Chestnut Carbon Secures $160M To Scale Carbon Removal

Chestnut Carbon, a preeminent U.S.-headquartered nature-based carbon removal project developer, closed a $160 million Series B round. This funding will step up the pace of the company's afforestation efforts, underpinning its objective of sequestering 100 million tons of carbon across the lifetime of its Sustainable Restoration Project.

The funding round involves contributions from the Canada Pension Plan Investment Board, a repeat investor, in addition to new investors like Cloverlay and DBL Partners. Chestnut was also supported by university endowments, family offices, fund of funds, and other institutional investors through its founding company, Kimmeridge. The huge funding is testament to the increased investor faith in high-integrity carbon removal activities that help deliver corporate sustainability and net-zero aspirations.

Established in 2022, Chestnut Carbon was founded with the mission of bridging an important gap in the carbon offsetting market by providing nature-based, high-integrity solutions. The firm is focused on converting underutilized pasture and agricultural land into productive forests, which act as carbon sinks while restoring biodiversity and increasing ecosystem resilience. The carbon credits earned by these projects are compliant with the stringent Gold Standard® certification, guaranteeing they are verifiable and useful for corporations working towards decarbonization objectives.

Ben Dell, CEO of Chestnut Carbon and Managing Partner and Co-Founder of Kimmeridge, highlighted the importance of the company's history since its launch. "As we started Chestnut in 2022, we worked hard to plug an important gap by providing high-integrity, nature-based carbon offset solutions. It is incredibly gratifying to have achieved what we have since then, launching a differentiated product to market," he added.

The newly raised capital will be optimally invested across major sectors such as land purchases, technology innovation, and expansion of talent. Since its establishment, Chestnut Carbon has successfully acquired over 35,000 acres of land in six states—Arkansas, Louisiana, Alabama, Mississippi, Oklahoma, and Texas—and set the foundation for mass-scale afforestation endeavors. The company will be in a position to purchase more land with the fund, thus creating room for expedited growth as well as expanding carbon sequestration capacity.

A substantial amount of the investment will also be used to further develop Chestnut's proprietary data models and patented technologies. These technologies are critical to optimizing land selection, forest inventory collection, and carbon modeling, improving the accuracy and efficiency of the company's operations. Through the use of advanced technology, Chestnut seeks to enhance the credibility and transparency of its carbon credits, making them the preferred option for companies that are sustainability-focused.

The other important area of focus is talent acquisition. The firm intends to increase its workforce in different areas, such as forestry, carbon management, finance, and land management. Through the recruitment of top professionals in these areas, Chestnut hopes to enhance its capabilities and expertise to execute its massive afforestation projects successfully.

Nancy Pfund, DBL Partners' Managing Partner and Founder, emphasized the wider significance of the investment in Chestnut Carbon. "Through our investment in Chestnut, we envision the potential to set a higher standard by assisting in the development of the industry leader in offering high-quality carbon offsets at scale, bringing economic and quality-of-life benefits to rural communities, and opportunities to build the health and resilience of our land," she said.

Kendra Corbett, Cloverlay Partner, shared similar views, highlighting the company's contribution to making significant environmental progress. "Chestnut's groundbreaking approach to carbon removal solutions and quantifiable environmental impact are leading the way to a more sustainable future, and we are honored to partner with them to assist in scaling their work and making meaningful progress," she added.

The investment represents a milestone for Chestnut Carbon and solidifies its status as a market leader in carbon offsets. As companies increasingly seek high-quality, verifiable carbon credits, the scalable solutions of the company provide business a solid channel through which to fulfill their climate goals. By converting large tracts of underutilized land into reforested lands, Chestnut not only sequesters carbon but also increases biodiversity, improves soil quality, and boosts rural livelihoods.

The wider importance of Chestnut Carbon's activity is its capacity to close the gap between business climate commitments and actual action. Numerous corporations have made ambitious net-zero promises, but accessing high-quality, high-integrity carbon offsets continues to be a challenge. The Gold Standard® verified credits from Chestnut offer a solution that is aligned with international sustainability objectives, allowing businesses to offset their carbon emissions in an effective manner that is also environmentally sound.

While the world struggles to contend with the immediacy of climate change, investments in nature-based climate solutions such as afforestation are taking hold. Trees are one of the most effective carbon removal devices available, taking in CO₂ while offering other environmental benefits. Chestnut Carbon's mass afforestation effort is proof of what the private sector can do to end the climate crisis. Through obtaining substantial financial support and the use of sophisticated technology, the firm is positioned to make long-term environmental difference.

Through this new funding round, Chestnut Carbon will further expand its activities, realizing its vision of regenerative land restoration and high-quality carbon offsets. As companies, investors, and governments increasingly seek climate action, efforts such as Chestnut's provide a workable path to a more sustainable and resilient future.