Chestnut Carbon Secures $210M Financing for Carbon-Capture Projects
Chestnut Carbon has established a $210 million credit facility, led by JP Morgan, to finance afforestation projects. This funding supports a long-term agreement with Microsoft to restore 60,000 acres of U.S. forests over 25 years, emphasizing the viability of nature-based projects as an asset class.
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Chestnut Carbon, founded in 2022 by Kimmeridge, has developed a $210 million credit facility with JP Morgan and other banks for its afforestation initiatives. The company focuses on acquiring land in the Southeast U.S. to plant trees and sell carbon credits, having planted 47 million trees across 70,000 acres.
Its contracts, notably a 25-year agreement with Microsoft for restoring 60,000 acres, demonstrate the potential of nature-based projects to secure financing similar to traditional asset classes. The company also emphasizes land ownership as a critical factor in risk assessment for lenders, providing collateral and credibility. This financing model may serve as a blueprint for future projects in the industry.
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