Carba, a leading biocarbon technology and carbon removal company, today announced the close of a $6 million Investment Round led by Rusheen Capital Management and Canopy Generation Fund (CanopyGen), alongside Groove Capital, Demos Fund, Collaborative Fund, Incite, Grid Catalyst, Rahul Shendure, Neil Renninger, and Minneapolis-based investors committed to strengthening the state's clean technology ecosystem.
"Carba's solutions represent the kind of innovations the world needs now. Carba is one of the most technically credible and quickly scalable carbon removal companies we've seen," said Sonia Tsao, Partner at Canopy Generation Fund. "Their rigor in measurement, permanence, and cost-efficiency - paired with proprietary technology for both reactor design and burial methods - turns an environmental liability into long term value. We believe Carba is positioned to be a global leader in the next generation of circular economy innovation."
"We are investing in Carba because the team has built a credible, scalable business model to monetize biomass waste to clean landfills for future generations," added Jim McDermott, Managing Partner at Rusheen Capital Management. "Their integration of carbon removal and pollution mitigation within existing waste systems creates real, near-term economic and climate impact at a cost that allows for mass market adoption."
The funding will accelerate Carba's technology and commercial development, and will support Carba's expansion into Asia, driving durable carbon removal solutions across the Asia-Pacific region.
"With the backing of Rusheen and CanopyGen, Carba is poised to accelerate our technology development along with deployment and expansion of our project pipeline globally," said Andrew Jones, CEO of Carba. "Our decentralized model - using existing landfill infrastructure and locally sourced waste biomass - can scale rapidly and cost-effectively."
This investment follows $2.5M in project financing and Program Related Investments (PRIs) that Carba secured earlier this year from strategic investors including the Minnesota Climate Innovation Finance Authority, JLL Foundation, and Venn Foundation (supported by the Schmidt Family Foundation, a donor advised fund of the Minneapolis Foundation, and others).
Carba's first project is currently being commissioned in Burnsville, Minnesota, where biocarbon produced from Carba's proprietary autothermal pyrolysis reactors will be buried within the Burnsville Sanitary Landfill. Using waste biomass sourced from utility corridor management, the project will generate permanent carbon removal credits - certified through the Isometric registry for 1,000+ years of durability. Production will come online in Q4 2025, with first Isometric-certified deliveries in Q1 2026. This financing follows several milestones, including a 44,000-ton, five-year carbon credit offtake agreement with Microsoft and being selected for a $7 million U.S. Department of Energy grant under the Carbon Negative Shot program.
With new investment and strategic partnerships, Carba will expand its U.S. project portfolio and accelerate international deployment into Asia. Additionally, Carba will demonstrate through scientific studies the co-benefits of landfill burial, where the biocarbon can act as a filter for odors and toxins, including PFAS, that leaches into groundwater as well as reduce landfill methane production.
Carba's Asia operation will focus on project development, strategic partnerships, and supply-chain integration throughout Southeast and East Asia. The new business unit will unlock pathways for durable, quantifiable carbon removal credits in markets with growing corporate and governmental demand, advancing Carba's mission to scale climate infrastructure to gigaton-level impact.