Kimmeridge Invests $200M into Carbon Start-up

Private equity firm Kimmeridge is investing up to $200 million into its own start-up Chestnut Carbon.

Chestnut plans on developing high-quality nature-based carbon offsets. Part of that strategy includes developing new forests by planting trees on 500,000 acres across the U.S.

Chestnut earlier announced its strategic acquisition of forest carbon offsets firm “Forest Carbon Works” (FCW).

What does Kimmeridge carbon offsets investment include?

Kimmeridge’s focus is on energy solutions and launched Chestnut Carbon to generate high-quality forest carbon offsets.

These carbon offsets are biodiverse and verifiable to help Chestnut speed up its way to net zero. Chestnut will focus on forest conservation and reforestation efforts to achieve its goals.

Third-party carbon offset registries will verify the company’s earned credits for accuracy and integrity. In this case, Kimmeridge’s carbon offset investment in Chestnut will help expand access to carbon markets.

How The Merger Will Work

FCW is well-known for developing efficient and accurate approaches in assessing carbon inventories. It uses carbon finance in supporting the conservation of 270 million acres of forests. And so, Kimmeridge carbon offsets investment in Chestnut also means benefitting FCW’s expertise.

Kimmeridge’s expertise is in land aggregation, making Chestnut a strategic platform for carbon offsets.

One of the major strengths of this partnership is the focus on small forest communities. FCW empowers small landowners by giving them access to carbon market revenue streams.

The fresh capital that Kimmeridge provides through Chestnut will support FWC’s current works.

Forest carbon credits are generating a lot of interest from the investment world, last year Amazon made a major investment into the rainforest and Oak Hill acquired 1 million acres of forest for carbon credits.

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