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Varaha Partners with Microsoft for Carbon Removal Projects

In a groundbreaking agreement announced on January 15, 2026, Varaha, a prominent developer of carbon dioxide removal (CDR) projects, has partnered with tech giant Microsoft. This collaboration aims to eliminate over 100,000 tons of carbon emissions over the next three years through innovative biochar solutions in India.

Details of the Agreement

As part of this strategic partnership, Varaha plans to establish 18 industrial gasification reactors in Maharashtra, India, which will operate for 15 years. These reactors are expected to help sequester a total of more than 2 million tons of CO₂ throughout the project’s lifespan. The initiative will utilize cotton stalks sourced from smallholder farms in the region as raw material for biochar production. Previously seen as agricultural waste, these stalks will now be transformed into a valuable resource through Varaha's advanced biomass gasification technology.

Benefits Beyond Carbon Removal

Varaha's biochar initiative not only tackles climate change but also offers a multitude of benefits to local farming communities. By providing a sustainable alternative to the common practice of open burning of cotton crop residues, the project significantly reduces PM 2.5 air pollutants contributing to poor air quality.

Promoting Regenerative Agriculture

The program encourages participating farmers to adopt regenerative agricultural practices, including mulching and the application of biochar to enhance soil health, increase water retention, and improve long-term agricultural productivity. Moreover, the farmers are compensated for both their contributions of agricultural biomass and their efforts to incorporate crop residues effectively.

“Madhur Jain, CEO of Varaha, emphasized that this agreement exemplifies how high-integrity carbon removal can generate transformative benefits for both local communities and ecosystems. It's not just about carbon elimination; we are creating economic incentives for farmers to limit open field burning of crop residues,” Jain stated.

Pilot Projects and Research Collaboration

The first gasification reactor will be constructed adjacent to Varaha's 52-acre cotton research farm in Maharashtra, where practical tests for sustainable practices are already underway. Through real-world conditions, Varaha collaborates directly with farmers to trial biochar applications, aiming to adapt rapidly while prioritizing agricultural stakeholders.

Setting New Standards for Carbon Markets

The agreement highlights a growing recognition of the Asia Pacific region's potential in high-quality carbon removal projects. Biochar offers long-term geological carbon storage while supporting agricultural systems, establishing it as a promising solution for sustainable CO₂ removal. Phil Goodman, Microsoft's Carbon Removal Program Director, noted that this purchase agreement broadens Microsoft’s CDR portfolio, emphasizing the scalable and sustainable nature of Varaha's biochar project.

“This step not only expands biochar CDR efforts in Asia but also promotes related benefits for farmers, such as healthier soils, cleaner air, and shared economic opportunities,” Goodman added.

Stringent Standards for Carbon Credits

Credits generated by Varaha's program adhere to rigorous measurement, reporting, and verification standards, ensuring that every ton of carbon accounted for represents a real and permanent reduction in emissions.

About Varaha

Founded in 2022 and headquartered in Gurugram, India, Varaha is a leading developer of carbon dioxide removal projects in Asia, focused on extending climate solutions driven by smallholder farmers. With expertise in regenerative agriculture, agroforestry, biochar, and rock weathering enhancement projects, Varaha manages 20 carbon projects across India, Nepal, and Bangladesh, consistently utilizing a technological and scientific approach to carbon project development.

To discover more about Varaha’s innovative carbon removal solutions and their impact in the fight against climate change, visit their website or follow them on social media.