Chestnut Raises $160 Million to Scale Farm-to-Forest Carbon Removal Projects
Nature-based carbon removal startup Chestnut Carbon announced that it has raised $160 million in a Series B financing round, with proceeds to be used to scale capacity and sequester an estimated 100 million tons of carbon over the life of its Sustainable Restoration Project.
Launched in 2022 by energy sector-focused alternative asset manager Kimmeridge, Chestnut helps reduce carbon emissions by planting and developing long-term forest projects in the U.S. that create biodiverse ecosystems and community benefits. Chestnut acquires marginal crop and pasture lands, and partners with local foresters, nurseries, and community members to develop an ideal forest ecosystem based on native tree species, soil, drainage, and community land use.
Its Sustainable Restoration Project generates carbon credits to support sustainability-oriented corporations committed to decarbonization and net zero goals. Last month, the company announced a new 25-year offtake agreement with Microsoft, providing the tech giant with more than 7 million tons of nature-based carbon removal credits, generated from its forest projects in the Southern U.S.
Ben Dell, CEO of Chestnut and Founder and Managing Partner of Kimmeridge, said:
“When we launched Chestnut in 2022, we endeavored to fill a critical void by offering high-integrity, nature-based carbon offset solutions. It is extremely rewarding to see what we have achieved since then, bringing a differentiated offering to the market. The Series B financing allows us to continue to build out our platform to meet the growing needs of sustainability-conscious organizations and advance our position as a leading provider in the international carbon markets.”
Since 2022, Chestnut has acquired over 35,000 total acres of underutilized agricultural and pastureland in 6 states (Arkansas, Louisiana, Alabama, Mississippi, Oklahoma, and Texas), and plans to use the funding to increase land purchases. The new funding will also support the use of data models that predict growth patterns by species, ensuring forests deliver the expected carbon removal credits. Chestnut added that it also plans to hire more talent to support its work in forestry, carbon regulation, environment, finance, and land management.
The financing round includes existing investor Canada Pension Plan Investment Board, as well as new investors, Cloverlay and DBL Partners. Additional participation came from limited partners of Chestnut’s founding firm, Kimmeridge, including university endowments, family offices, funds of funds, and other institutional investors.
Nancy Pfund, Founder and Managing Partner at DBL Partners, said:
“With our investment in Chestnut, we see the potential to raise the bar by helping to create the industry leader in providing high-quality carbon offsets at scale, delivering economic and quality-of-life benefits to rural communities, and opportunities to strengthen the health and resilience of our land.”