MN-Based Carba Raises $6M Investment Round to Scale Biocarbon and Carbon Removal Technology

Eden Prairie, Minn. — Carba, a Minnesota startup focused on biocarbon production and permanent carbon removal, announced the close of a $6 million investment round led by Rusheen Capital Management and Canopy Generations Fund. Additional participants include Groove Capital, Demos Fund, Collaborative Fund, Incite, Grid Catalyst, and several Minneapolis-based investors.

The new capital will support Carba’s technology and commercial development, as well as expansion into Asia. The company converts waste biomass into stable biocarbon that can be buried in landfills for long-term carbon sequestration, creating economic value from landfill waste while reducing emissions.

Carba’s first project is being commissioned in Burnsville, Minnesota, where biocarbon produced from the company’s proprietary autothermal pyrolysis reactors will be buried at the Burnsville Sanitary Landfill. Production is expected to come online in Q4 2025, with the first Isometric-certified carbon removal credits delivered in Q1 2026. The project uses locally sourced waste biomass and is designed to deliver carbon storage durability of more than 1,000 years.

Earlier this year, the Minnesota startup also secured $2.5 million in project financing and program-related investments from groups including the Minnesota Climate Innovation Finance Authority and the JLL Foundation. Carba has additionally signed a 44,000-ton, five-year carbon credit offtake agreement with Microsoft and was selected for a $7 million U.S. Department of Energy grant under the Carbon Negative Shot program.

The company plans to expand its U.S. project portfolio while developing operations across Southeast and East Asia, targeting growing corporate and government demand for durable carbon removal solutions.

Read the full announcement here: https://www.carba.com

This article was created with the assistance of AI to summarize and curate local tech news.