Carbon removal company Terradot announced that it has closed a senior secured term loan of up to $34 million from climate solutions and sustainable infrastructure investment firm HASI, with proceeds aimed at supporting Terradot’s enhanced rock weathering (ERW) projects in the US and Brazil.
The transaction marks the largest disclosed debt financing to date for enhanced rock weathering.
The funded ERW projects are backed by fixed-price, multi-year offtake agreements with carbon removal buyer coalition Frontier, a coalition that includes Google, Salesforce, JPMorgan, Shopify, and Stripe, among others.
Julia Sekula, CFO and Co-Founder of Terradot, said:
“Lenders only back what they can predict. With contracted demand and years of field data that let us bound risks and forecast delivery, this investment marks an important step in bringing project capital to enhanced rock weathering and building the operating record for larger deployments.”
Founded in 2022 by Stanford scientists and entrepreneurs, Terradot provides a carbon removal solution based on transforming the natural process of rock weathering. The company’s ERW solution speeds up the natural process through which CO2 from rainwater is locked into rocks over time by crushing basalt rock and spreading it over vast areas of farmland, with the additional benefit of improving soil health at the same time.
Terradot said that it is scheduled to deploy one million tonnes of rock across 60,000 hectares (150,000 acres) of farmland in the US and Brazil over the course of 2026 and 2027. The company has signed committed offtake agreements with buyers including Google, Frontier, and Microsoft, amongst others.
Annmarie Reynolds, Co-Chief Investment Officer at HASI, said:
“Terradot combines contracted demand, rigorous field data, a repeatable deployment model, and a thoughtful approach to risk, all qualities we look for in every investment.”
