Carbon removal innovator Terradot has announced a major financial milestone, securing a senior secured term loan of up to $34 million from climate solutions and sustainable infrastructure investment firm HASI. The substantial capital infusion is earmarked to support the company’s ambitious enhanced rock weathering (ERW) carbon removal projects spanning across the United States and Brazil, marking a crucial step forward for both the company and the broader carbon dioxide removal industry.
The transaction represents a notable industry benchmark, standing as the largest disclosed debt financing to date for enhanced rock weathering. By tapping into institutional debt financing, Terradot is signaling a transition for the nascent carbon removal sector from early-stage venture backing toward more traditional, infrastructure-grade project finance. This shift indicates that financial institutions are increasingly willing to treat reliable carbon removal operations as predictable, revenue-generating assets.
The funded ERW projects are underpinned by a robust commercial foundation, backed by fixed-price, multi-year offtake agreements with high-profile carbon removal buyer coalitions. Notably, these include agreements with Frontier, an advance market commitment buyer coalition whose members feature global corporate powerhouses such as Google, Salesforce, JPMorgan, Shopify, and Stripe. These pre-secured offtake contracts provide the revenue visibility and predictability required by lenders like HASI to commit tens of millions of dollars in debt capital.
Julia Sekula, Chief Financial Officer and Co-Founder of Terradot, emphasized the significance of the financing structure in validating the company’s operational model. Lenders only back what they can predict, she noted, explaining that with contracted demand and years of field data allowing the company to effectively bound risks and forecast delivery, this investment marks an important step in bringing project capital to enhanced rock weathering. Furthermore, Sekula highlighted that the capital will help build the operational record necessary for even larger deployments in the future.
Founded in 2022 by a team of Stanford scientists and entrepreneurs, Terradot operates in the specialized field of engineered natural climate solutions. The company provides a carbon removal solution based on accelerating the natural, geological process of rock weathering. Over geological timescales, carbon dioxide from the atmosphere dissolves in rainwater and reacts with silicate rocks, ultimately locking the carbon away safely in stable mineral forms. Terradot significantly speeds up this natural mechanism by crushing basalt rock into fine particles and spreading it over vast expanses of agricultural land.
Beyond its primary function of removing atmospheric carbon dioxide, this application of basalt rock provides valuable co-benefits for the agricultural sector. As the rock weathers in the soil, it releases essential nutrients that can improve soil health, enhance crop resilience, and reduce the need for certain traditional soil amendments, creating a dual-benefit model that appeals to both corporate sustainability buyers and participating farmers.
To execute its vision on an industrial scale, Terradot has laid out an aggressive deployment schedule. The company is slated to deploy one million tonnes of pulverized rock across 60,000 hectares, equivalent to approximately 150,000 acres of farmland, across the United States and Brazil throughout 2026 and 2027. This rapid scaling is supported by a growing roster of committed offtake agreements with corporate heavyweights. Alongside its participation in the Frontier coalition, Terradot has established direct supply agreements with major technology leaders including Google and Microsoft, cementing its position as a trusted provider in the corporate net-zero supply chain.
The decision by HASI to finance Terradot reflects a growing alignment between institutional sustainable infrastructure investors and technology-driven climate solutions. Annmarie Reynolds, Co-Chief Investment Officer at HASI, pointed out that Terradot successfully combines several key pillars that the investment firm looks for in every opportunity. These include contracted demand, rigorous and verifiable field data, a repeatable deployment model, and a thoughtful, disciplined approach to managing operational and financial risks.
As the carbon removal industry matures, the ability to secure non-dilutive debt financing through senior secured term loans will likely serve as a critical catalyst for companies aiming to transition from pilot scales to gigaton-scale operations. With its latest funding secured from HASI and a robust pipeline of agricultural land and corporate buyers lined up across the Americas, Terradot is positioned to accelerate its operational footprint and validate enhanced rock weathering as a scalable, permanent, and financeable pillar of global climate action.
