Google has made a landmark agreement to acquire 100,000 tons of carbon dioxide removal credits from Indian startup Varaha. This marks Google’s inaugural deal with a carbon initiative in India and represents the largest transaction concerning biomass-derived biochar, often referred to as horticultural charcoal or “black gold” for its benefits to soil.
The offtake agreement stipulates that Google will receive the credits by 2030 as part of Varaha’s industrial biochar initiative located in Gujarat, a state in western India, as announced by both companies on Thursday.
The financial details of this agreement remain undisclosed. Varaha is currently the only Indian startup incorporated in the carbon removal standard and registry Puro.Earth.
Biochar can be produced using two primary methods: artisanal and industrial. The artisanal process is community-centered, where farmers burn crop waste in cone-shaped containers without machines. Conversely, industrial biochar is created in large reactors that can process between 50 and 60 tons of biomass each day.
Varaha’s initiative will produce industrial biochar from the invasive species Prosopis Juliflora, utilizing a pyrolysis facility in Gujarat. This species affects local biodiversity and has taken over grasslands that are vital for livestock. According to Madhur Jain, Varaha’s co-founder and CEO, the company plans to harvest this invasive plant while also working to restore native grasslands in the area. Following production, a third-party auditor will prepare a report for Puro.Earth to issue credits.
While biochar is regarded as a durable carbon removal method, its permanence can fluctuate between 1,000 to 2,500 years based on the conditions of its production and the environment.
For context: Carbon credits are associated with the duration for which carbon can be permanently eliminated from the atmosphere by offsetting emissions through sustainable practices. Given that greenhouse gases can have a prolonged impact on the atmosphere, often lasting hundreds or thousands of years, any successful carbon credit initiative must ensure a similarly extended period of carbon sequestration. “Permanence” refers to how long carbon remains stored in the soil before being released back into the atmosphere.
Jain shared with TechCrunch that Varaha has explored various feedstocks and reactor parameters in an effort to achieve a permanence rate close to 1,600 years.
The startup has also implemented a digital system for monitoring, reporting, and verification, using remote sensing to track biomass availability. They have developed a mobile application that captures geo-tagged, time-stamped images to document activities related to biomass extraction and the application of biochar in the fields.
In its initial project, Varaha claims to have processed at least 40,000 tons of biomass and produced 10,000 tons of biochar last year.
“Our capabilities have already enabled us to process 40,000 tons of biomass each year, and we are confident we can meet the aim of producing 100,000 tons of biochar by 2030,” Jain stated.
He noted that every ton of biochar can yield 2.5 carbon credits, and the startup’s goal is to reach 1 million credits each year by 2030.
As companies continuously generate greenhouse gas emissions, carbon credits have become increasingly crucial, with each credit representing a reduction of one ton of carbon dioxide. By acquiring these credits, businesses can invest in sustainable projects in order to offset their emissions.
This agreement has set a new benchmark for Google, surpassing the previous significant transaction involving biochar carbon credits between Senken and Exomad Green, which involved 81,600 tons of biochar carbon credits for the period 2025-2028. Yet, when viewed against Google’s overall carbon emissions, this deal remains relatively small.
In 2023, Google reported total greenhouse gas emissions of approximately 14.3 million tons of CO₂ equivalent, reflecting a 13% rise from the previous year. The anticipated expansion of AI development is likely to exacerbate these emission figures over time; however, Google has pledged to achieve net-zero emissions across all operations and value chains by 2030.
“Biochar presents a viable solution for carbon removal because it can be scaled globally with readily available technology, offering additional benefits for soil health,” commented Randy Spock, Google’s head of carbon removal, in a statement.
Varaha currently oversees 14 technology-driven carbon initiatives located in India, Nepal, Bangladesh, and Kenya. The startup claims to have transitioned more than 100,000 smallholder farmers to sustainable practices, contributing to the elimination of over 2 million tons of greenhouse gas emissions. To date, it has secured a total of $12.7 million in funding, including $8.7 million from a Series A investment round last year, supported by various funds including RTP Global, Omnivore, Orios Venture Partners, IMC Pan Asia Alliance Group’s Octave Wellbeing Economy Fund, and Japan’s Norinchukin Bank.
Compiled by Techarena.au.
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