India-based carbon-project developer Varhad Capital is sharply increasing its carbon-removal capacity using biochar and biomethanol pathways as it builds an integrated biomass-to-biofuel and CO2 removal (CDR) model.
Varhad is set to commission its first 3,000 t/yr biochar unit by February, with a second similar unit scheduled for completion by the end of the second quarter this year in Maharashtra, Varhad Capital founder Prasad Dahapute told Argus.
The two units are registered under the Isometric standard and will together produce 6,000 t/yr of biochar from cotton stalks. This will be blended with organic compost to produce a bio-fertilizer approved under Indian agricultural regulations. The project will generate more than 120,000 carbon credits over its 10-year crediting period, available through Germany-based CDR marketplace Carbonfuture GmbH.
Varhad plans to more than double its biochar output by 2027 with expansions at its planned integrated biochar-and-biomethanol complexes. These will feature two plants, each producing 10,000 t/yr of biochar and 10,000 t/yr of biomethanol.
The facilities will use Varhad's pyrolysis technology to generate both products at the same site and are scheduled for commissioning in November-December 2026, with full operations beginning 1 January 2027. The projects are set to complete their final investment decision (FID) by the end of this month. Once operational, the facilities will produce a combined 20,000 t/yr of biochar and roughly 50,000 credits/yr — totalling around 500,000 credits over the next decade, Dahapute said.
The scaled-up units could produce nearly 44,000 t/yr of bio-fertilizer. The company would distribute roughly 14,000 t/yr free to farmer cooperatives that supply feedstocks such as cotton stalks. Farmers and cooperatives could collectively earn an average of €45–50/t ($53-59/t) for the feedstock. The cost is comparatively high but supports stable supply and social co-benefits, Dahapute noted. Varhad will sell around 30,000 t/yr of bio-fertilizer on the spot market to afforestation and regenerative-agriculture project developers in India.
Production of "net negative" biomethanol from the integrated plants also enhances project value, Dahapute said. Varhad expects CDR premiums of €250–300/t ($297-356) for its biomethanol-linked removals, as each tonne of fuel will generate 1.8-2t CO2e of certified CDR credits. The company discounts the credit value from the biomethanol price, so higher pricing directly lowers the effective fuel cost for buyers. Varhad positions the pathway as "high-impact", citing additionality across biofuel affordability, soil benefits and enhanced farmer incomes. On a comparable basis, the embedded biochar component equates to roughly $125-150/t CO2e range.
The firm holds a letter of intent (LoI) with a Singaporean bunker-fuel buyer. It also has "definitive agreements" with two Germany-based firms focused on the Renewable Energy Directive III (RED III) and is in talks with a third buyer in the Netherlands, Dahapute said.
