Microsoft has entered into an offtake agreement with Varaha, an Indian climate-tech startup, to purchase biochar-based carbon removal credits. The deal marks a significant step in Microsoft's efforts to support carbon removal projects in the Global South and advance its goal of becoming carbon negative by 2030.
Under the agreement, Varaha will develop 18 industrial gasification reactors that utilize cotton stalks from smallholder farms in India. These reactors are projected to remove over 2 million tonnes of CO₂ throughout the project's lifetime. The partnership signals a growing interest in high-quality, nature-based carbon removal solutions and aims to scale the carbon market in Asia.