Carba Raises $6 Million to Scale Biocarbon Technology for Permanent Carbon Removal
Carba, a climate technology company focused on durable carbon removal, has secured $6 million in new funding to scale its operations and expand its project pipeline in the United States and Asia. The investment round was led by Rusheen Capital Management and the Canopy Generations Fund (CanopyGen), with participation from Groove Capital, Demos Fund, Collaborative Fund, Incite, Grid Catalyst, and individual investors including Rahul Shendure and Neil Renninger.
The financing marks a significant step forward for Carba as it moves from early deployments toward broader commercialization. The company develops technology that converts organic waste materials, such as wood waste and other biomass residues, into stable biocarbon using proprietary autothermal pyrolysis reactors. This biocarbon can then be permanently stored, including through controlled burial in landfills, preventing carbon from re-entering the atmosphere for thousands of years. The resulting carbon removal can be quantified and sold as high-durability carbon removal credits.
According to the company, the new capital will be used to accelerate reactor deployment, expand operational capacity, and support entry into Asia-Pacific markets. Carba is currently bringing its first commercial project online at a landfill site in Burnsville, Minnesota. At this facility, waste biomass sourced locally is converted into biocarbon and buried under anoxic conditions, enabling the generation of verified, long-duration carbon removal credits. These credits are designed to meet the growing demand from corporations seeking credible pathways to meet climate commitments.
The participation of Rusheen Capital Management and CanopyGen highlights increasing investor interest in carbon removal technologies that go beyond emissions avoidance. Rusheen Capital Management focuses on sustainable and low-carbon solutions, while CanopyGen invests in technologies with the potential to deliver long-term climate benefits across generations. Their involvement signals confidence in Carba’s technical approach and its ability to scale infrastructure-based carbon removal.
The $6 million round builds on earlier financing secured by the company in 2025, when Carba raised $2.5 million in project financing and program-related investments from organizations including the Minnesota Climate Innovation Finance Authority, the JLL Foundation, and the Venn Foundation, which is supported by the Schmidt Family Foundation. That earlier funding helped de-risk Carba’s first projects and laid the groundwork for attracting private capital into its model.
In parallel with raising capital, Carba has also entered into long-term commercial agreements that support its growth. Most notably, the company signed a five-year carbon removal credit purchase agreement with Microsoft, covering 44,000 tons of carbon removal. Such offtake agreements provide revenue visibility and validate demand for permanent carbon removal solutions, which remain a relatively nascent but rapidly developing market.
Carba’s leadership team brings academic and technical expertise to the company’s development. The company was co-founded by Andrew J. Jones and Paul Dauenhauer, both of whom have backgrounds in chemical engineering and reactor design. Carba’s approach has gained recognition within the cleantech ecosystem, including winning the 2023 Minnesota Cup Grand Prize, a statewide competition highlighting emerging innovation-driven companies.
As global pressure increases on companies and governments to address climate change with measurable and verifiable outcomes, Carba’s funding round reflects a broader shift toward investing in durable carbon removal infrastructure. By combining venture capital, project finance, and long-term customer commitments, Carba aims to demonstrate that permanent carbon removal can be scaled using existing waste streams while creating a viable commercial pathway for climate-positive technologies.
