Octopus Energy’s renewables arm has participated in the fundraising by climate technology firm Cultivo and agreed to deploy up to $40m (€36.9m) into the firm’s natural capital projects.

Cultivo said it has raised $14m in a series-A funding led by MassMutual Ventures and Octopus Energy Generation, with participation from Salkantay Ventures and Peña Verde, bringing Cultivo’s total capital raised to over $20m.

In addition, Cultivo has signed an agreement with Octopus Energy Generation to deploy up to $40m into natural capital projects across North America, Europe and Australasia. 

Cultivo, which has a pipeline of over 100m hectares of nature-based carbon removal projects, co-designs and monitors projects to measure increases in carbon capture, biodiversity, and water storage, as well as the social impact on the local communities and land stewards.

Alex Brierley, co-head of Octopus Energy Generation’s fund management team, said: “Cultivo are leading the way in carbon removal projects which are helping the natural environment flourish, while providing meaningful benefits to local communities that host them.

“Their tech-led approach, track record and experienced team means we’re confident Cultivo has a winning formula for long-term success in this essential and fast-growing market. We’re looking forward to working with them as they grow and develop more projects globally, making a truly positive impact.”

Manuel Piñuela, CEO and co-founder of Cultivo, said: “Investors are recognising the value and scale of the natural capital investment opportunity, and companies are wanting to secure a future supply of high-quality carbon removal credits to mitigate volatility and quality concerns seen in the voluntary carbon market.

“This funding allows us to continue to deliver our growing pipeline of high-quality natural capital projects for our institutional customers, and accelerate the development of our AI-driven science & technology platform.”

Timothy Krysiek, managing partner of the climate technology fund at MassMutual Ventures, said: “Cultivo’s focus on leveraging technology to rapidly scale investment in the next generation of high-quality, nature-based carbon-removal projects that enrich biodiversity matched our forward view of natural-capital markets.

“Our investment in Cultivo reflects our broader strategy of partnering with exceptional teams who are addressing important, historically underfunded climate challenges.“

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