• Chestnut Carbon owns over 35,000 acres of degraded farmland and aims to expand its carbon credit capacity to 100 million metric tons by 2030.
  • The company recently sold 7 million carbon credits to Microsoft under a 25-year deal to restore 60,000 acres in Arkansas, Louisiana, and Texas.

Nature-based carbon removal startup Chestnut Carbon has raised $160 million in Series B funding, further advancing its mission to convert degraded farmland into thriving forests.

The funding round included participation from the Canada Pension Plan Investment Board, Cloverlay, and DBL Partners, along with university endowments, family offices, funds of funds, and other institutional investors.

Chestnut Carbon specializes in purchasing marginal and degraded farmland, restoring it with native trees, and generating carbon credits from the process. These credits are increasingly sought after by tech companies looking to offset emissions, particularly as data center expansion drives up energy consumption.

Despite the substantial capital infusion, the $160 million represents a modest sum compared to the initial commitment from private equity firm Kimmeridge, which pledged up to $200 million when Chestnut was founded. Kimmeridge, traditionally focused on oil and gas investments, identified an opportunity in the growing carbon credit market. To facilitate its entry, the firm acquired Forest Carbon Works, a startup founded by Kyle Holland, who now serves as Chestnut’s chief product officer.

Currently, Chestnut Carbon owns more than 35,000 acres of degraded farmland and pasture in the southeastern U.S. With this funding, the company aims to significantly expand its land holdings and carbon credit capacity, targeting 100 million metric tons of credits by 2030. Achieving this goal will require the restoration of hundreds of thousands of acres into forested land.

The company recently sold 7 million carbon credits to Microsoft as part of a 25-year agreement to restore 60,000 acres across Arkansas, Louisiana, and Texas. Certified by the Gold Standard for 100 years, Chestnut’s credits represent a long-term commitment to environmental restoration and climate action.

Edited by Harshajit Sarmah