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Applied Carbon Locks In $72M Citi Financing For Texas-Based Biochar

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Applied Carbon Locks In $72M Citi Financing For Texas-Based Biochar

U.S.-based Applied Carbon has secured $72 million in new financing provided by Citibank that will support biochar CO2 removal operations in Texas. 

The financing comes with a novel structure, shaped out as a principal-protected note spanning 3.5 years. With this agreement, participating investors will receive payments linked to verified carbon removals, rather than conventional bond coupons.

Commenting on this financing model, Sonia Battikh, Global Head of Carbon Offsets Trading at Citi, stated, “The voluntary carbon market requires new financial structures to bridge the gap between investor capital and the long-term funding needs of carbon removal projects.” 

“This Carbon Removal-Linked Note builds on Citi’s pioneering work linking bond performance to environmental outcomes and marks our first outcome bond tied to verified carbon removals,” she added.

Global investment manager Nuveen also participated in the financing, citing the project’s valuation, impact reporting, and carbon credit generation potential.

This agreement provides Applied Carbon with upfront capital for its biochar-centered operations with mobile pyrolysis technology.

To produce biochar, the company uses agricultural crop residue as feedstock. Its approach is powered by mobile pyrolysis systems that process the waste biomass directly in agricultural fields, enabling both on-site production and application.

With the financing secured from Citi and Nuveen, Applied Carbon intends to scale the deployment of this technology across the state of Texas. 

From the perspective of Jason Aramburu, founder and CEO at Applied Carbon, this financing shows that biochar and engineered CO2 removal projects can be structured and financed like any other asset.

“We’re proud to work with Citi and Nuveen to scale our deployments and deliver real impact for the climate and for farmers across Texas.


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