Octopus Energy to inject up to $40m into Cultivo’s natural capital projects

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.“

To read the latest IPE Real Assets magazine click here.