Cleantech startup Terragia Biofuel announced that it has raised $6 million in a seed financing round, with proceeds to be used by the company to grow and to commercialize its biology-based approach to converting biomass into ethanol and other products.

Founded in 2022, New Hampshire-based Terragia develops technology enabling the production of sustainable fuels from cellulosic biomass. The company’s solution converts biomass into ethanol using thermophilic microorganisms, replacing the conventional process of adding enzymes and using thermochemical pretreatment, avoiding key factors responsible for the high cost of conventional cellulosic biofuel production. The technology creates fuels for difficult-to-electrify transport modes, including aviation, ocean shipping and long-haul trucking.

Terragia also announced that Kristin Brief has been named Chief Executive Officer, joining co-founders Lee Lynd, who transitioned to Chief Technology Officer, Bill Brady, Board Chair, and Chris Herring, Vice President of Technology Development.

Brief previously served as a Business Fellow for Breakthrough Energy and before that was Co-Founder and Chief Operating Officer of Virex Health.

Brief said:

“It’s an honor to lead Terragia as CEO. I’ve spent the majority of my 20-year career advancing early-stage clean energy startups, and Terragia’s technology, team, and path to commercialization are differentiated. We have a unique opportunity to make a transformational impact on climate outcomes, in addition to generating substantially higher revenues for biofuel producers.”

The funding round was led by Engine Ventures and Energy Impact Partners.

Katie Rae, CEO and Managing Partner of Engine Ventures said:

“Terragia has an exciting opportunity to succeed where others in the cellulosic biofuel industry have not. The company’s technology provides a radically different approach that uses biology to reduce the high costs and scale of conventional cellulosic biofuel production.”

In partnership with Dartmouth College and the University of Campinas, the development of Terragia’s technology is also supported by funding from the Department of Energy Center for Bioenergy Innovation and the São Paulo Research Foundation, and by grants from the U.S. Department of Agriculture and National Science Foundation. The company said its technology is projected to displace 3 gigatons of CO2 emissions annually.

Director of the National Renewable Energy Laboratory Martin Keller said:

“Cellulosic biofuels are a route to low-carbon fuels for aviation and other difficult-to-electrify transport modes as well as CO2 removal from the atmosphere, both of which are critical for climate stabilization. One-step biological conversion of cellulosic biomass without added enzymes or thermochemical pretreatment has clear cost reduction potential relative to other process concepts.”