Carbon credits surge in demand as tech giants race to offset emissions from energy-hungry data centres fueling AI and cloud expansion. With stricter climate targets, high-integrity carbon removal solutions are becoming a critical tool for corporate sustainability strategies. We have already seen several companies in this sector bag funding, including Heirloom, CEEZER, and Aerleum.
Major investment in carbon removal
Now, New York-based Chestnut Carbon, a nature-based carbon removal company, has raised $160 million in a Series B funding round to accelerate its ambitious reforestation projects. The 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. This investment highlights the growing demand for high-integrity carbon offsets.
How will it use the investment
The latest funding will help scale its operations, acquire and restore more land, and refine its carbon credit verification processes. Also, Chestnut Carbon aims to expand its footprint across the U.S. and potentially beyond.
- Land purchases: Land purchases enable rapid project execution. Chestnut has acquired over 35,000 total acres of underutilised agricultural and pastureland in 6 states (Arkansas, Louisiana, Alabama, Mississippi, Oklahoma, and Texas).
- Technological innovation: Chestnut utilises data models that predict growth patterns by species, ensuring forests deliver the expected carbon removal credits. Its integrated suite of proprietary data tools and patented technology streamlines land acquisition, member enrollment, forest inventory collection, and carbon modeling. Continued investment in this platform enables Chestnut to operate cost-effectively and maintain its high standards of data accuracy.
- Talent investment: Chestnut’s expertise comes from a seasoned team, whose diverse backgrounds include forestry, carbon regulation, environment, finance, and land management. As the project expands, more experienced talent will be needed to support Chestnut’s growth and high standards for quality.
A team with deep expertise
Chestnut was founded in 2022 by Kimmeridge, an alternative asset manager based in New York. Ben Dell, Chestnut’s founder and CEO and Managing Partner at Kimmeridge, has a track record of driving net-zero commitments, including through leadership roles in public energy companies. Through his previous work, he recognised a growing need for high-quality removal credits that are local and truly additional.
Dr. Kyle Holland, Chief Product Officer and founder of EP Carbon and Forest Carbon Works (acquired by Chestnut Carbon in 2022) brings more than 15 years’ of experience working with forest carbon projects and registries. A dedicated team of national foresters, technical carbon analysts, project managers, and seasoned executives in finance and commercial leadership round out the Chestnut team.
Reforestation as a scalable carbon solution
Chestnut Carbon focuses on large-scale afforestation, targeting degraded agricultural land for restoration. By planting forests on millions of acres, the company not only captures carbon but also revitalises ecosystems, improves water retention, and enhances soil health. This nature-based approach aligns with the increasing corporate demand for durable, high-quality carbon credits that go beyond traditional offset programs.
The company’s proprietary land assessment and carbon modeling technologies enable it to optimise reforestation efforts, ensuring the long-term viability of its projects. With strict verification and third-party monitoring, Chestnut Carbon aims to set new standards for transparency and permanence in the carbon offset industry.
Sets new industry standards
With this fresh capital infusion, The company’s focus on science-backed, large-scale forest restoration could serve as a model for future carbon removal initiatives. However, challenges remain, including securing large tracts of land, navigating regulatory frameworks, and ensuring long-term maintenance of the newly planted forests.
As corporations increasingly turn to carbon offsets to meet sustainability goals, the demand for verifiable and durable carbon removal solutions will continue to grow. Chestnut Carbon’s approach combines land restoration with rigorous scientific validation and positions it as a leader in this space. The $160 million funding marks a significant milestone, not just for the company but for the broader movement toward nature-based climate solutions.
“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,” said Ben Dell, CEO of Chestnut and Founder and Managing Partner of Kimmeridge. “The Series B financing allows us to continue to build out our platform to meet the growing needs of sustainability-conscious organisations and advance our position as a leading provider in the international carbon markets.”
“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,” said Nancy Pfund, Founder and Managing Partner at DBL Partners.
“Chestnut’s innovative approach to carbon removal solutions and measurable environmental impact are paving the way for a more sustainable future, and we are proud to partner with them to help scale their efforts and drive meaningful progress,” said Kendra Corbett, Partner at Cloverlay.
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