Chestnut Carbon, a nature-based carbon removal developer, has announced a long-term carbon removal offtake agreement with Microsoft, expanding their existing partnership to support large-scale reforestation efforts in the Southern United States.
The agreement, one of the largest carbon removal projects in the US, builds on an initial deal signed in December 2023. It will see Chestnut provide Microsoft with more than 7 million tonnes of US-based carbon removal credits over multiple phases, each with a forward-starting 25-year term. The initiative will restore approximately 60,000 acres of land through the planting of over 35 million native hardwood and softwood trees across Arkansas, Texas, and Louisiana.
Chestnut’s Sustainable Restoration Project is among the most significant nature-based carbon removal initiatives in the country, aiming to establish long-term forest ecosystems on degraded agricultural land.
Ben Dell, CEO of Chestnut Carbon and Managing Partner of Kimmeridge, described the expanded partnership as a strong endorsement of nature-based solutions for carbon removal. “We are pleased to be expanding our collaboration with Microsoft, a leader in net-zero commitments. The signing of a second agreement within a year reaffirms their confidence in Chestnut’s ability to deliver high-quality removal credits. We firmly believe that afforestation solutions offer the most scalable and cost-effective approach to carbon removal today.”
The project aligns with Microsoft’s goal of becoming carbon negative by 2030, with Brian Marrs, Senior Director of Energy & Carbon Removal, highlighting its role in diversifying the company’s global carbon removal portfolio.
“This agreement with Chestnut Carbon represents another positive step towards our carbon-negative ambition. We look forward to scaling forest restoration efforts within the United States while attracting private capital to support nature-based solutions.”
The project is registered with Gold Standard, ensuring credits are issued based on carbon removal measurements, rather than emissions avoidance. The land is conserved through biodiversity planting and risk mitigation measures to ensure the durability of carbon storage. The project restores marginal agricultural land into native forests, which would not occur without the global carbon credit market. It contributes to wildlife habitat restoration, air and water quality improvements, expanded land-use alternatives, and economic development through community engagement.
