Sow & Reap Chara, Sagar Cements Sign 10-Year Agreement to Drive Low-Carbon Cement Manufacturing

Hyderabad: Sow & Reap Chara Pvt Ltd, a Hyderabad-based climate-tech company, and Sagar Cements Limited, a leading cement manufacturer, have signed a 10-year offtake agreement to accelerate decarbonisation in cement production. As part of the collaboration, Integrated Biochar and Gasification Units will be set up at Sagar Cements’ plant in Mattampally, Telangana.

The project aims to decarbonise the energy-intensive calcination stage of cement manufacturing and aligns with Sagar Cements’ goal of achieving a significant reduction in net-zero emissions by 2030.

Under the initiative, syngas generated through gasification will be used by Sagar Cements as an alternative fuel, while biochar produced will be supplied to farmers for use as manure. This approach will reduce greenhouse gas (GHG) emissions by replacing fossil fuels with sustainable alternatives and supplying thermal energy through syngas injection. The project will also curb air pollution caused by open-field burning of cotton crop residues while simultaneously removing CO₂ from the atmosphere through long-term carbon storage in biochar.

The initial deployment is expected to reduce approximately 6,000 tonnes of carbon emissions annually, with the potential to increase this to 25,000 tonnes per year through the installation of four such units at a single location. The model will be replicated across all Sagar Cements and subsidiary manufacturing units nationwide.

This initiative represents a significant leap in integrating cutting-edge climate technologies into cement manufacturing, setting a new benchmark for low-carbon cement production by reducing emissions, transitioning away from fossil fuels, and increasing clean energy utilisation.

Under Project ‘CHARA’, Sow & Reap Chara will collect agricultural crop residues—primarily cotton waste—from local villages within a 20-km radius of the cement plant. These residues, often burned after harvest, will be processed sustainably to produce syngas and biochar, improving soil health while reducing air pollution.

Commenting on the collaboration, Mr. Suraj Teja, Founder and CEO, Sow & Reap Chara Pvt Ltd, said,
“This collaboration with Sagar Cements Limited demonstrates how climate-tech innovation can be seamlessly integrated into energy-intensive industries. 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 that Sow & Reap Chara plans to establish 20 gasification units in a phased manner, with four units under Phase-1 expected to go live by March 2026. Each unit will process approximately 15,000 tonnes of biomass annually, producing around 3,750 tonnes of biochar, mitigating nearly 8,000 tonnes of CO₂ emissions per unit. The resulting carbon credits will be made available to corporates and industries seeking emission offsets. Once all 20 units are operational, the company aims to issue around 160,000 carbon credits annually, targeting nearly one million credits over the next five years.

Mr. S. Sreekanth Reddy, Joint Managing Director, Sagar Cements Limited, said,
“By integrating Sow & Reap Chara’s innovative gasification technology, we are supporting advanced methods to reduce our carbon footprint while contributing positively to society at large.”

Key stakeholders in the project include Ankur Scientific (technology provider), Cula Tech (Germany-based dMRV provider), Puro.Earth (carbon registry), and an extensive local farmer network, which plays a critical role in biomass sourcing.