# Microsoft signs carbon‑removal deals with India's Varaha and Alt

**Published:** 2026-06-12T02:11:44.498Z  
**Topic:** Microsoft taps Alt Carbon in sign of India’s growing role in carbon removal  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/070dda7f-d2fb-499c-9f10-b3c2a2501b8b

Microsoft has agreed to buy over 100,000 tons of biochar credits from Varaha and 37,000 tons of rock‑weathering credits from Alt Carbon, highlighting its

Microsoft announced two new carbon‑removal contracts in India, committing to buy more than 100,000 t of biochar credits from Varaha and nearly 37,000 t of enhanced rock‑weathering credits from Alt Carbon. The deals expand the tech giant’s portfolio as it seeks to offset emissions from its growing cloud and AI operations [2][1].

**Key takeaways**  
- Microsoft will purchase >100,000 t of biochar‑derived removal credits from Varaha through 2029 [2]  
- An additional 36,920 t of rock‑weathering credits will be sourced from Alt Carbon by 2029 [1]  
- Varaha’s biochar project will use cotton waste in Maharashtra, involving 40,000‑45,000 smallholder farmers [2]  
- Alt Carbon’s Darjeeling Revival Project spreads basalt on West Bengal farmland to accelerate natural carbon sequestration [1]  
- Both contracts include stringent digital monitoring, reporting and verification requirements [2][1]

## Microsoft’s Varaha biochar agreement  

In January 2026 Microsoft signed a three‑year offtake with Indian startup Varaha for more than 100,000 t of carbon‑dioxide removal credits, to be delivered through 2029 [2]. The project converts cotton crop waste—normally burned after harvest—into biochar, a stable charcoal that can be mixed into soil to lock carbon away for decades while reducing air pollution from open‑field burning. The first of 18 planned industrial reactors will sit beside Varaha’s 52‑acre cotton research farm in Maharashtra, and the rollout will eventually cover the state’s cotton‑growing belt, engaging roughly 40,000‑45,000 smallholder farmers [2].  

Varaha reports that in 2025 it processed about 240,000 t of biomass, producing 55,000‑56,000 t of biochar and generating roughly 115,000 credits, a sharp increase from the previous year’s 15,000‑18,000 t [2]. The company says it aims to double its 2025 throughput in 2026, targeting half a million tons of biomass and about 250,000 t of carbon sequestered. Microsoft required bespoke digital monitoring, reporting and verification (MRV) systems, prompting Varaha to build in‑house capabilities to track the thousands of farmers involved [2].

## Alt Carbon enhanced rock‑weathering deal  

A month later Microsoft added a second Indian contract, this time with Bengaluru‑based Alt Carbon, to purchase 36,920 t of carbon‑removal credits by 2029 [1]. The credits will come from the Darjeeling Revival Project, which applies crushed basalt from the Rajmahal Traps to farmland in West Bengal. The silicate rocks react with rainwater and atmospheric CO₂ to form stable bicarbonates, a process known as enhanced rock weathering [1].  

Alt Carbon already issued nearly 10,000 credits—the largest issuance of rock‑weathering credits worldwide—and expects to add another 15,000 by year‑end [1]. The company works with more than 35,000 farmers across about 80,000 acres, and plans to expand its footprint fivefold over the next four to five years [1]. Microsoft’s agreement includes an option for additional purchases if Alt Carbon meets delivery and verification milestones, and the firm will use the Isometric registry’s methodology for credit issuance [1].

## Why it matters  

Both contracts illustrate Microsoft’s strategy of diversifying carbon‑removal supply chains as its AI‑driven cloud services drive up emissions—its FY2024 greenhouse‑gas output rose 23.4 % from a 2020 baseline [2]. By sourcing credits from emerging‑market projects that combine climate mitigation with agricultural benefits, Microsoft seeks verified, durable removals while supporting rural economies. The deals also highlight the broader market challenge: while many startups claim removal capacity, only a limited number have delivered verified credits at commercial scale [1]. As verification standards tighten, projects like Varaha’s biochar reactors and Alt Carbon’s rock‑weathering farms may become key benchmarks for scaling carbon removal in the Global South.

## Sources
1. TechCrunch — [Microsoft taps Alt Carbon in sign of India’s growing role in carbon removal](https://techcrunch.com/2026/06/11/microsoft-taps-alt-carbon-in-sign-of-indias-growing-rile-in-carbon-removal/)
2. TechCrunch — [Microsoft taps India’s Varaha for durable carbon removal offtake | TechCrunch](https://techcrunch.com/2026/01/15/microsoft-taps-indias-varaha-for-asia-first-durable-carbon-removal-offtake/)

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Cite as: TrendWatcher, "Microsoft signs carbon‑removal deals with India's Varaha and Alt", https://www.trendwatcher.in/article/070dda7f-d2fb-499c-9f10-b3c2a2501b8b