ALLUVIAL VALLEY, Miss. — Microsoft has struck a deal with startup Chestnut Carbon to acquire credits linked to the removal of carbon dioxide from the atmosphere as part of the tech giant's push to meet its sustainability goals.

Unlike other offset deals that generate credits by preserving trees, Chestnut plants new trees on land previously farmed or under other usage, providing greater environmental benefit. 

The parties declined to say how much Microsoft was paying for the credits, which equate to removing up to 2.7 million tons of carbon through the life of the contract.

"This is, I believe, the largest U.S. afforestation project ever registered," Dell said.

This is the largest afforestation project certified under the Gold Standard to date, and a testament to the scalability of high-quality nature-based solutions. Through a first-of-its-kind 15-year agreement for nature-based credits, Chestnut will deliver 362,000 tons of projected carbon removal from its Sustainable Restoration Project Phase I and up to 2.7 million tons in aggregate across subsequent phases. Chestnut's differentiated focus on positive impact, verifiability and execution aligns with Microsoft's criteria for high-quality carbon removals.

"We are excited to collaborate with Chestnut and its Sustainable Restoration Project for high-quality, nature-based solutions located in the United States," said Brian Marrs, senior director of energy & carbon removal at Microsoft.

Microsoft sees carbon removal programs as a key part of achieving its goal to be carbon negative by 2030, meaning that it will be contributing to the net removal of greenhouse gases from the atmosphere. In 2022, it contracted for more than 1.4 million metric tons of carbon removal, according to its website.

These removal techniques include afforestation measures and technological solutions such as direct air capture.

Microsoft is the first client of Chestnut, which is backed by Kimmeridge Energy Management.