Octopus Energy Generation has signed a deal to remove up to 50 million tonnes of carbon dioxide from the air.

Octopus’s fund management team is set to invest $500m in afforestation and reforestation projects in the US developed by Living Carbon and put nearly $13m into Living Carbon's carbon removal development business.

With the new funding, Living Carbon will be able to remove up to 50 million tonnes of carbon dioxide over the next 40 years.

Using satellite imagery and historical climate data to pinpoint the best sites for reforestation, Living Carbon focuses on land that would otherwise stay ecologically stagnant.

The locations include old mining sites and over-used farmland, transforming these spaces into carbon-absorbing sinks. These projects will also have a host of additional benefits such as restoring wildlife habitats, improving water quality, strengthening soils, and supporting local economies in rural communities.

The deal comes as Living Carbon has landed major carbon offtake agreements with Symbiosis Coalition members Google, Meta, and McKinsey.

Zoisa North-Bond, CEO at Octopus Energy Generation, said: “Having industry leaders and the world’s largest tech giants backing these projects sends a powerful signal that the carbon removal market is ready to grow. Nature itself is a remarkable force for capturing carbon, by restoring these ecosystems, we can make a real difference for both rural communities and the climate.”

The deal follows Octopus increasing its investment to a total $100m in nature-based solutions provider Cultivo to restore degraded grasslands in the US, and together the deals push Octopus closer to its ambitious target of directing $2bn into US clean energy by 2030.

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