Reforestation Plan Gains Investor Attention After Wildfires

The Financial Challenges of Wildfire Recovery and Reforestation

Recovering from a wildfire represents a substantial financial undertaking. Recent wildfires in Los Angeles, for instance, resulted in property and capital losses potentially reaching $164 billion. Restoring forested areas also carries significant costs, with a few thousand acres requiring an investment of several million dollars, as noted by Grant Canary, CEO and co-founder of Mast Reforestation, in a discussion with TechCrunch.

The Economic Disincentive for Long-Term Reforestation

A key challenge lies in the lengthy timeframe for forest regeneration. Given that it can take 60 to 80 years for trees to mature, investment managers are likely to seek alternative opportunities with quicker returns.

Traditional Reforestation Methods and Their Costs

The most significant expense in reforestation typically involves managing the dead and burned trees. A common practice is to cut down these trees, accumulate them into piles, and then burn them on-site. Canary points out that this remains the most economical approach.

Mast Reforestation’s Innovative Approach to Funding

Mast Reforestation has developed a novel strategy to finance reforestation efforts immediately, circumventing the need for landowners to wait decades for timber harvesting or carbon credit revenue. Rather than burning the remaining biomass, Mast collects and buries the trees to prevent decomposition, subsequently selling the resulting carbon credits.

Recent Funding and Initial Project Location

The company recently secured $25 million in funding to advance this new business model, as exclusively reported to TechCrunch. Pulse Fund and Social Capital spearheaded the investment round, with additional participation from Seven Seven Six. Mast’s inaugural project will focus on an area in Montana impacted by the Poverty Flats Fire in 2021.

Benefits of Biomass Burial and Potential Environmental Concerns

Biomass burial offers the advantage of reducing soot emissions into the atmosphere. However, without adequate site preparation, it could potentially lead to the release of methane and carbon dioxide.

Typically, wood decays in most soils as microbes break down the cellulose, releasing these greenhouse gases.

Mast’s Unique Burial Technique

Mast employs a distinct method, entombing the trees in areas abundant with clay. This limits the circulation of air and water, effectively suppressing microbial activity. The burial sites can reach depths of up to 30 feet and cover areas spanning up to three acres.

Following the placement of the dead trees, Mast seals the hole with clay and other natural materials, mirroring the construction of landfills.

Monitoring and Long-Term Site Maintenance

Upon completion, Mast will install monitoring devices at the burial site to verify that the wood remains undecomposed. Furthermore, the company is establishing the Northwest Permanence Foundation to oversee and maintain the site for at least a century, aligning with the minimum duration required for the generated carbon credits.

The foundation will be empowered to undertake repairs if any signs of decay are detected.

Carbon Credit Revenue and Reforestation Scale

By securely storing the carbon within the buried trees, Mast anticipates selling up to 30,000 metric tons of carbon credits. The revenue generated will be allocated to reforesting 900 acres.

From DroneSeed to Mast Reforestation

Grant Canary initially founded the company a decade ago as DroneSeed, which utilized drones for reseeding wildfire-affected areas.

He soon recognized that simply dispersing seeds was insufficient; a reliable seed source was crucial, and reforestation efforts are generally more successful with seedlings cultivated in nurseries rather than seeds scattered by drones. Consequently, DroneSeed acquired Silvaseed and Cal Forest Nurseries and rebranded as Mast Reforestation.

Building a New Business from the Ground Up

In contrast, the biomass burial venture is being developed entirely from scratch.

The company is actively collecting data and refining the technology to identify optimal locations for biomass burial on fire-damaged landscapes. Canary envisions leveraging this data platform alongside carbon credit sales to accelerate reforestation across wildfire-prone regions of the western United States.

Accelerated Reforestation Timelines

“Traditional reforestation projects typically require three to five years to complete,” Canary stated. “We aim to accomplish this within six to twelve months.”