Oxygen Conservation's Ambitious Expansion and Controversial Approach to Regenerative Capitalism in the UK
Oxygen Conservation, led by Rich Stockdale, is pursuing a strategy of 'regenerative capitalism' with plans to become the UK's largest private landowner. The firm aims to expand from its current 50,000 acres to 250,000 acres over five years, having already purchased 13 estates in under four years.
The company's approach combines tree planting, peatland restoration, solar and wind farms, and holiday homes across its estates to generate tens of millions in profit. Central to its financial model is the creation of a market for premium carbon credits, which it intends to price significantly above standard market rates. The target is to achieve two million tonnes of carbon credits, potentially priced up to £180 per tonne, while biodiversity net gain credits are valued at about £25,000 each.
Oxygen Conservation uses a data-driven method for estate modelling, employing technologies such as Lidar, thermal imaging, and photogrammetry. Stockdale likens this approach to Moneyball in sport, emphasizing strategic use of data.
Despite the ambitious plans, campaigners and natural capital experts have expressed skepticism, highlighting concerns over heavy borrowing and speculative financial bets. Local communities near Comrie in the Cairngorms and Dartmoor in south-west England have raised objections to planned windfarms on estates.
Financially, the firm is backed by two large bank loans totalling approximately £106 million due by 2033, with two Scottish estates tied to £20.5 million in loans. Details about the sale prices for estates like Kinrara (formerly owned by BrewDog) and Dorback remain confidential.
Key investors include Mike Dixon, the majority shareholder, Triodos, and Tony Bloom, the owner of Brighton & Hove Albion. Bloom is involved in a separate lawsuit concerning alleged use of frontmen, a case he intends to defend against.
Stockdale asserts that the investments are currently worth over £300 million and projects potential annual returns of up to 15%, contingent on a rise in carbon credit prices. For context, the UK carbon price stood at about £37 per tonne last year.
