Cultivo accelerates U.S. grassland regeneration with acquisition of Kateri to expand carbon restoration projects

Cultivo, the natural capital project developer headquartered in the United States, announced the acquisition of Kateri, a carbon grassland initiative known as “the rancher’s carbon company,” in a move aimed at advancing large-scale restoration efforts and expanding investment opportunities linked to land regeneration. The agreement, confirmed in late 2025, marks a strategic step for Cultivo as it seeks to transform nature-based projects from emerging financial alternatives into long-term environmental infrastructure, while providing economic returns for ranchers, investors, and the broader conservation market.

The acquisition integrates Kateri’s field expertise and long-standing rancher relationships with Cultivo’s technological and financial development model. According to the company, the combined platform will accelerate grassland rehabilitation through carbon credit schemes, improved land management practices, and broader access to institutional capital. The announcement follows months of collaboration between both organizations and forms part of Cultivo’s expanding pipeline of projects targeting degraded U.S. grasslands.

Dr. Manuel Piñuela, Cultivo’s cofounder and CEO, underscores that the vision is to regenerate vast tracts of land while positioning natural ecosystems as a permanent socioeconomic asset. The company’s strategy relies on AI-supported land identification, satellite monitoring, and project-level implementation. With Kateri’s addition, Cultivo expects to deepen engagement with ranchers and increase on-ground operational capacity.

A business model built on restoration economics

Cultivo’s core mission consists of regenerating degraded or underutilized land at scale by turning restoration processes into financially viable mechanisms. Its methodology begins with identifying suitable land through a proprietary platform that uses satellite imaging, AI analytics, and remote-sensing data to evaluate ecological potential. Once land is selected, the company works directly with owners to implement restoration projects. These projects are then financed through institutional capital and monetized through carbon removal credits purchased by corporations seeking emissions offset.

This structure creates a network of incentives: landowners adopt sustainable grazing systems, technology companies deploy monitoring tools, investors receive long-term environmental asset returns, and ecosystems recover soil health and biodiversity. Grasslands have emerged as a central application because, despite covering nearly one-third of the planet’s surface, more than half are now degraded due to overgrazing, land conversion, and extractive agricultural models.

Recent funding has fueled this shift. Backed by a USD 40 million commitment from Octopus Energy Generation, Cultivo has developed a pipeline approaching 650,000 acres of potential grassland restoration in the U.S.—a surface area comparable to the state of Rhode Island. Each project includes infrastructure improvements, digital monitoring systems, and land stewardship training, all intended to return carbon to soil and prevent further ecological loss.

A new phase driven by ranch-level expertise

The acquisition of Kateri responds to an operational need: deeper integration with ranchers and local actors who manage the landscapes daily. Kateri brings what Cultivo describes as “rancher-level engagement,” meaning direct understanding of grazing rhythms, seasonal challenges, and the practicality of new technologies such as virtual fencing and soil-sensor networks. The company has built trust among U.S. ranchers seeking restoration-based revenue, enabling smoother implementation and faster scaling.

For Cultivo, merging with Kateri reinforces credibility in rural regions where conservation projects often face skepticism or slow adoption. It also accelerates the conversion of theoretical restoration models into functional commercial assets. According to internal projections, the integration will enable faster deployment of carbon projects, shorten negotiation cycles with landowners, and expand technical adoption in key restoration zones.

Cultivo states that landowners are increasingly open to experimenting with fencing technologies that reduce stress on ecosystems, improve rotational grazing, and generate measurable carbon sequestration results. These practices form the basis of carbon credit issuance and enable investors to secure offtake agreements for long-term environmental returns. The presence of ranchers also provides real-time ecological feedback, allowing adaptive management that strengthens soil recovery and biodiversity indicators.

Why this matters for the broader natural capital market

The strategic value of the acquisition lies not only in land restoration but in the financial architecture developing around it. Piñuela notes that nature is beginning to be treated as core economic infrastructure, rather than an accessory market. This shift, he argues, is essential to attract permanent capital capable of supporting restoration for decades. The company believes integrating Kateri enhances its ability to provide investors with clear pathways to returns while guaranteeing ecological accountability.

Historically, forests have dominated climate financing, overshadowing grasslands despite their relevance for carbon storage. Grassland ecosystems store organic carbon deep in soil layers and offer resilience to temperature fluctuation, drought, and wildfire. As scientific research and market mechanisms evolve, funds are increasingly directed toward prairie-based solutions. Cultivo aims to position itself at the center of this transition by linking restoration science, financial modeling, and rural participation.

The acquisition also reflects a global movement toward natural capital valuation, where ecological integrity becomes a quantifiable asset comparable to infrastructure or energy resources. Companies that can validate carbon capture at scale may shape new markets driven by decarbonization commitments, ESG regulation, and investor demand for climate-positive assets.

A long-term mission fueled by technology and land stewardship

Cultivo emphasizes that the next phase is not only technical, but relational. Engaging with ranchers, expanding educational programs, and building monitoring systems remain essential to ensure permanence of carbon sequestration and avoid land-use reversals. The company argues that success depends on mutual incentive: ranchers gain revenue from carbon markets, investors diversify portfolios with regenerative assets, and degraded grasslands regain ecological function.

The partnership with Kateri seeks to accelerate that alignment over the coming years. As the restoration economy evolves and grassland-based carbon programs mature, Cultivo plans to refine measurement methodologies, strengthen offtake mechanisms and integrate biodiversity metrics into its financial models. The acquisition, as reported by AgFunderNews (AFN), also signals a broader shift in climate finance by demonstrating that natural ecosystems may soon operate as baseline infrastructure rather than alternative assets — a transition that both ranchers and investors appear increasingly ready to embrace.