Key Takeaways
- Varaha has signed a long-term biochar carbon removal offtake agreement with Microsoft focused on smallholder farming systems in India.
- The project will deploy 18 industrial biomass gasification reactors with a projected removal of more than 2 million tonnes of CO₂ over 15 years.
- Cotton stalks from farms in Maharashtra will be converted into biochar, reducing open-field burning and associated air pollution.
- Participating farmers will receive direct economic benefits while improving soil health through regenerative practices.
- The agreement reflects growing demand for durable, high-integrity carbon removal solutions in Asia.
Varaha and Microsoft Formalize Biochar Carbon Removal Agreement
Varaha, a carbon dioxide removal (CDR project developer working with smallholder farmers across Asia, has announced a major offtake agreement with Microsoft for biochar-based carbon removal in India. Under the agreement, Varaha will develop and operate 18 industrial gasification reactors over a 15-year period, with a total projected carbon dioxide removal volume exceeding 2 million tonnes.
The project will be implemented in India’s cotton-growing regions, beginning in Maharashtra, and is designed to deliver long-term carbon sequestration alongside agricultural and environmental co-benefits.
Biochar Production Linked to Smallholder Farming Systems
The biochar facilities will source cotton stalks from smallholder farms, where post-harvest residue burning is a common practice. Instead of open-field burning, the agricultural waste will be processed through biomass gasification to produce biochar, which permanently sequesters biogenic carbon when applied to soils.
The first reactor will operate alongside Varaha’s 52-acre cotton research farm in Maharashtra, where the company works directly with farmers to test sustainable practices, including biochar soil application, under field conditions. Additional reactors funded through the agreement are expected to be deployed across India’s cotton belt.
“This agreement demonstrates that high-integrity carbon removal can drive transformative co-benefits for communities and ecosystems,” said Madhur Jain, Chief Executive Officer of Varaha. “We’re not just removing carbon—we’re creating economic incentives for farmers to mitigate open burning of crop residues.”
Environmental and Economic Co-Benefits for Farmers
Beyond carbon removal, the project is designed to address several local challenges. By reducing crop residue burning, the initiative is expected to lower particulate matter (PM2.5) emissions, contributing to improved air quality in rural communities. Farmers participating in the program adopt regenerative practices such as residue mulching and biochar application, which can enhance soil health, water retention, and long-term productivity.
The program also provides additional income streams for smallholder farmers, who are compensated for supplying biomass and adopting approved residue management practices.
Varaha + Microsoft: Expanding Durable Carbon Removal in Asia
The agreement adds biochar to Microsoft’s diversified carbon removal portfolio and highlights the scalability of agricultural-based CDR solutions in Asia.
“This offtake agreement broadens the diversity of Microsoft’s carbon removal portfolio with Varaha’s biochar project design that is both scalable and durable,” said Phil Goodman, Program Director for Carbon Dioxide Removal at Microsoft. “It represents a step forward in scaling biochar CDR growth in Asia while advancing meaningful co-benefits for farmers.”
Credits generated through the Varaha program will follow rigorous measurement, reporting, and verification standards to ensure permanence and environmental integrity.
