India-based carbon project developer Varhad Capital is significantly expanding its carbon removal capacity through a multi-pathway strategy involving biocharBiochar is a carbon-rich material created from biomass decomposition in low-oxygen conditions. It has important applications in environmental remediation, soil improvement, agriculture, carbon sequestration, energy storage, and sustainable materials, promoting efficiency and reducing waste in various contexts while addressing climate change challenges. More and biomethanol production. The company is set to commission its first 3,000-tonne-per-year biochar unit in Maharashtra this month, with a second identical unit scheduled for completion by the end of the second quarter. These initial projects are registered under the Isometric standard and are expected to produce a combined 6,000 tonnes of biochar annually. The resulting carbon credits will be made available to international buyers through the Germany-based marketplace Carbonfuture GmbH.

The primary challenge addressed by this initiative is the environmental and economic inefficiency of agricultural waste management in India’s cotton-growing regions. Cotton stalks are traditionally treated as waste and are often burned in open fields, contributing to severe seasonal air pollution and the loss of organic matter. Furthermore, smallholder farmers frequently lack access to affordable, high-quality soil amendments, leading to soil degradation and stagnating crop yields. Balancing the high cost of feedstockFeedstock refers to the raw organic material used to produce biochar. This can include a wide range of materials, such as wood chips, agricultural residues, and animal manure. More collection with the need for a stable, long-term biomassBiomass is a complex biological organic or non-organic solid product derived from living or recently living organism and available naturally. Various types of wastes such as animal manure, waste paper, sludge and many industrial wastes are also treated as biomass because like natural biomass these More supply remains a critical hurdle for industrial-scale carbon removal projects.

To resolve these issues, Varhad Capital has implemented an integrated biomass-to-biofuel and carbon dioxide removal (CDR) model. The company utilizes proprietary pyrolysisPyrolysis is a thermochemical process that converts waste biomass into bio-char, bio-oil, and pyro-gas. It offers significant advantages in waste valorization, turning low-value materials into economically valuable resources. Its versatility allows for tailored products based on operational conditions, presenting itself as a cost-effective and efficient More technology to convert cotton stalks into biochar, which is then blended with organic compost to create a regulated bio-fertilizer. Looking ahead to 2027, the firm plans to establish integrated complexes that simultaneously produce biochar and “net-negative” biomethanol. This dual-output approach enhances the financial viability of the projects by allowing for the cross-subsidization of fuel costs through high-value CDR premiums, which are estimated between €250 and €300 per tonne for biomethanol-linked removals.

The outcomes of these projects include significant carbon sequestration and tangible benefits for rural Indian communities. The first two units alone are projected to generate over 120,000 carbon credits over a 10-year period, while the planned 2027 expansions are expected to produce 500,000 credits over a decade. Economically, the model supports farmer cooperatives by offering €45–50 per tonne for feedstock and providing 14,000 tonnes of bio-fertilizer free of charge annually. These efforts improve soil health and enhance farmer incomes while establishing India as a growing hub for high-impact, durable carbon removal solutions.