U.S. Bank Makes First Carbon Removal Purchase With Carba's Minnesota Biochar Project

U.S. Bank has entered the carbon dioxide removal market for the first time by purchasing credits from Carba's biochar project in Minnesota. The agreement gives the Minnesota carbon removal developer a new institutional buyer for a project that turns waste biomass into durable carbon storage at a landfill in Burnsville.

Carba converts wood chips from utility vegetation management into biochar using pyrolysis, then places the material in low-oxygen landfill conditions designed to slow degradation. U.S. Bank selected the project because of biochar's established production pathway and the project's Minnesota ties. Carba has deployed the first of four planned reactors at the site.

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Why Carba's Landfill Model Matters

Carba's reactor uses molten salt as a thermal battery and heat-transfer fluid, allowing tighter temperature control during pyrolysis. Project documents filed with Isometric describe a system that keeps the process below 550°C while shortening reaction residence time and maximizing carbon yield. The project uses waste wood from trees and vegetation removed from utility corridors, reducing the need to move bulky feedstock long distances before processing.

The Burnsville project received Isometric validation on June 25, 2026 under its Biochar Production and Storage protocol. Carba says the approach can deliver more than 1,000 years of carbon storage and operate at a cost below $100 per metric ton of CO2 removed. Those targets are significant for buyers seeking durable CDR at lower costs than some other engineered removal pathways.

Andrew Jones, CEO of Carba, said, "This market is continuing, it's growing, it's maturing."

Existing Buyer Support Adds Commercial Momentum

The U.S. Bank purchase follows Carba's five-year agreement with Microsoft, announced in April 2025, covering 44,000 carbon removal credits from the Burnsville project. That earlier offtake gave Carba a large corporate buyer before the project moved into its current deployment phase.

Carba also closed a $6 million investment round in December 2025 to support technology deployment and commercial expansion. The company said in late August that it plans to launch a Series A round shortly, indicating its next phase will focus on scaling beyond the initial Minnesota installation.

Ariel Meyerstein, head of sustainability at U.S. Bank, described the purchase as an early step rather than a commitment to a broader buying program. "This was a test balloon, and we'll see what the future brings," he said.

About Carba

Carba is a Minnesota-based biocarbon and carbon removal company developing modular pyrolysis systems that convert waste biomass into stable carbon. Its model combines local feedstock processing with landfill storage, where biochar can also serve as daily cover while remaining in a low-oxygen environment. The company is developing carbon removal, pollution-management and industrial-material applications for its biocarbon.