Carba Raises $6M Investment Round Led by Rusheen Capital and Canopy Generations Fund to Transform Landfill Waste into Economic Value

Eden Prairie, MN – Carba, a leading biocarbon technology and carbon removal company, today announced the close of a $6 million investment round led by Rusheen Capital Management and Canopy Generations Fund (CanopyGen), alongside Groove Capital, Demos Fund, Collaborative Fund, Incite, Grid Catalyst, and Minneapolis-based investors committed to strengthening the state’s clean technology ecosystem.

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“Carba’s solutions represent the kind of innovations the world needs now. Carba is one of the most technically credible and quickly scalable carbon removal companies we’ve seen,” said Sonia Tsao, Partner, Canopy Generations Fund. “Their rigor in measurement, permanence, and cost-efficiency—paired with proprietary technology for both reactor design and burial methods—turns an environmental liability into long-term value. We believe Carba is positioned to be a global leader in the next generation of circular economy innovation.”

“We are investing in Carba because the team has built a credible, scalable business model to monetize biomass waste to clean landfills for future generations,” added Jim McDermott, Managing Partner, Rusheen Capital Management. “Their integration of carbon removal and pollution mitigation within existing waste systems creates real, near-term economic and climate impact at a cost that allows for mass market adoption.”

The funding will accelerate Carba’s technology and commercial development and will support Carba’s expansion into Asia, driving durable carbon removal solutions across the Asia-Pacific region.

“With the backing of Rusheen and CanopyGen, Carba is poised to accelerate our technology development along with deployment and expansion of our project pipeline globally,” said Andrew Jones, CEO, Carba. “Our decentralized model—using existing landfill infrastructure and locally sourced waste biomass—can scale rapidly and cost-effectively.”

This investment follows $2.5M in project financing and Program Related Investments (PRIs) that Carba secured earlier this year from strategic investors including the Minnesota Climate Innovation Finance Authority, JLL Foundation, and Venn Foundation (supported by the Schmidt Family Foundation, a donor-advised fund of the Minneapolis Foundation, and others).

Carba’s first project is currently being commissioned in Burnsville, Minnesota, where biocarbon produced from Carba’s proprietary autothermal pyrolysis reactors will be buried within the Burnsville Sanitary Landfill. Using waste biomass sourced from utility corridor management, the project will generate permanent carbon removal credits—certified through the Isometric Registry for 1,000+ years of durability. Production will come online in Q4 2025, with first Isometric-certified deliveries in Q1 2026. This financing follows several milestones, including a 44,000-ton, five-year carbon credit offtake agreement with Microsoft and being selected for a $7 million U.S. Department of Energy grant under the Carbon Negative Shot program.

With new investment and strategic partnerships, Carba will expand its U.S. project portfolio and accelerate international deployment into Asia. Additionally, Carba will demonstrate through scientific studies the co-benefits of landfill burial, where the biocarbon can act as a filter for odors and toxins, including PFAS, that leach into groundwater, as well as reduce landfill methane production.

Carba’s Asia operation will focus on project development, strategic partnerships, and supply-chain integration throughout Southeast and East Asia. The new business unit will unlock pathways for durable, quantifiable carbon removal credits in markets with growing corporate and governmental demand, advancing Carba’s mission to scale climate infrastructure to gigaton-level impact.

About Carba

Carba converts waste biomass and organic materials into stable biocarbon for use in materials, pollution management, and permanent carbon dioxide removal. Carba has developed a patent-pending autothermal process and a patent-pending anoxic burial method to impart 1,000+ year certified carbon removal. Founded by Dr. Andrew Jones and Professor Paul Daueunhauer, experts with a combined 45+ years of experience in pyrolysis and valorizing biomass. Carba is backed by GigaClimate, a venture builder founded by Nick Halla (founding team and past executive at Impossible Foods).

Carba's first deployment is with a waste disposal company converting municipal wood waste into biocarbon for use as a filter in landfills, sequestering carbon, oxidizing fugitive methane, and adsorbing pollutants within the landfill. Carba is a versatile, efficient, and scalable permanent carbon removal solution.

About Rusheen Capital Management

Rusheen Capital Management (“RCM”) is a Santa Monica–based private equity firm founded in 2015 to invest in, build, and commercialize sustainable technologies that advance a low-carbon future. Led by Jim McDermott and Jeff Green, RCM has a long and successful track record in investment, commercialization, and project development spanning carbon capture and utilization, renewable and low-carbon energy fuels, and water sustainability. The firm’s goal is to catalyze a “carbon-to-value” economy by supporting companies that convert industrial waste streams into productive resources and drive resource efficiency across the energy transition landscape. Since 2003, RCM’s principals have founded, led, or invested in more than forty energy-transition companies across the industrial economy.

About Canopy Generations Fund (CanopyGen)

Canopy Generations Fund (CanopyGen) is a climate-focused investment fund supporting breakthrough companies in decarbonization, carbon removal, and sustainable systems across global markets.