Varaha, an Indian developer of carbon dioxide removal ( CDR ) projects with smallholder farmers across Asia, has signed a major offtake agreement with Microsoft for biochar carbon removal in India.

Varaha will develop 18 industrial gasification reactors that will operate for 15 years, with a total projected removal volume exceeding 2 million tonnes of carbon dioxide over the project’s lifetime.

The project sources cotton stalks from smallholder farms in Maharashtra, India, for use as the feedstock for biochar production. After harvest, these stalks are treated as waste biomass, and open-field burning is a common practice across the region’s cotton belt.

This project, the company points out, provides an alternative use for the stalks, converting them into biochar through Varaha’s biomass gasification facilities and sequestering biogenic carbon for centuries.

Varaha’s biochar project also delivers measurable benefits for farmers and communities by improving air quality, promoting regenerative agriculture and lifting farmer livelihoods.

“This agreement demonstrates that high-integrity carbon removal can drive transformative co-benefits for communities and ecosystems,” says Madhur Jain, the company’s CEO. “We’re not just removing carbon, we’re creating economic incentives for farmers to mitigate open burning of crop residues.”

The project’s first reactor, the company notes, will operate alongside its 52-acre cotton research farm in Maharashtra, where it works directly with farmers to test sustainable practices, including soil application of biochar, under real-world conditions.

With up to 18 total reactors funded across India’s cotton belt through Microsoft’s commitment, the focus, the company emphasizes, remains clear – scaling quickly while putting farmers first.

The agreement, Varaha shares, signals growing recognition of the region’s potential for high-quality carbon removal projects. Biochar offers permanent carbon storage on geological timescales while supporting agricultural systems, the company explains, making it one of the most promising pathways for durable carbon dioxide removal.

The credits generated through the Varaha programme, the company states, meet rigorous standards for measurement, reporting and verification, ensuring that each tonne represents genuine, permanent carbon removal.

“This offtake agreement broadens the diversity of Microsoft’s carbon removal portfolio with Varaha's biochar project design that is both scalable and durable,” notes Phil Goodman, Microsoft’s programme director for CDR. “It represents a step forward in scaling biochar CDR growth in Asia and advancing co-benefits for farmers – improved soils, cleaner air and shared economic opportunity.”