Hyderabad: Sow & Reap Chara, Sagar Cements partner to set up biochar, gasification units in Mattampally

Hyderabad: Hyderabad-based climate-tech company Sow & Reap Chara Pvt Ltd has signed a 10-year offtake agreement with Sagar Cements Limited to set up integrated biochar and gasification units.

The units will be set up at Sagar Cements’ Mattampally plant in Telangana.

The partnership aims to reduce emissions from the energy-intensive calcination stage of cement manufacturing and support Sagar Cements’ target of lowering its net-zero emissions by 2030.

Under the agreement, agricultural crop residues, primarily cotton waste sourced from villages within a 20-km radius of the plant, will be processed to produce syngas and biochar. The syngas will be used as an alternative fuel in cement production, while the biochar will be supplied to farmers for use as manure.

Using Syngas to Cut Emissions in Cement Production

The project will substitute fossil fuels with biomass-derived syngas to provide heat for cement manufacturing. According to the companies, this will reduce greenhouse gas emissions associated with calcination and help limit air pollution caused by open-field burning of crop residues.

The initial deployment is expected to directly reduce around 6,000 tonnes of carbon emissions annually. With four such units operating at one location, the reduction could increase to approximately 25,000 tonnes per year. The same model will be replicated across Sagar Cements’ and its subsidiaries’ manufacturing units in India.

Biochar for Carbon Removal and Soil Health

The gasification process will also produce biochar, which stores carbon for long periods when added to soil. This contributes to long-term carbon removal while improving soil quality for farmers.

Each gasification unit is expected to process about 15,000 tonnes of biomass annually, producing roughly 3,750 tonnes of biochar. This, in turn, is projected to mitigate around 8,000 tonnes of CO₂ emissions per unit per year.

Phase-wise Rollout and Carbon Credit Plans

Sow & Reap Chara will establish 20 gasification units in a phased manner. Phase 1 will include four units, expected to go live in March 2026.

With all 20 units operational, the company plans to target an annual issuance of around 160,000 carbon credits, with a cumulative target of close to one million credits over the next five years. These credits will be available to corporates and other industries seeking to offset their emissions.

Industry and Founder Comments

“This collaboration with Sagar Cements Limited demonstrates how climate-tech innovation can be seamlessly integrated into energy-intensive industries,” said Suraj Teja, Founder and CEO, Sow & Reap Chara Pvt Ltd.

“By replacing conventional fossil fuels with biomass-derived syngas, we are helping the cement industry lower emissions while simultaneously creating value for local farming communities,” he added.

Teja further said, “Sow & Reap Chara Pvt Ltd shall establish 20 such gasification units in a phased manner, with four such units installed in Phase 1 expected to go live in March 2026. One such gasification unit would process annually around 15,000 tons of biomass, leading to the production of roughly 3,750 tons of biochar, which in turn translates to mitigating around 8,000 tons of CO₂ emissions. The carbon credits thus issued will be available for corporates and other industries who would like to offset their emissions. With all 20 such installations going live, we will be targeting an annual issuance of around 160,000 carbon credits, targeting close to 1 million credits over the next five years.”

Commenting on the project, S. Sreekanth Reddy, Joint Managing Director, Sagar Cements Limited, said,

“By integrating Sow & Reap Chara’s innovative gasification technology, we are supporting innovative methods to reduce carbon footprint for us as well as society at large.”

Technology and Implementation Partners

The project brings together multiple stakeholders. Ankur Scientific is the technology provider for the gasification process. Cula Tech, a Germany-based company, will provide digital monitoring, reporting, and verification (dMRV) services. Puro Earth will serve as the carbon registry.

The companies also highlighted the role of the local farmer network, which will supply biomass and benefit from the distribution of biochar.

Replication Across Sagar Cements’ Plants

The integrated biochar and gasification model developed at Mattampally will be replicated across Sagar Cements’ and its subsidiaries’ manufacturing units in different parts of India.

The partners said this approach could set a replicable framework for decarbonisation in energy-intensive industrial sectors.