Developer scores $160 million to revitalize degraded farmland: 'Another positive step'
Nature-based carbon removal developer Chestnut Carbon scored two big wins to push it closer to its carbon credit capacity goal.
With more companies committed to reducing their pollution, demand has surged for high-quality carbon credits. Carbon removal companies such as Chestnut are stepping up by selling credits to companies seeking to cancel out the pollution they generate through high-emission activities such as data center operations.
Chestnut, in particular, acquires old and degraded farmland and plants trees to transform those areas into forests. From 35,000 acres in the Southeastern United States, Chestnut hopes to have more than 100,000 acres of restored forest by 2030, according to TechCrunch. Its main goal is to increase its carbon credit capacity to around 110 million tons — a huge step toward reducing carbon pollution and achieving cleaner air.
In January, Microsoft signed a 25-year deal with Chestnut, essentially expanding an earlier agreement the two parties inked in 2023. "This agreement with Chestnut Carbon is another positive step towards Microsoft's goal to become carbon negative by 2030," Brian Marrs, senior director of energy and carbon removal at Microsoft, said.
The deal grants Microsoft seven million carbon credits, according to TechCrunch. Chestnut has already allocated funds to purchase and rehabilitate 60,000 acres of land in Arkansas, Texas, and Louisiana.
A couple of weeks after the Microsoft deal, Chestnut announced it raised $160 million in Series B funding for expanding its mission of restoring degraded farmland into thriving forests. Led by the Canada Pension Plan Investment Board, which committed $30 million, the investment round also included backing from Cloverlay, DBL Partners, and others.
Chestnut's goal to reach roughly 110 million tons in carbon credits represents a meaningful contribution to a more resilient future. Its efforts also benefit consumers by helping create cleaner air and contributing to healthier communities.
With increasing investments in carbon removal strategies, the transition to a greener Earth is becoming more feasible. As corporations such as Chestnut and Microsoft take action and lead the way to a more eco-friendly future, consumers can also do their part by supporting eco-friendly initiatives.
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