Varaha and Microsoft Team Up for Ambitious Carbon Removal Initiative
On January 15, 2026, Varaha, a prominent developer specializing in carbon dioxide removal (CDR) projects, formalized a significant agreement with technology giant Microsoft. This partnership aims to remove over 100,000 tons of carbon dioxide through innovative biochar processes over three years. Varaha plans to construct 18 industrial gasification reactors across India, operational over a 15-year lifecycle, targeting an impressive total of over 2 million tons of CO₂ removal throughout the project's duration.
The initiative prominently utilizes cotton stalks from smallholder farmers in Maharashtra, India, as a vital raw material for biochar production. Post-harvest, these stalks are typically considered biomass waste, often burned in open fields, a common practice in the cotton belt region. Varaha's project presents an environmentally friendly alternative by transforming these stalks into biochar at their biomass gasification facilities, effectively sequestering carbon for centuries.
Varaha’s biochar initiative not only addresses carbon removal but also offers measurable benefits to farmers and local communities.
1. Improved Air Quality: By curbing the prevalent practice of burning cotton residues, the initiative significantly reduces PM 2.5 pollutants, which have critical implications for air quality. This program provides an economically viable alternative to burning on fields, tackling a notable source of seasonal air pollution.
2. Promoting Regenerative Agriculture: Participating farmers are encouraged to adopt regenerative agricultural practices such as mulching crop residues and applying biochar to their soils. These practices lead to enhanced soil health, better water retention, and improved long-term agricultural productivity.
3. Enhancing Farmer Livelihoods: The program directly uplifts the income of thousands of smallholder farmers through compensation for the provision of agricultural biomass and incorporation of crop residues into the biochar processing framework. This financial support creates economic incentives that benefit both the environment and local livelihoods.
Madhur Jain, CEO of Varaha, emphasized the transformative potential of this agreement, stating, “This partnership exemplifies how a deeply integrated carbon removal strategy can yield transformative benefits for both communities and ecosystems. Not only do we capture carbon, but we also create economic incentives for farmers to mitigate the open burning of crop residues.”
The first reactor of this ambitious project is set to operate alongside Varaha’s 52-acre cotton research farm in Maharashtra, where direct collaborations with farmers will test and promote sustainable practices, including the practical application of biochar. Funding from Microsoft’s commitment guarantees a rapid scale-up, with plans for up to 18 reactors strategically positioned within India's cotton belt.
This groundbreaking agreement represents a significant acknowledgment of the region’s potential for high-quality carbon removal projects. Biochar stands out for its long-term carbon storage capabilities, supporting agricultural systems, thus becoming one of the most promising methods for permanent CO₂ removal.
Phil Goodman, Program Director for CDR at Microsoft, noted the agreement’s importance, stating, “This offtake agreement diversifies Microsoft’s carbon removal portfolio through Varaha’s scalable and permanent biochar project design. It signifies progress toward enhancing biochar CDR around Asia while promoting positive outcomes for farmers—better soils, cleaner air, and shared economic opportunities.”
The credits generated by Varaha’s projects comply with stringent measurement, reporting, and verification standards, ensuring that every ton translates to genuine and lasting carbon reductions.
Founded in 2022, Varaha is a forefront player in CDR initiatives in Asia, committed to advancing climate solutions championed by smallholder farmers. With headquarters in Gurugram, India, the organization has garnered recognition for innovative projects in regenerative agriculture, agroforestry, biochar applications, and enhanced rock weathering, currently operating 20 climate action initiatives across India, Nepal, and Bangladesh.
The initiative prominently utilizes cotton stalks from smallholder farmers in Maharashtra, India, as a vital raw material for biochar production. Post-harvest, these stalks are typically considered biomass waste, often burned in open fields, a common practice in the cotton belt region. Varaha's project presents an environmentally friendly alternative by transforming these stalks into biochar at their biomass gasification facilities, effectively sequestering carbon for centuries.
Local Impact and Community Benefits
Varaha’s biochar initiative not only addresses carbon removal but also offers measurable benefits to farmers and local communities.
1. Improved Air Quality: By curbing the prevalent practice of burning cotton residues, the initiative significantly reduces PM 2.5 pollutants, which have critical implications for air quality. This program provides an economically viable alternative to burning on fields, tackling a notable source of seasonal air pollution.
2. Promoting Regenerative Agriculture: Participating farmers are encouraged to adopt regenerative agricultural practices such as mulching crop residues and applying biochar to their soils. These practices lead to enhanced soil health, better water retention, and improved long-term agricultural productivity.
3. Enhancing Farmer Livelihoods: The program directly uplifts the income of thousands of smallholder farmers through compensation for the provision of agricultural biomass and incorporation of crop residues into the biochar processing framework. This financial support creates economic incentives that benefit both the environment and local livelihoods.
Madhur Jain, CEO of Varaha, emphasized the transformative potential of this agreement, stating, “This partnership exemplifies how a deeply integrated carbon removal strategy can yield transformative benefits for both communities and ecosystems. Not only do we capture carbon, but we also create economic incentives for farmers to mitigate the open burning of crop residues.”
Pioneering Sustainable Practices in Agriculture
The first reactor of this ambitious project is set to operate alongside Varaha’s 52-acre cotton research farm in Maharashtra, where direct collaborations with farmers will test and promote sustainable practices, including the practical application of biochar. Funding from Microsoft’s commitment guarantees a rapid scale-up, with plans for up to 18 reactors strategically positioned within India's cotton belt.
This groundbreaking agreement represents a significant acknowledgment of the region’s potential for high-quality carbon removal projects. Biochar stands out for its long-term carbon storage capabilities, supporting agricultural systems, thus becoming one of the most promising methods for permanent CO₂ removal.
Phil Goodman, Program Director for CDR at Microsoft, noted the agreement’s importance, stating, “This offtake agreement diversifies Microsoft’s carbon removal portfolio through Varaha’s scalable and permanent biochar project design. It signifies progress toward enhancing biochar CDR around Asia while promoting positive outcomes for farmers—better soils, cleaner air, and shared economic opportunities.”
The credits generated by Varaha’s projects comply with stringent measurement, reporting, and verification standards, ensuring that every ton translates to genuine and lasting carbon reductions.
About Varaha
Founded in 2022, Varaha is a forefront player in CDR initiatives in Asia, committed to advancing climate solutions championed by smallholder farmers. With headquarters in Gurugram, India, the organization has garnered recognition for innovative projects in regenerative agriculture, agroforestry, biochar applications, and enhanced rock weathering, currently operating 20 climate action initiatives across India, Nepal, and Bangladesh.
Topics Environment）
【About Using Articles】
You can freely use the title and article content by linking to the page where the article is posted.
※ Images cannot be used.
【About Links】
Links are free to use.