Alt Carbon Raises $12M Seed Funding for Carbon Removal in India

Alt Carbon Secures $12 Million Seed Funding for Carbon Dioxide Removal in South Asia

A climate technology startup, Alt Carbon, has successfully raised $12 million in a seed funding round to broaden its carbon dioxide removal initiatives within South Asia. The company utilizes enhanced rock weathering on agricultural lands to sequester carbon for millennia.

From Tea Estate Struggles to Climate Innovation

The origins of Alt Carbon trace back to May 2020, beginning with a return to the Agarwal family’s tea estate, Salem Hill, in Darjeeling. Siblings Shrey and Sparsh Agarwal initially anticipated having to close the estate due to financial difficulties.

However, this visit sparked the idea for Alt Carbon, officially launched in late 2023. They initially investigated carbon markets as a potential solution to revitalize their family business and assist other tea growers in the region.

Discovering Enhanced Rock Weathering

Their research led them to enhanced rock weathering, a method capable of transforming Darjeeling from a region vulnerable to climate change into a leader in climate action. Sparsh Agarwal noted that many existing carbon projects in India generate low-quality credits.

Alt Carbon initiated a pilot program in 2023 on approximately 500 acres surrounding their family’s tea estate. This was subsequently expanded to include rice and bamboo farms in North Bengal, with ambitions to reach 500,000 hectares of land.

Carbon Removal Goals

The startup projects the removal of 5 million tons of carbon from the region by the year 2030. This ambitious goal will be supported by the recent seed funding.

The Science Behind Alt Carbon’s Approach

Alt Carbon employs waste basalt rock dust, sourced from mines and quarries within the Rajmahal Traps volcanic region of eastern India. This dust, a byproduct of construction, is spread across farmland.

The basalt dust reacts with rainwater, facilitating the removal of carbon dioxide and enriching the soil with essential micronutrients, thereby improving fertility and crop yields. This process forms stable bicarbonate ions, which are transported to the ocean and ultimately stored as calcium carbonate for over 10,000 years.

Sustainable Logistics and Proprietary Blends

Transportation of the rock dust utilizes existing rail and truck freight systems, minimizing additional emissions. The company avoids dedicated rock processing by utilizing waste basalt from current mining operations.

To encourage adoption by farmers, Alt Carbon has developed a unique blend called Hari Maati (green soil), combining basalt with other organic components.

Cost-Effectiveness and Monitoring

Currently, Alt Carbon’s carbon credits are priced at $270 per metric ton, significantly lower than the estimated $800 per ton for direct air capture. The company anticipates further cost reductions within 36 to 48 months.

The startup employs a three-tiered measurement system to assess weathering progress and carbon removal rates. This includes tracking weathering, analyzing soil and groundwater, and monitoring river systems.

Machine learning and reactive transport models are also utilized to refine carbon removal calculations.

Adherence to Industry Standards

Alt Carbon’s methodologies align with established carbon removal registries like Isometric and Puro.earth. The company has also received endorsements from organizations including SBTi, ICVCM, and CORSIA.

Expansion and Future Plans

With a team of 25, including 8-10 PhDs, Alt Carbon operates labs in Darjeeling and Bengaluru. The seed funding will facilitate lab expansion, increased soil analysis, and the development of a hardware studio for enhanced data collection.

Plans include deploying ground sensors for more cost-effective and rapid data acquisition.

Strategic Partnerships and Agreements

In 2023, Alt Carbon secured a $500,000 pre-purchase agreement with Frontier and a $1 billion advanced market commitment led by Stripe, Alphabet, Meta, Shopify, and McKinsey.

A strategic partnership with NextGen, a coalition initiated by South Pole and Mitsubishi Corporation, has also been established. Additional members of NextGen include BCG Group, Swiss RE, LGT, and UBS.

Recently, an offtake agreement was signed with Japan’s MOL Group for the purchase of 10,000 tons of carbon removal credits.

First Carbon Credits Imminent

Alt Carbon is poised to deliver its initial carbon credits within the month through Isometric, according to Sparsh Agarwal.