#Sustainability #United States #New York #carbon removal #Chestnut Carbon

Chestnut Carbon Secures $90 Million in Additional Funding

In a significant boost to its efforts in the carbon removal sector, Chestnut Carbon has recently announced an additional funding round, securing $90 million for its Series B financing. This pivotal investment, coming from existing equity investor, the Canada Pension Plan Investment Board (CPP Investments), raises Chestnut's total Series B funding to an impressive $250 million. This move represents one of the largest capital raises within the voluntary carbon market for the year 2025.

Funding Details and Objectives

Chestnut, which specializes in nature-based carbon removal strategies, has now captured increased investor confidence, as this latest contribution adds to a previous total of $160 million announced earlier this year that also included CPP Investments as a key player. By securing this additional funding, Chestnut aims to enhance its projects and technologies dedicated to carbon sequestration.

Moreover, the company successfully closed a landmark non-recourse project finance credit facility of up to $210 million — a first-of-its-kind accomplishment in securing bank financing for U.S. voluntary carbon removal initiatives in afforestation. This credit facility is vital for furthering Chestnut's mission to transform marginal agricultural lands into rich, biodiverse ecosystems capable of storing carbon effectively.

Transformative Projects and Environmental Impact

Chestnut's current focus lies in the development of large-scale afforestation projects across southern states in the U.S., which will convert underutilized farm land into thriving forest systems. These initiatives are expected to generate Gold Standard® verified carbon credits, facilitating corporate efforts towards decarbonization and achieving net-zero emissions targets.

Bill Rogers, the Head of Sustainable Energies at CPP Investments, shared insights about this collaboration, emphasizing the significant role that high-quality, verifiable carbon removal projects play in supporting global sustainability goals. Additionally, the investment illustrates a commitment to fostering a clean energy transition while providing long-term value to CPP contributors and beneficiaries.

Investment Utilization

The fresh capital will primarily focus on two major areas: the acquisition of additional land, which now encompasses over 60,000 acres across various southern states, and advancements in technology. This includes the development of proprietary data tools and patented methodologies that enhance forest modeling and operational efficiency.

Greg Adams, Chief Financial Officer of Chestnut, expressed gratitude for the ongoing support from CPP Investments and other stakeholders. He emphasized that such investments are crucial not only for scaling Chestnut's impact but also for maintaining high standards in quality and permanence of the projects the company undertakes.

About Chestnut Carbon

Founded in 2022 and backed by energy-centric asset manager Kimmeridge, Chestnut Carbon is at the forefront of developing nature-based carbon removal credits. With an expertise rooted in various domains including forestry, carbon regulation, and land management, Chestnut is set to accelerate the transition toward net-zero emissions through innovative forest carbon offset projects. Utilizing family-owned forests and marginal agricultural land, Chestnut's vision is ingrained in environmental stewardship and responsible management.

For more information about Chestnut Carbon and its sustainable initiatives, please visit Chestnut Carbon's official website.

As the world grapples with climate change, investment in companies like Chestnut may hold the key to innovative solutions needed for a sustainable future.