Google has struck the world’s largest biocoal decarbonisation deal with Indian startup Varaha

Google has agreed to buy 100,000 tons of carbon dioxide removal credits from Indian startup Varaha, the first deal of its kind with a carbon project in India and the largest involving biochar produced from biomass (also called horticultural coal or the “black gold” of soil). ).

The two companies said on Thursday that the acquisition agreement credits will be delivered to Google by 2030 from Varaha’s industrial biochar project in the western Indian state of Gujarat.

The financial terms of the deal were not disclosed. To date, the New Delhi-based startup is the only Indian company to be included in the decarbonization and registration standard boro.earth.

Biochar is produced in two ways: artisanal and industrial. The artisanal method is community-based, with farmers burning crop residue in conical flasks without using machinery. In contrast, industrial biochar is manufactured using large reactors that process 50 to 60 tons of biomass per day.

The Varaha project will generate industrial biochar from invasive plant species. Prospis julifloraUsing a pyrolysis facility in Gujarat. Invasive species affect plant biodiversity and have overtaken grasslands used for raising livestock. Varaha will harvest the plant and make efforts to restore native grasslands in the region, Madhur Jain, co-founder and CEO of the company, said in an interview. Once the biochar is produced, an external auditor will send its report to Puro.Earth to generate the credits.

Although biochar is seen as a long-term solution to decarbonisation, its durability can range between 1,000 and 2,500 years depending on production and environmental factors.

For context: Carbon credits relate to how long carbon can be permanently removed from the atmosphere by offsetting emissions with sustainable activities. Greenhouse gases have a very long impact on the atmosphere, potentially hundreds or thousands of years, so any effective carbon credit program must promise a similarly long period of decarbonization. “Permanence” here refers to how long carbon remains stored in the soil before returning to the atmosphere.

Jain told TechCrunch that Varaha tried using different feedstocks and different parameters within its reactors to find the best combination to achieve permanence for nearly 1,600 years.

The startup has also built a digital monitoring, reporting and verification system, integrating remote sensing to monitor biomass availability. It also has a mobile app that captures geotagged and time-stamped images to geo-document activities, including biomass mining and biochar field application.

Varaha said that through its first project, it processed at least 40,000 tons of biomass and produced 10,000 tons of biochar last year.

“Even if we do not grow our skills, we have already reached a level where we can successfully process 40,000 tons of biomass per year, which means we can easily reach the goal of 100,000 tons of biochar by 2030.” Jane said.

He added that every ton of biochar generates 2.5 carbon credits, and the startup aims to reach one million credits annually by 2030.

Carbon credits have gained importance as companies generate greenhouse gas emissions, and each credit equates to a one-tonne reduction in carbon dioxide. By purchasing carbon credits, companies can support sustainable projects in an attempt to offset their emissions.

Google set a new record with this deal, as it was the last large biochar decarbonization transaction by Senken and Exomad Green. It involves 81,600 tons of carbon credits in biochar between 2025-2028. However, Google’s deal with Varaha pales in comparison to the tech giant’s carbon emissions.

In 2023, the search giant had total greenhouse gas emissions of approx 14.3 million tons of carbon dioxide equivalent (gases)13% more than the previous year. The continued growth in AI development is expected to worsen these emissions numbers over time, although Google has said it aims to get there. Net zero emissions across all its operations and value chains by 2030.

“Biochar is a promising approach to decarbonization because it has the potential to scale around the world, using existing technology, with positive side effects on soil health,” Randy Spock, Google’s decarbonization lead, said in a statement.

Varaha currently runs 14 technology-driven carbon projects in India, Nepal, Bangladesh and Kenya. The startup says it has also converted more than 100,000 small farmers to sustainable practices, helping to remove more than two million tons of greenhouse gas emissions. It has raised $12.7 million in total, including $8.7 million In a Series A round last year, it is backed by funds including RTP Global, Omnivore, Orios Venture Partners, IMC Pan Asia Alliance Group’s Octave Wellbeing Economy Fund, and Japan’s Norinchukin Bank.