Nature-based carbon removal developer Chestnut Carbon has secured an additional $90 million for its Series B financing, increasing the originally raised total amount from $160 million to $250 million.
This additional financial injection was provided by equity investor Canada Pension Plan Investment Board (CPP Investments), who also provided the financing secured in the initial Series B funding round.
As a carbon dioxide removal (CDR) supplier, Chestnut Carbon works with family-owned forestlands and marginal crop and pastureland in the United States, where it develops afforestation projects.
Its operations are expected to generate high-quality carbon removal credits verified by Gold Standard, which will be available to companies looking to advance on their net-zero journeys.
The funding raised in the company’s Series B round will enable further development in two key areas.
One of the areas is the purchase of land, which will add to the company’s existing 60,000 acres acquired across eight southern U.S. states.
The second focus area for the funds is technological innovation, where Chestnut Carbon will work on proprietary data tools and patented systems for improved forest modeling and optimized operational efficiency.
With this secured Series B funding and the company recently appointing Brian DiMarino as the new chief operating officer (COO), Chestnut Carbon is gearing up for the next chapter of operations.
Chief financial officer (CFO) Greg Adams commented, “We are grateful for the follow-on investment by CPP Investments, which, along with the support we have received from other investors, is critical to scaling Chestnut’s impact while maintaining our high standards for quality and permanence.”
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“We’re committed to helping our customers meet their decarbonization goals and ensuring that they can rely on us as their trusted partner in the process.”
On behalf of CPP Investments, Head of Sustainable Energies Bill Rogers shared that this additional investment exemplifies their commitment to finding superior investment opportunities across the energy value chain.
He stated, “Our continued support of Chestnut and Kimmeridge’s pioneering work underscores our belief that high-quality, verifiable carbon removal projects will play a critical role in supporting global decarbonization goals while generating long-term value for CPP contributors and beneficiaries.”
Read more: JPMorgan To Provide Pioneering Financing For Chestnut Carbon’s Afforestation Operations
