Terradot and HA Sustainable Infrastructure Capital have closed a $34 million senior secured term loan to finance enhanced rock weathering carbon removal projects across the United States and Brazil.
The companies said that the transactiis as the largest disclosed debt financing to date for enhanced rock weathering, or ERW.
Terradot’s projects are supported by fixed-price, multi-year carbon removal offtake agreements with Frontier, a coalition that includes Google, Salesforce, JPMorgan, Shopify, Stripe, and other organizations. The financing is also supported by carbon delivery insurance provided by CFC and arranged through Marsh.
Enhanced rock weathering involves spreading crushed rock over agricultural land. Through natural chemical processes, the rock removes carbon dioxide from the atmosphere and stores it for potentially thousands of years while also providing potential soil benefits.
Terradot plans to deploy approximately 1 million tonnes of rock across 60,000 hectares, or roughly 150,000 acres, of farmland in the U.S. and Brazil during 2026 and 2027.
The company said long-term contracted demand and several years of operating data helped create a financing structure that can support larger-scale deployment of ERW projects.
Terradot was founded in 2022 by Stanford scientists and entrepreneurs and has raised $58 million from investors including Google, Microsoft, Gigascale Capital, Valor Capital, and Acre Venture Partners. Individual backers include Sheryl Sandberg, John Doerr, and George Roberts.
The company has also signed committed carbon removal offtake agreements with Google, Frontier, Microsoft, and other buyers.
Terradot is targeting 1 million tonnes of annual carbon dioxide removal by 2035.
HASI manages more than $17 billion in sustainable infrastructure assets spanning areas such as solar, energy storage, wind, renewable natural gas, and energy efficiency.
KEY QUOTES:
“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.”
Julia Sekula, CFO And Co-Founder Of Terradot
“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.”
Annmarie Reynolds, Co-Chief Investment Officer At HASI
“Terradot’s debt financing demonstrates how long-term purchases together with capital markets can support carbon removal deployment.”
Hannah Bebbington Valori, Head Of Frontier
