Agricarbon, the leading soil carbon measurement company, secures funding to unlock the $175 billion market for soil carbon removals. The funding will be used to accelerate international expansion and meet demand from global clients.
Shell Ventures led the round with participation from Barclays’ Sustainable Impact Capital, specialist food system funds The Nest Family Office and Ananke, carbon removal investor Counteract VC, and global investment manager MFS.
In 2024, Agricarbon will establish a dedicated US entity to service large projects in the Americas, measuring soil carbon removals across hundreds of thousands of hectares of grass and arable farmland. The company is also planning to expand to other regions, prioritising zones of major commodity crop production and areas with significant potential for nature restoration.
Annie Leeson, CEO and Co-Founder of Agricarbon, comments:
“To increase the funding for large-scale soil carbon restoration, benefit claims and credits must be founded on high integrity, highly consistent, and independent primary data. Securing investment from two major stakeholders, Shell and Barclays, affirms the need for our data to increase confidence in soil carbon removals for carbon buyers, food companies and financial markets. Expanding Agricarbon’s service is catalytic for the growth of sustainable market incentives: unlocking more value for farmers and landowners that deliver real carbon removals on the ground, and ensuring natural capital investment can target areas of genuine and meaningful climate benefit.”
Matt Ryan, Regeneration Lead for Nestlé UK & Ireland comments:
“The potential for regenerative practises to reduce and remove carbon in our supply chain is essential to achieving our Net Zero roadmap, and brings substantial environmental and social benefits to our farming communities. Agricarbon provides consistent and reliable evidence of carbon removed into soils, supporting agronomic decisions to build soil health, and ensuring accurate carbon reporting. Agricarbon’s geographic expansion enables a valuable foundation of soil monitoring data to underpin our work.”
Manuel Piñuela, CEO of Cultivo, comments:
“Cultivo’s proprietary algorithms thrive on good quality ground truth data, at scale and across diverse natural ecosystems. Agricarbon, one of our soil carbon measurement partners, delivers the quality of data that gives investors in high-quality natural capital projects the confidence they are looking for.”
Addie Pinkster, CEO & founder of Adelpha, the corporate advisor that led the deal, comments:
“Carbon removal is a large and growing climate industry, with increasing focus on agricultural soils as a large and untapped carbon sink. As agricultural land transitions to regenerative farming practises, it is estimated that soils could technically sequester one to five gigatonnes (billion tonnes) of carbon dioxide per year.
This is a significant opportunity for major food and beverage companies, who are incentivised by the benefits of decarbonising their supply chain, increasing biodiversity, improving resistance to flood and drought, and restoring soil health for a sustainable future food system. Other industries are also keen to support this transition, either to reduce climate risk for food and farming customers (e.g. banking and insurance sectors), reduce net emissions in their supply chain (e.g. agricultural-input companies) or as buyers of agricultural carbon offsets (e.g. transport and tech sectors).
As a result, corporates and natural capital investors are pouring funding into soil carbon removal projects. However, until recently, the roadblock has been the problem of how to measure carbon in the soil accurately and at scale. This is compounded for international corporates and carbon markets, where standardised and consistent data across farming systems and geographies is vital
Agricarbon has changed that, which is why they are working with global food and beverage companies to support some of the most-advanced agricultural carbon removal programmes in the world. Companies that are focused on agricultural soil carbon removal and regenerative farming recognise that Agricarbon is a key part of the solution. This funding round shows that leading investors understand that too.”