Chestnut Carbon to Deliver High-Quality Carbon Removal Credits through a Multi-year Offtake Agreement with Microsoft

Chestnut will Remove 362,000 Tons of Carbon for Microsoft in Phase I of the Largest U.S. Gold Standard-Registered Afforestation Project

NEW YORK, Dec. 20, 2023 /PRNewswire/ -- Chestnut Carbon ("Chestnut"), a nature-based carbon removal developer founded by private investment firm Kimmeridge Energy Management Company, LLC ("Kimmeridge"), today announced that it has entered into a multi-year offtake agreement to provide Microsoft (NASDAQ: MSFT) with high-quality, nature-based carbon removal derived entirely from a novel afforestation project based in the United States.

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This is the largest afforestation project certified under the Gold Standard to date, and a testament to the scalability of high-quality nature-based solutions. Through a first-of-its-kind 15-year offtake agreement 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. Chestnut's differentiated focus on positive impact, verifiability and execution aligns with Microsoft's criteria for high-quality carbon removals.

Chestnut is growing its capacity to 500,000 acres and 100 million tons of carbon removal in order to meet the increasing demand for high-quality, cost-effective carbon removal solutions by corporations and governments across the globe.

Key features of Chestnut's Sustainable Restoration Project:

• Chestnut carbon removal credits are additional, verified and certified to the highest standards – meeting the rigorous requirements of Gold Standard, the premier crediting standard for carbon projects.

• Chestnut stands behind the durability of its carbon sequestration through long-term conservation of the land, planting biodiversity and risk mitigation practices.

Broader environmental and stakeholder benefits include enhancing ecological systems, bolstering local communities, improving air and water quality and restoring natural habitats to their original state.

Ben Dell, CEO of Chestnut and Managing Partner of Kimmeridge said, "We're pleased to be working with Microsoft on its commendable journey to offset emissions through high-quality nature-based solutions. When launching Chestnut in 2022, we were guided by a strong belief that these solutions are the most attractive, scalable and cost-effective means for sustainability-minded organizations. We are actively building out our platform to meet demand from the most discerning customers and look forward to announcing additional blue-chip partnerships in the near future."

"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 & Carbon Removal at Microsoft.

About Chestnut Carbon

Founded in 2022 with the support of energy-focused private equity firm Kimmeridge, Chestnut Carbon ("Chestnut") is a leading developer of nature-based carbon removal credits. It generates U.S.-based, high-quality forest carbon offsets that are additional, verifiable and biodiverse to accelerate the path to net zero across a range of industries. Chestnut's expertise is bolstered by its acquisition of Forest Carbon Works, a public benefit corporation, with a proprietary approach to developing U.S. forest carbon offset projects on family-owned forestland. The Chestnut team is uniquely positioned to address carbon removal, with diverse backgrounds including forestry, carbon regulation, environment, finance and land. For additional information on Chestnut, its strategies and environmental stewardship thought leadership, please visit https://chestnutcarbon.com/.

SOURCE Chestnut Carbon