The Scottish brewery BrewDog sold its Highland estate, Kinrara, for a price significantly lower than it paid five years prior, after abandoning plans to create what was touted as Scotland’s “biggest ever forest.”
BrewDog’s Abandoned Ambitions
In 2020, BrewDog co-founder James Watt claimed the “Lost Forest” project at Kinrara in the Cairngorms national park would cover a “staggering area” and capture tens of millions of tonnes of CO2. The company purchased the estate for £8.5 million, with plans to achieve carbon neutrality through extensive tree planting, peatland restoration, and ecotourism.
However, following financial losses of £37 million and a change in leadership—Watt was replaced as chief executive—Kinrara was sold in October of last year to the “regenerative capitalist” carbon investment firm Oxygen Conservation. The sale price was £8.85 million, only slightly more than BrewDog originally paid, despite the estate being valued at approximately £11.3 million when accounting for inflation.
Oxygen Conservation reportedly utilized a loophole in Scottish land registration rules to keep the exact sale price confidential, citing the brewer’s desire for privacy. However, land registration records revealed the final figure.
A Shifting Market?
Analysis suggests Oxygen Conservation secured a favorable deal. The company paid £2,351 per hectare for Kinrara, compared to £4,687 per hectare for the Dorback estate and £3,086 per hectare for Blackburn & Hartsgarth, both purchased in prior years.
The sale included approximately 130,000 woodland “pending issuance units” (PIUs) and 46,500 peatland PIUs, representing potential future carbon credits. Oxygen Conservation anticipates adding nearly 100,000 more PIUs from a second woodland project.
BrewDog declined to comment on the sale. Recent developments include a US firm’s purchase of BrewDog’s brewery assets for £33 million, a deal that resulted in the loss of 38 pubs and nearly 500 jobs.
Frequently Asked Questions
What was BrewDog’s original plan for the Kinrara estate?
BrewDog intended to create Scotland’s “biggest ever forest” at Kinrara, aiming to capture millions of tonnes of CO2, achieve carbon neutrality, restore peatland, and promote ecotourism.
Who bought the Kinrara estate from BrewDog?
The Kinrara estate was purchased by Oxygen Conservation, a “regenerative capitalist” carbon investment firm.
How much did Oxygen Conservation pay for the Kinrara estate?
Oxygen Conservation paid £8.85 million for the Kinrara estate.
As the market for carbon credits evolves, what impact will these types of transactions have on land ownership and environmental initiatives in Scotland?
