Google inks deal with TPC-backed Indian startup to buy carbon removal credits
The sale is the largest to date involving biochar – a type of modified charcoal – and marks the tech giant’s first foray into the subcontinent’s carbon dioxide removal industry
GOOGLE has bought 100,000 carbon dioxide removal (CDR) credits from Varaha – to be delivered by 2030 – for an undisclosed amount.
Varaha is an Indian startup that works with smallholder farmers and develops carbon removal projects in Asia across categories that include regenerative agriculture, afforestation, biochar and enhanced rock weathering. It is backed by Tsao Pao Chee (TPC), a family business in Singapore helmed by Chavalit Frederick Tsao.
The deal, announced on Thursday (Jan 16), is the largest to date that involves this type of modified charcoal. It also marks the tech giant’s first foray into India’s carbon dioxide removal industry.
Randy Spock, Google’s carbon removal lead, said: “Biochar is a promising approach to carbon removal, because it has the ability to scale worldwide, using existing technology, with positive side effects for soil health.”
When biomass (such as agricultural residue) is burnt in the absence of oxygen and at high temperatures, it turns into a condensed carbon compound called biochar.
Ikarus Janzen, chief commercial officer of Varaha, said that biochar can remove carbon from the atmosphere for more than a millennium. He noted that as corporate demand for durable carbon removal credits rises, it represents an attractive option due to its permanence and affordability.
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Madhur Jain, co-founder and CEO of Varaha, added that through the initiative, it is hoped that the “viability of partnering with smallholder farmers on carbon-removal projects is proven – which can inspire similar initiatives globally”.
According to MSCI, some buyers of biochar include JPMorgan and Nasdaq. The average price for 2023 was around US$150 per tonne of carbon dioxide equivalent.
Scalable, nature-based climate solution
TPC invested in Varaha through its Octave Well-being Economy Fund. Venture partner Axel Tan said: “This milestone with Google highlights the growing viability of biochar as a scalable, nature-based climate solution; and demonstrates the critical role of high-quality carbon credits in enabling these efforts.
“By empowering smallholder farmers to integrate biochar into sustainable agricultural practices, Varaha is creating a model that aligns economic resilience with ecological restoration. We remain dedicated to funding impactful ventures that advance the transition to a well-being economy.”
Jain said: “We are the largest Indian company in the domain of biochar credits, and have also sold (them) to (companies such as) Swiss Re… among others.”
Varaha has produced about 25,000 biochar credits in 2024, and Jain said that there are plans to work with other companies on similar initiatives.
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