Octopus Commits US$500 Million to US Reforestation Carbon Removal Projects

Octopus Energy Generation has agreed to invest US$500 million in afforestation and reforestation projects developed by nature-based solutions company Living Carbon on degraded land across the United States. The agreement also includes a US$13 million equity stake in Living Carbon's carbon removal business and is structured to remove up to 50 million tons of carbon dioxide over the next 40 years.

Founded in 2019, California-based Living Carbon transforms marginal land — including abandoned mines, degraded farmland, and unproductive soils — into high-value environmental assets through site-tailored reforestation. The company has previously signed carbon removal offtake agreements with Google, Meta, and McKinsey, and executed a 1.4 million ton carbon credit deal with Microsoft. The new Octopus agreement fully funds Living Carbon's carbon business, according to company CEO Maddie Hall, providing a platform for expansion into new markets and products.

The deal arrives amid scrutiny of voluntary carbon markets following reports that Microsoft had signalled a pause in carbon removal purchases, though the company subsequently confirmed its carbon removal programme would continue. Octopus's commitment of US$500 million sends a signal of institutional confidence in nature-based carbon removal at scale, particularly reforestation, which delivers co-benefits including improved soil health, biodiversity enhancement, and economic development for rural communities alongside carbon sequestration.

The investment forms part of Octopus's broader commitment to direct US$2 billion into US clean energy projects by 2030, with California positioned as a key cleantech hub in its investment strategy. Octopus CEO Zoisa North-Bond described the agreement as a landmark deal, noting that backing from major technology companies underscores market readiness for large-scale carbon removal. Living Carbon plans to leverage the funding to expand its geographic reach and develop new product offerings in the carbon removal space.

Key figure — 50 million tons of CO2 targeted for removal over 40 years