Chinese company Jiaxing Tongao Environmental Technology and Norwegian firm TerraCapX AS to establish Uganda’s first large-scale biochar production facility.

The three partners inked the agreement during a ceremony organized in collaboration with the Uganda Parliament.

Estimated at $12 million, the ambitious project, called the Nile Char Carbon Removal Project, will deliver carbon dioxide removal and address the issue of agricultural waste in the country, while also improving soil carbon and lowering the reliance on imported chemical fertilizers. 

Over a period of 20 years, the Nile Char Carbon Removal Project is expected to process more than 10 million tonnes of agricultural waste that would otherwise be incinerated or left to decompose in open air, releasing CO2 emissions into the atmosphere. 

By processing this biomass waste into biochar, the project will generate an end product that will sequester atmospheric carbon dioxide and improve the nutrient retention in the soil, boosting its overall state. 

«We must move faster to scale carbon removal,» Dr. Mai Bui, Supercritical

Due to its soil-enriching capabilities, biochar also lowers the need for chemical fertilizers, for which Ugandan farmers are said to spend more than $300 million annually.

According to Stack Carbon, one of the initiative’s goals is to reduce this cost pressure for agricultural workers, helping address this sector issue on a national level. 

As part of the MOU, Jiaxing Tongao Environmental Technology Co. Ltd. will provide the pyrolysis equipment that will enable a production capacity of 30 tonnes of biochar per day. For the Chinese company, this project marks the first venture into Africa, as well as the first international deployment. 

Relevant: Terraton Secures $11.5M To Scale Biochar Carbon Removal In Africa

The Nile Char Carbon Removal Project is slated to begin with equipment installation in mid-2026, with commercial operations expected to start in Q3 2026. 

To ensure quality and transparency, the initiative will follow established market standards, and to support local capacity building, it will provide technical training for up to 100 Ugandan stakeholders in the upcoming months.

Read more: Altitude Signs One Of Its Largest Biochar Deals Yet Across Two Asian Markets