Microsoft taps Alt Carbon in sign of India’s growing role in carbon removal

Microsoft has signed a three-year statement to bargain astir 37,000 tons of c removal credits from Indian startup Alt Carbon, marking the tech giant’s archetypal enhanced-rock weathering woody successful Asia.

Under the agreement, Alt Carbon volition present 36,920 metric tons of c dioxide removal credits by 2029 from its Darjeeling Revival Project successful eastbound India. Microsoft besides has an enactment to acquisition further volumes if the startup meets transportation and verification milestones.

The woody follows reports that suggested Microsoft — the world’s largest purchaser of carbon-removal credits — had paused parts of its carbon-removal procurement program. The institution rejected those claims, saying it remained committed to its clime goals adjacent arsenic it refined its sustainability strategy.

The statement is simply a imaginable boon for Alt Carbon, a Bengaluru-based startup founded successful 2023 that is focused connected c removal projects, including enhanced stone weathering. This method involves spreading crushed basalt and different silicate rocks connected farmland to velocity up earthy chemic reactions that assistance store c dioxide. Alt Carbon sources basalt from the Rajmahal Traps successful eastbound India and deploys it crossed farmland successful West Bengal, wherever the stone reacts with rainwater and atmospheric c dioxide to signifier unchangeable bicarbonates.

Discussions with Microsoft began successful aboriginal 2025 and culminated much than a twelvemonth aboriginal aft extended technological review, owed diligence, and declaration negotiations, Alt Carbon co-founder and President Sparsh Agarwal told TechCrunch. Microsoft besides required further monitoring, reporting, and verification (MRV) measures beyond registry requirements, including expanded data-sharing and c quantification protocols, helium said.

The woody comes arsenic buyers progressively look for proven carbon-removal projects successful a marketplace wherever verified proviso remains scarce. Hundreds of startups person emerged promising to region c dioxide from the atmosphere. However, lone a tiny fraction person delivered verified credits astatine commercialized scale.

“The occupation that exists close present is that determination are a batch of suppliers, but determination are precise fewer verified deliveries retired there,” Agarwal said. “When companies are capable to deliver, everyone wants to guarantee that they get a portion of the supply.”

Alt Carbon has issued astir 10,000 carbon-removal credits done enhanced stone weathering to date, making it the world’s largest issuance of specified credits, according to Agarwal. The startup expects to contented different 15,000 credits by the extremity of the year.

Alt Carbon operates 2 carbon-removal projects successful North Bengal, including 1 dedicated to Japanese shipping elephantine Mitsui OSK Lines and a larger programme from which Microsoft’s credits volition beryllium sourced, Agarwal said. The startup has expanded beyond beverage estates into rice-growing areas and present works with much than 35,000 farmers crossed astir 80,000 acres.

Credits nether the Microsoft statement volition beryllium issued done Isometric, a carbon-removal registry that developed an enhanced rock-weathering methodology.

The woody besides reflects the increasing relation of emerging-market suppliers successful c removal. Developers from the Global South present relationship for astir 26% of carbon-removal recognition issuances, up from astir 2% successful 2022, Agarwal said. He added that planetary buyers were often skeptical of Indian c projects erstwhile Alt Carbon launched implicit 2 years ago, but increasing issuance volumes and stricter verification standards person helped amended assurance successful the market.

The Alt Carbon statement is not Microsoft’s archetypal carbon-removal concern successful India. In January, the institution signed an statement with different Indian startup, Varaha, to acquisition much than 100,000 tonnes of c dioxide removal credits generated done biochar implicit 3 years.

Microsoft joins a roster of buyers of Alt Carbon’s credits that includes procurement coalitions specified arsenic Frontier, whose members see Google, Stripe and Shopify, and NextGen, backed by companies including UBS, Swiss Re, and Boston Consulting Group, according to registry data.

Agarwal said Alt Carbon plans to grow its deployment footprint astir fivefold implicit the adjacent 4 to 5 years from astir 80,000 acres today, arsenic request for verified carbon-removal credits grows.

Alt Carbon, which past twelvemonth raised $12 cardinal successful a effect funding circular led by tech capitalist Lachy Groom, has built its ain MRV infrastructure, including laboratories successful Bengaluru and Darjeeling that it uses to analyse ungraded and h2o samples and quantify c removal. Agarwal said improving verification capabilities and lowering measurement costs volition beryllium captious to scaling enhanced stone weathering projects successful India and beyond.