Microsoft signs 100,000‑ton biochar carbon removal deal with India's

Microsoft has agreed to purchase more than 100,000 tons of carbon‑removal credits from Indian startup Varaha over the next three years, using biochar produced from cotton crop waste in Maharashtra [2]. The partnership expands Microsoft’s durable carbon‑removal portfolio and positions Varaha as a leading supplier of biochar credits in Asia [1].

Key takeaways

• Microsoft will buy >100,000 tons of biochar‑based CO₂ removal credits through 2029 [2].
• Varaha plans 18 industrial gasification reactors operating for 15 years, targeting >2 million tons of CO₂ removal over the project life [1].
• The project will involve 40,000‑45,000 smallholder farmers and convert cotton stalks that are normally burned into stable biochar [2].
• Varaha’s in‑house digital MRV system was built to meet Microsoft’s monitoring requirements [1].
• The deal follows Microsoft’s recent forestry and soil‑carbon agreements and reflects growing corporate demand for durable CDR solutions [1].

Scaling biochar production in Maharashtra

Varaha’s new off‑take agreement with Microsoft focuses on the western Indian state of Maharashtra, where cotton residues are often burned after harvest. The startup will install its first gasifier next to a 52‑acre cotton research farm and eventually operate 18 reactors that convert the biomass into biochar—a charcoal‑like material that locks carbon in soil for centuries [2]. By partnering with 40,000‑45,000 smallholder farmers, Varaha will pay participants for both supplying cotton stalks and adopting regenerative practices such as residue mulching and biochar application [2].

The company says the reactors will run for 15 years, delivering a cumulative removal of more than 2 million tons of CO₂, a figure that makes Varaha the world’s second‑largest provider of durable carbon removals, according to its CEO [1]. To satisfy Microsoft’s stringent verification standards, Varaha has created a bespoke digital measurement, reporting and verification (MRV) platform, leveraging its agricultural expertise to track biomass supply, reactor performance, and credit issuance [1].

Corporate demand for durable carbon removal

Microsoft’s commitment comes as large corporations intensify spending on carbon‑removal projects that promise long‑term storage, amid rising scrutiny of offset quality. The tech giant, which aims to be carbon‑negative by 2030, has already announced forestry and soil‑carbon deals and now adds Varaha’s biochar project to diversify its portfolio [1]. Biochar is highlighted for its durability—carbon can remain sequestered for millennia—and for co‑benefits such as reduced air pollution from avoided open‑field burning and improved soil health [1].

Why it matters

The Microsoft‑Varaha deal underscores a shift toward durable, agriculture‑based carbon removal in emerging markets. By converting waste that would otherwise be burned, the project tackles both emissions and farmer livelihoods, offering payments for biomass supply and regenerative practices. Successful scaling will depend on Varaha’s ability to manage a complex supply chain across tens of thousands of farms and to maintain transparent MRV processes that satisfy corporate buyers. If the partnership meets its targets, it could signal a viable pathway for large‑scale biochar deployment and encourage further investment in durable CDR solutions across Asia.