News provided by Chestnut Carbon
Jan 30, 2025, 09:30 ET
Chestnut Carbon has entered a new long-term agreement with Microsoft to provide high-quality, nature-based carbon removal from its afforestation, reforestation, and revegetation (ARR) project in the Southern U.S. This agreement, one of the largest ARR offtakes in the U.S., spans 25 years and will deliver over 7 million tons of carbon removal credits.
NEW YORK, Jan. 30, 2025 /PRNewswire/ — Chestnut Carbon (“Chestnut”), a nature-based carbon removal developer, today announced a new long-term offtake agreement to provide Microsoft with high-quality, nature-based carbon removal derived entirely from Chestnut’s ARR project located in the Southern United States, including Arkansas, Texas, and Louisiana.
This agreement reflects one of the largest carbon removal projects in the U.S., inclusive of both nature-based and engineered solutions, and is in addition to the initial agreement executed between Chestnut and Microsoft in December 2023. This new carbon removal purchase agreement involves multiple phases with forward-starting 25-year terms that will result in more than 7 million tons of U.S.-based carbon removal credits delivered to Microsoft over the offtake term. The agreement is estimated to restore roughly 60,000 acres of land by planting over 35 million native, biodiverse hardwood and softwood trees.
“We’re excited to be expanding our collaboration with Microsoft given their market leadership in net zero commitments and the signing of a second agreement within the span of a year reaffirms their view that Chestnut is delivering high quality removal credits,” said Ben Dell, CEO of Chestnut and Managing Partner of Kimmeridge. “We’re confident in our belief that nature-based afforestation solutions are the most attractive, scalable, and cost-effective means for removing carbon from the atmosphere today. We continue to bring high-quality credits to market for discerning customers and look forward to building on our leading position in the market.”
The Chestnut Sustainable Restoration Project is distinguished among nature-based projects in the U.S. due to its focus on creating a long-lasting ecosystem of native forests at scale. With Microsoft’s offtake from the project, Chestnut is on track to grow its ARR portfolio to 500,000 acres by 2030 and remove 100 million tons of CO2 from the atmosphere over a 50-year crediting period.
“This agreement with Chestnut Carbon is another positive step towards Microsoft’s goal to become carbon negative by 2030. We look forward to the prospect of scaling forest restoration within the United States, attracting sophisticated private capital in the process. We are glad to see the Sustainable Restoration Project diversify the ecological impact of our global carbon removal portfolio,” said Brian Marrs, Senior Director of Energy & Carbon Removal at Microsoft.
Key to Chestnut’s Sustainable Restoration Project:High quality, removal-based credits: The project is registered with Gold Standard. Resulting credits are issued per carbon removal measurements, not emissions avoidance;
Durability: Chestnut stands behind the durability of its carbon sequestration through long-term conservation of the land, planting biodiversity and risk mitigation practices;
Additionality: The project restores marginal agricultural lands to native forests. These lands would not be restored in the absence of the global carbon credit market; and
Environmental and stakeholder benefits: The project delivers improvements to native wildlife habitats and air and water quality; expands land use alternatives; and emphasizes ongoing community engagement and economic development.
About Chestnut Carbon
Chestnut Carbon (“Chestnut”) is a leading developer of nature-based carbon removal credits. Founded in 2022 with the support of energy-focused alternative asset manager Kimmeridge, Chestnut generates high-quality U.S.-based forest carbon offsets that are additional and verifiable to accelerate the path to net zero across a range of industries. Chestnut uses a proprietary approach to developing forest carbon offset projects on family-owned forestland and marginal crop and pastureland. Chestnut’s expertise is driven by an experienced team, whose diverse backgrounds include forestry, carbon regulation, environment, finance and land management. For additional information on Chestnut, its strategies and environmental stewardship, please visit https://chestnutcarbon.com/.
Media:
Chris Allieri
Mulberry & Astor
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646-245-8937
SOURCE Chestnut Carbon