Microsoft taps India’s Varaha for durable carbon removal offtake

Microsoft has entered into a multi-year agreement with Indian startup Varaha to purchase over 100,000 tons of carbon dioxide removal (CDR) credits through 2029. This deal supports Microsoft’s goal of becoming carbon-negative by 2030 amid rising emissions driven by its expanding AI and cloud operations. Varaha’s project focuses on converting cotton crop waste, typically burned in fields causing pollution, into biochar—a charcoal-like substance that sequesters carbon when added to soil. The initiative will initially operate in Maharashtra, involving 40,000–45,000 smallholder farmers, and plans to deploy 18 industrial reactors over 15 years, targeting over 2 million tons of CO2 removal during the project’s lifetime. Varaha has rapidly scaled its biochar production, processing 240,000 tons of biomass in 2025 and generating approximately 115,000 carbon credits, a significant increase from the previous year. The startup aims to double this throughput in 2026, leveraging its