Alt Carbon, a Kolkata-based startup focused on scaling carbon removal in India, has secured $12 million in seed funding. This investment marks a significant step forward for the company and for the carbon removal sector in India, which is poised for substantial growth in the coming years.
The funding will enable Alt Carbon to expand its operations and further develop its technology for accelerated silicate weathering, a process that permanently removes carbon dioxide from the atmosphere. The company's approach involves enhancing the natural weathering of silicate rocks, which react with atmospheric CO2 to form stable carbonates, effectively trapping the greenhouse gas.
India's potential in carbon removal is immense. A recent white paper by the Carbon Removal India Alliance (CRIA) highlighted India's unique position to become a world leader in large-scale, durable CO2 removal, potentially removing 900 million tonnes of CO2 per year. This represents a significant portion (10-30%) of the world's durable atmospheric carbon dioxide removal needs, harnessing India's natural, technological, and policy strengths.
Several factors contribute to India's favorable position in the carbon removal landscape. The country has a conducive climate, availability of required feedstock, significant agricultural lands, and affordable capital and operating costs. Moreover, carbon sequestration offered by removal projects is easier to quantify compared to avoidance projects, attracting interest from project developers.
Alt Carbon, founded in 2023 by Sparsh Agarwal and Shrey Agarwal, operates as an accelerator of natural silicate weathering for permanent carbon removal. The company has already garnered attention in the carbon removal space. While earlier reports indicated that Alt Carbon had raised $550K in seed funding, this new $12 million investment represents a major upswing in the company's growth trajectory.
The demand for carbon removal credits in India is primarily driven by international buyers, with more interest stemming from advanced economies such as Europe and the US. However, Indian corporates are also beginning to prioritize sustainability and explore carbon removal pathways to offset emissions, driven by investor and consumer expectations for credible decarbonization efforts.
Several other initiatives are underway to bolster carbon removal efforts in India. For instance, Microsoft is purchasing 1.5 million tonnes of verified carbon removal credits over 30 years from the Panna afforestation project in Madhya Pradesh, India. This project, funded by Terra Natural Capital, aims to remove three million tonnes of carbon while providing significant benefits to local communities. Google also announced plans to purchase 100,000 tons of carbon removal from a biochar project in Gujarat, India.
The growth of the carbon removal sector in India aligns with global efforts to address climate change. The IPCC's Sixth Assessment Report projects the need to remove 4.7-9.8 billion tonnes of CO2 from the atmosphere each year by 2050, even with rapid decarbonization. Carbon removal technologies and nature-based solutions will play a crucial role in achieving these targets and mitigating the impacts of climate change.
