Chestnut Carbon has secured an additional $90 million from its existing investor, the Canada Pension Plan Investment Board, boosting its Series B round to a total of $250 million. Earlier this year, the company announced $160 million in Series B funding, and this latest investment underscores growing confidence in Chestnut’s work to remove carbon through new forest growth.
Alongside the equity raise, Chestnut closed a landmark, non-recourse project finance credit facility of up to $210 million. This facility marks the first time a U.S. voluntary carbon removal afforestation project has received dedicated bank financing without recourse to the sponsor’s balance sheet. It provides Chestnut with long-term, project-level support to plant and manage forests that capture carbon dioxide.
Chestnut Carbon specializes in turning underutilized crop and pasture lands into permanent, biodiverse forests. Rather than relying on temporary offsets or energy-intensive technologies, the company focuses on nature-based solutions that involve growing trees capable of storing carbon for decades or longer. These forests are certified under the Gold Standard, ensuring that each ton of carbon dioxide removed meets rigorous environmental and social criteria.
Since its founding, Chestnut has acquired over 60,000 acres spread across eight states in the southern United States. By targeting marginal lands—areas that struggle to generate reliable crop yields—Chestnut not only captures carbon but also creates new habitats for wildlife, improves soil health, and supports local economies through land stewardship and timber management practices.
A key part of Chestnut’s approach is its investment in proprietary data tools and patented systems. These technologies enable precise forest modeling, helping predict growth rates, carbon capture potential, and optimal planting patterns. Automated monitoring systems track tree health and growth in real time, allowing the team to adjust management strategies for maximum carbon removal and biodiversity benefits.
With the combined equity and project financing in place, Chestnut Carbon is positioned to accelerate its planting schedules, expand its operational teams, and refine its technological platform. And the company can now move more quickly from land acquisition to tree planting and long-term forest management, ensuring that its projects deliver verified carbon removal at scale.
KEY QUOTES:
“This additional investment in Chestnut exemplifies CPP Investments’ commitment to finding superior investment opportunities across the energy value chain. 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.”
Bill Rogers, Head of Sustainable Energies at CPP Investments
“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. 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.”
Greg Adams, Chief Financial Officer of Chestnut
