Chestnut Carbon (Chestnut), a nature-based carbon removal developer, announced it has entered into a multi-year offtake agreement to provide Microsoft with nature-based carbon removal derived entirely from an afforestation project.
With afforestation projects, trees and tree seedlings are introduced to establish a forest on deforested land or land that has not been previously forested.
The project will see Chestnut grow its capacity to 500,000 acres and 100 million tons of carbon removal to meet the increasing demand for high-quality, cost-effective carbon removal solutions by corporations and governments.
Through this project and the signing of a 15-year offtake agreement with Microsoft for nature-based credits, Chestnut will deliver 362,000 tons of projected carbon removal from its Sustainable Restoration Project Phase I and up to 2.7 million tons in aggregate across subsequent phases.
"Microsoft's 15-year purchase agreement with Chestnut Carbon for afforestation-based carbon removal credits is a positive step towards Microsoft's carbon-negative goals. We are excited to collaborate with Chestnut and its Sustainable Restoration Project for high-quality, nature-based solutions located in the United States," said Brian Marrs, Senior Director of Energy and Carbon Removal at Microsoft.
