Carba Raises $6M to Scale Biocarbon Technology for Durable Carbon Removal
Carba, a Minneapolis, Minnesota–based climate technology startup focused on converting waste biomass into long-lived biocarbon for durable carbon removal, announced the successful close of a $6 million funding round late in 2025, underscoring growing investor confidence in scalable carbon dioxide removal solutions. The new capital is set to accelerate the company’s commercial expansion, support project deployments in the United States, and lay the groundwork for international growth, particularly across Asia-Pacific markets.
The investment round was led by Rusheen Capital Management, a private equity firm backing sustainable and low-carbon technologies, and Canopy Generations Fund, a climate-focused fund supporting carbon removal and decarbonization innovations. Additional participation came from Groove Capital, Demos Fund, Collaborative Fund, Incite, Grid Catalyst, and individual investors, including Rahul Shendure and Neil Renninger.
Carba’s core technology is built around proprietary autothermal pyrolysis reactors that convert waste biomass and organic residues into a stable form of biocarbon. This biocarbon is then placed in carefully managed anoxic environments, such as landfills, where it can achieve permanent carbon sequestration with durability measured in centuries. By turning organic waste streams into a long-term carbon sink, the company aims to pair climate impact with an economically viable waste-management solution.
According to the company, the newly raised capital will be used to scale operations and move from early deployment to broader commercial implementation. Carba is commissioning its first project in Burnsville, Minnesota, where biomass sourced from utility corridor management and other local waste streams will be processed into biocarbon and sequestered at the Burnsville Sanitary Landfill. Production is expected to begin in the fourth quarter of 2025, with the first verified carbon removal credits delivered to customers in early 2026.
The $6 million raise builds on earlier financial and strategic support secured by the company. Prior to this round, Carba obtained approximately $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. A $500,000 loan from the Minnesota Climate Innovation Finance Authority played a key role in enabling initial reactor deployment and early project development.
Beyond fundraising, Carba has also established commercial agreements that validate demand for its carbon removal output. The company signed a five-year carbon removal credit purchase agreement with Microsoft covering 44,000 metric tons of carbon removal, highlighting corporate interest in high-durability, high-integrity carbon credits. In addition, Carba was awarded a $7 million grant from the U.S. Department of Energy under the Carbon Negative Shot initiative, strengthening its technical roadmap and commercialization plans.
Investors in the round pointed to Carba’s ability to integrate carbon removal into existing waste management infrastructure as a key differentiator. By using locally sourced biomass and already permitted landfill sites, the company aims to deploy projects more quickly and at lower cost than many competing approaches. Backers also highlighted Carba’s emphasis on rigorous measurement and verification as an important factor in building trust in the voluntary carbon market.
Founded by CEO Dr. Andrew J. Jones and co-founder Professor Paul Dauenhauer, both with deep expertise in chemical engineering and biomass conversion, Carba is part of a growing group of startups focused on delivering durable carbon removal at scale. The $6 million funding round marks a significant milestone in the company’s growth and reflects increasing investor interest in climate technologies that transform waste into permanent environmental value.
