Living Carbon Secures $500 Million Deal with Octopus Energy Generation for Large-Scale Carbon Removal

Living Carbon has signed a major agreement with Octopus Energy Generation to remove up to 50 million tonnes of carbon dioxide through large-scale reforestation and land restoration projects across the United States.

Under the deal, Octopus Energy Generation’s fund management arm will invest $500 million into afforestation and reforestation initiatives developed by Living Carbon. In addition, the investor is committing nearly $13 million directly into the company’s carbon removal business to support its expansion.

The partnership is expected to enable carbon removal over a 40-year period equivalent to roughly the annual emissions footprint of New York City. Living Carbon focuses on restoring degraded land, including former mining sites and low-productivity farmland, turning them into carbon-absorbing ecosystems through the planting of native trees.

The initiative targets a significant opportunity, with more than 130 million acres of degraded land across the U.S. identified as suitable for restoration. Beyond capturing carbon, the projects aim to deliver co-benefits such as improved biodiversity, enhanced soil health, better water quality, and economic support for rural communities.

The deal also reflects growing corporate demand for long-term carbon removal solutions. Living Carbon has already secured offtake agreements with major companies including Google, Meta, and McKinsey & Company, which have collectively contracted over 131,000 tonnes of carbon removal over the next decade.

The agreement comes amid rapid growth in the carbon removal market, with forward purchase agreements reaching $13.7 billion in 2025 as companies seek to secure supply in line with net-zero commitments.

Octopus Energy Generation said the investment forms part of its broader strategy to expand in key clean technology markets, including California, with plans to deploy up to $2 billion into U.S. clean energy projects by 2030. The firm currently manages around 400 renewable energy assets globally.

The partnership marks a shift toward larger-scale, institutional investment in nature-based carbon removal, signalling increasing maturity in the market as companies and investors seek credible pathways to reduce atmospheric CO₂.