Jain Irrigation Systems has signed a deal with carbon marketplace Supercritical to supply 19,000 tonnes of biochar credits. The company will produce these at its Jalgaon facility by converting agricultural waste, marking a new revenue stream for the business.
Jain Irrigation Systems is entering the global carbon removal market by signing a supply agreement with UK-based platform Supercritical. Under this arrangement, the company will provide up to 19,000 tonnes of biochar credits, which serve as verified certificates for carbon removed from the atmosphere.
These credits are produced at the company’s facility in Jalgaon, which has been operational since early 2026. The plant uses a process known as gasification to convert crop residues and food processing waste into biochar. This material acts as a stable soil amendment that traps carbon. A key feature of this process is the production of syngas as a byproduct, which the company uses to replace fossil fuels in its own operations, while the biochar is distributed to internal agricultural divisions and regional farmers.
From a business strategy perspective, this model allows the company to monetize agricultural waste, turning it into energy for internal use and a salable product in the form of carbon credits. This initiative leverages the company’s existing infrastructure and its historical experience in micro-irrigation and tissue culture to support a new environmental service line.
While this initiative opens a new revenue stream, it is important to consider the context of the carbon market. The industry is currently facing a supply-constrained environment, which has driven corporate interest in these credits. However, the market for voluntary carbon credits is still evolving, and regulatory frameworks are subject to change. Investors should note that the contribution of carbon credits to the company’s overall revenue is likely small compared to its core irrigation and food processing segments.
Operational success will depend on the company’s ability to maintain certification standards. The project is currently undergoing verification through Puro.earth, with a rating from BeZero Carbon in progress. Any delay or issue in achieving or maintaining these certifications could impact the ability to sell these credits at premium rates. Additionally, scaling these projects requires consistent operational efficiency at the plant level. The primary monitorable for investors will be whether this model can be scaled effectively and how it contributes to the bottom line in future quarterly results.