Renewable energy investor Octopus Energy Generation announced the expansion of its carbon removal partnership with nature-based solutions provider Cultivo, with an agreement to deploy an additional $60 million to support grasslands regeneration and carbon removal projects, bringing the partnership to $100 million.
Founded in 2019, California-based Cultivo uses technology and algorithms to identify high quality nature-based solution projects around the world, and then packages those projects into investment products for financial institutions and corporations to invest in, to finance sustainable activities that restore and protect nature, such as regenerative grazing or forest management. The company’s projects span sustainable grasslands management, afforestation and reforestation, agroforestry, improved forest management, mangrove restoration, and biochar.
Alex Brierley, co-head of Octopus Energy Generation’s fund management team, said:
“We love when technology helps nature do what it does best – cut emissions fast. By putting meaningful capital into natural capital projects, we can support ranching communities, strengthen these vital landscapes, and develop grasslands into global assets.”
The announcement follows the launch of a partnership between the companies in early 2024, with Octopus Energy Generation participating in Cultivo’s $14 million Series A funding round, and signing an agreement to deploy $40 million into natural capital projects. In December, Cultivo acquired carbon grasslands project developer Kateri, after working with the company to scale the pipeline of U.S. grasslands catalyzed by Octopus Energy Generation’s initial commitment. Cultivo said that it has already enrolled more than 650,000 acres of U.S. grasslands, securing enough to remove 9 million tonnes of CO2 emissions over the next 30 years, and that it is on track to surpass 2 million acres this year.
Dr. Manuel Piñuela, Cultivo CEO & Co-Founder, said:
“Our partnership with Octopus Energy Generation has been transformational. The increase of their capital allocation to $100 million validates our strategy of building a vertically integrated, institutional-grade platform for U.S. natural assets and signals a new era for grasslands. This increased capital allows us to continue accelerating the growth of our U.S. grasslands and carbon removal project pipeline at speed and scale.”
