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Indian startup Varaha has signed a deal with Microsoft to develop 18 industrial gasification reactors aimed at removing approximately 2 million tonnes of carbon dioxide over a 15-year period. The project will utilize cotton stalks sourced from smallholder farms in Maharashtra, India, converting them into biochar through biomass gasification.

Varaha's CEO Madhur Jain stated that this project supports regenerative agriculture and improves soil health, benefiting farmers and communities. The reactors are expected to become operational in Q3 2026.

Microsoft will fund part of the project, which aims to remove over 100,000 tonnes of CO2 within three years, while the total projected removal volume over the reactors' lifetime is over 2 million tonnes. Varaha aims to deliver its first carbon credits to Microsoft by late 2026 to early 2027.