Microsoft has entered into an agreement with Indian startup Varaha to purchase more than 100,000 tons of carbon dioxide removal credits over the next three years. This move is part of Microsoft’s efforts to increase its carbon removal projects while scaling up its AI and cloud operations.
The initiative with Varaha aims to convert cotton crop waste into biochar, a substance that can store carbon in soil for extended periods, while also reducing air pollution from the burning of agricultural waste. Initially focusing on Maharashtra, India, the project will involve approximately 40,000–45,000 smallholder farmers.
As major corporations like Microsoft invest in carbon removal projects, the tech industry is seeing a surge in initiatives aimed at physically extracting carbon dioxide from the atmosphere. Microsoft, which aims to achieve carbon negativity by 2030, experienced a 23.4% increase in greenhouse gas emissions in fiscal year 2024, primarily due to the expanding cloud and AI business.
With the growing energy consumption and emissions associated with AI operations, companies are exploring opportunities for carbon removal projects beyond the U.S. market. India, with its abundant agricultural waste and vast farming economy, has emerged as an appealing destination for such ventures.
Varaha plans to develop 18 industrial reactors that will be operational for 15 years, collectively anticipated to remove over 2 million tons of carbon dioxide throughout the project’s lifespan.
Source: TechCrunch