Varaha partners with tech giant Microsoft for biochar-based carbon removal in India

Varaha, a developer of carbon dioxide removal (CDR) projects with smallholder farmers across Asia, has partnered with Satya Nadella-led Microsoft for biochar carbon removal in India.

Varaha will develop 18 industrial gasification reactors that will operate for 15 years, with a total projected removal volume exceeding 2 million tonnes of CO₂ over the project’s lifetime.

The project sources cotton stalks from smallholder farms in Maharashtra, India for use as the feedstock for biochar production. After harvest, these stalks are treated as waste biomass, and open-field burning is a common practice across the region’s cotton belt. The company said that this project provides an alternative use for the stalks, converting them into biochar through Varaha’s biomass gasification facilities and sequestering biogenic carbon for centuries.

"This agreement demonstrates that high-integrity carbon removal can drive transformative co-benefits for communities and ecosystems," said Madhur Jain, Varaha CEO. "We're not just removing carbon—we're creating economic incentives for farmers to mitigate open burning of crop residues."

The project’s first reactor will operate alongside Varaha’s 52-acre cotton research farm in Maharashtra, where Varaha works directly with farmers to test sustainable practices, including soil application of biochar, under real-world conditions. With up to 18 total reactors funded across India’s cotton belt through Microsoft’s commitment, the focus remains clear: scaling quickly while putting farmers first.

The agreement signals growing recognition of the region's potential for high-quality carbon removal projects. Biochar offers permanent carbon storage on geological timescales while supporting agricultural systems, making it one of the most promising pathways for durable carbon dioxide removal.

"This offtake agreement broadens the diversity of Microsoft’s carbon removal portfolio with Varaha’s biochar project design that is both scalable and durable. It represents a step forward in scaling biochar CDR growth in Asia and advancing co-benefits for farmers—improved soils, cleaner air, and shared economic opportunity,” said Phil Goodman, program director, CDR at Microsoft.