A prominent private equity investor specializing in oil and gas operations has entered the carbon credit market with a focus on creating tangible, measurable carbon storage solutions. Chestnut Carbon, led by Kimmeridge Energy Management co-founder Ben Dell, addresses growing quality concerns in the carbon credit sector by developing forest-based projects that buyers can physically verify and measure over extended timeframes.

The company has established operations across nearly 30,000 acres of restored land in Louisiana, Alabama, and Mississippi, with plans to expand to 60,000 total acres. Chestnut's business model involves purchasing unused farmland and pastures, replanting with native hardwood species, and selling the resulting carbon storage as verified credits to corporate buyers seeking reliable offset solutions.

Microsoft represents Chestnut's flagship customer relationship, with a 25-year agreement expected to deliver 7 million metric tons of US-based carbon removal credits. The tech giant's commitment reflects growing corporate demand for high-quality carbon offsets as companies struggle to meet ambitious emissions reduction targets. Mercedes Formula 1 team has also partnered with Chestnut for measurable carbon offset solutions.

The carbon credit market has faced scrutiny over quality and verification issues as demand surged in recent years. Dell's approach emphasizes permanent land ownership and long-term forest management to ensure carbon storage durability, contrasting with more abstract offset mechanisms. However, scaling challenges persist, particularly in sourcing native hardwood seedlings and saplings, with Chestnut now representing the largest buyer of hardwood nursery stock in the southeastern United States.