Google's Biochar Deal: Carbon Removal with Varaha

Google Secures 100,000 Tons of Carbon Dioxide Removal Credits from Varaha

A landmark agreement has been reached between Google and Indian startup Varaha for the purchase of 100,000 tons of carbon dioxide removal credits. This represents Google’s inaugural carbon project investment within India and constitutes the largest deal to date centered around biochar derived from biomass – often referred to as horticultural charcoal or “black gold” for its soil-enhancing properties.

Deal Details and Project Location

The delivery of these offtake agreement credits to Google is scheduled to occur by the year 2030. The source of these credits will be Varaha’s industrial biochar project, situated in the western Indian state of Gujarat, as announced by both companies on Thursday.

The financial specifics of this agreement have not been publicly revealed. Currently, Varaha stands as the sole Indian entity listed on the respected carbon removal standard and registry, Puro.Earth.

Biochar Production Methods

Biochar can be created through two distinct methodologies: artisanal and industrial processes. The artisanal approach relies on community involvement, with farmers utilizing conical flasks to burn crop residue without mechanized equipment.

Conversely, industrial biochar production employs large-scale reactors capable of processing between 50 and 60 tons of biomass on a daily basis.

Varaha’s Innovative Approach

Varaha’s project will focus on generating industrial biochar from Prosopis Juliflora, an invasive plant species. This species negatively impacts native plant biodiversity and has aggressively overtaken grasslands traditionally used for livestock grazing.

The company intends to harvest this invasive plant and simultaneously undertake efforts to restore the region’s native grasslands, according to Madhur Jain, Varaha’s co-founder and CEO. Following biochar production, a third-party audit will be conducted, with the findings submitted to Puro.Earth for credit generation.

Carbon Removal Permanence

While biochar is recognized as a viable long-term carbon removal solution, the duration of its carbon storage can fluctuate between 1,000 and 2,500 years, contingent upon production methods and environmental conditions.

Understanding Carbon Credits

Carbon credits are directly linked to the length of time carbon can be permanently sequestered from the atmosphere. This is achieved by offsetting emissions through sustainable initiatives. Given the prolonged impact of greenhouse gases – lasting for centuries – any effective carbon credit program must guarantee a comparable duration of carbon removal.

“Permanence” signifies the period carbon remains stored within the soil before being released back into the atmosphere.

Optimizing for Long-Term Storage

Madhur Jain shared with TechCrunch that Varaha meticulously tested various feedstocks and reactor parameters to optimize permanence, aiming for a storage duration approaching 1,600 years.

Digital Monitoring and Verification

The startup has also developed a comprehensive digital monitoring, reporting, and verification (MRV) system. This incorporates remote sensing technology to assess biomass availability and a mobile application for capturing geo-tagged, time-stamped images documenting activities like biomass excavation and biochar application.

Production Capacity and Future Goals

In its initial phase, Varaha processed at least 40,000 tons of biomass and produced 10,000 tons of biochar last year.

“We have already attained a processing capacity of 40,000 tons of biomass annually,” Jain stated. “This positions us to readily achieve the 100,000-ton biochar target by 2030, even without further skill development.”

The company anticipates generating 2.5 carbon credits per ton of biochar, with a goal of reaching 1 million credits annually by 2030.

The Importance of Carbon Credits

Carbon credits are becoming increasingly important as companies strive to reduce their greenhouse gas emissions. Each credit represents a one-ton reduction in carbon dioxide. By purchasing these credits, organizations can support sustainable projects and offset their environmental impact.

Google’s Deal in Perspective

Google’s agreement sets a new benchmark, surpassing the previous significant biochar carbon removal transaction between Senken and Exomad Green, which involved 81,600 tons of biochar credits between 2025 and 2028. However, Google’s deal with Varaha remains relatively small compared to the tech giant’s overall carbon footprint.

In 2023, Google’s total greenhouse gas emissions amounted to approximately 14.3 million tons of CO₂ equivalent, a 13% increase from the previous year. The continued expansion of AI development is expected to further increase these emissions, although Google is committed to achieving net-zero emissions across its operations and value chains by 2030.

Industry Perspective

“Biochar presents a promising pathway for carbon removal due to its scalability worldwide, utilizing existing technology, and offering beneficial effects on soil health,” commented Randy Spock, Google’s carbon removal lead.

Varaha’s Broader Impact

Varaha currently operates 14 tech-driven carbon projects across India, Nepal, Bangladesh, and Kenya. The startup reports having facilitated the transition of over 100,000 small farmers to sustainable practices, resulting in the removal of more than 2 million tons of greenhouse gas emissions. The company has secured $12.7 million in funding, including $8.7 million in a Series A round last year, with backing from investors like RTP Global, Omnivore, Orios Venture Partners, IMC Pan Asia Alliance Group’s Octave Wellbeing Economy Fund, and Japan’s Norinchukin Bank.