Project to remove over 2 million tonnes of CO₂ while supporting smallholder farmers
Varaha, a carbon dioxide removal (CDR) project developer working with smallholder farmers across Asia, has entered into a partnership with Microsoft to scale biochar-based carbon removal in India.
Long-term carbon removal infrastructure
Under the agreement, Varaha will develop 18 industrial biomass gasification reactors that will operate over a 15-year period, with a projected carbon removal volume of more than 2 million tonnes of CO₂ across the project’s lifetime. The reactors will be deployed across India’s cotton-growing regions, starting with Maharashtra.
Turning farm waste into permanent carbon storage
The project uses cotton stalks sourced from smallholder farms as feedstock for biochar production. After harvest, these stalks are typically treated as waste, with open-field burning being a common practice in the cotton belt. Varaha said the initiative offers a sustainable alternative by converting agricultural residue into biochar through its gasification facilities, enabling long-term sequestration of biogenic carbon for centuries.
In addition to carbon removal, the project is designed to reduce air pollution from crop burning and generate additional income streams for farmers supplying biomass.
Farmer-first implementation model
The first reactor will operate alongside Varaha’s 52-acre cotton research farm in Maharashtra, where the company collaborates directly with farmers to test sustainable practices, including the application of biochar to soil under real-world conditions. With Microsoft’s commitment supporting up to 18 reactors, Varaha plans to scale rapidly while keeping farmer participation central to the model.
Growing focus on durable CDR solutions
Biochar is increasingly viewed as a high-integrity, durable carbon removal pathway, offering permanent storage on geological timescales while delivering agricultural co-benefits such as improved soil health.
Microsoft said the agreement strengthens the diversity of its carbon removal portfolio in Asia, combining scalability with durability and farmer-led impact. The partnership also highlights the growing role of India and the broader region in global carbon removal efforts.
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