Terradot's $34 Million Loan Funds Rock Weathering Expansion

Terradot secured a $34 million senior secured term loan from HA Sustainable Infrastructure Capital (NYSE: HASI) for carbon-removal projects in the United States and Brazil, the companies said. The loan will finance enhanced rock weathering, in which crushed rock spread across farmland captures and stores atmospheric carbon dioxide.

According to Terradot and HASI, the financing package combines senior secured debt, contracted carbon-removal revenue and delivery insurance. The companies said the structure supports commercial-scale deployment.

The financing structure

• Senior secured debt: The $34 million loan provides project financing backed by contractual arrangements and associated collateral.
• Contracted revenue: Fixed-price, multiyear carbon-removal purchase agreements with Frontier, a coalition supported by companies including Google, Salesforce, JPMorgan, Shopify and Stripe.
• Delivery protection: Carbon-delivery insurance from CFC, arranged through Marsh. The companies did not disclose the policy’s specific coverage limits or terms.

Unlike venture capital, which typically finances company operations and technology development in exchange for equity, the loan adds a non-equity funding source. Terradot said the capital will support expansion without making equity investment the company’s exclusive route.

“Lenders only back what they can predict,” said Julia Sekula, chief financial officer and co-founder of Terradot.

“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.”

What does this change for carbon-removal developers?

Corporate offtakes can support debt in a sector that has traditionally depended heavily on venture capital, according to Terradot and HASI. For developers, the practical change is that contracted demand can unlock project financing before carbon credits are fully delivered and verified.

“By providing predictable demand through large, multi-year offtake agreements, Frontier aims to help companies like Terradot secure the capital they need to build and scale,” Hannah Bebbington Valori, head of Frontier, said.

Frontier was established to accelerate carbon-removal technologies by facilitating long-term purchases from companies developing new methods for removing carbon dioxide from the atmosphere. Its participation gives Terradot a commercial foundation for the HASI-backed projects, according to Terradot and Frontier.

The multiyear offtake agreements provide revenue visibility before carbon removal is fully delivered and verified. Terradot and Frontier said that visibility allows developers to finance deployment infrastructure in advance rather than depend exclusively on equity.

CFC’s carbon-delivery insurance adds protection against delivery risk within the financing structure, with Marsh arranging the coverage. Terradot and HASI said delivery still depends on environmental conditions, operational performance, and successful measurement and verification over time.

Together, the long-term contracts and insurance reflect an effort to use financing tools already familiar in infrastructure markets. Terradot and HASI said the structure could support larger deployments as enhanced rock weathering matures.

For HASI, the transaction extends its sustainable-infrastructure financing activity into enhanced rock weathering, an emerging part of the carbon-removal market. HASI said it manages more than $17 billion in assets across utility-scale solar, energy storage, onshore wind, distributed energy systems, renewable natural gas and energy efficiency.

The firm said it focuses on infrastructure assets that support the energy transition while generating returns through structured capital arrangements. Reynolds connected Terradot’s contracted demand, field data and repeatable deployment model to HASI’s investment criteria.

“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, said.

Deployment and scale

Terradot plans to deploy approximately 1 million tonnes of rock across 60,000 hectares, or roughly 150,000 acres, of farmland in the United States and Brazil during 2026 and 2027. The company said the rollout would substantially expand operations and advance enhanced rock weathering toward commercial scale.

Through natural chemical reactions, the minerals interact with carbon dioxide and water, allowing carbon to be stored in stable forms over long periods, according to Terradot. The company said the process can influence soil chemistry and potentially improve soil health, depending on rock composition and local conditions.

Terradot’s model covers rock sourcing and distribution, deployment with agricultural partners, and measurement of resulting carbon removal. The company said this integration lets it manage both project delivery and its measurement, reporting and verification systems.

Track record and 2035 target

Terradot was founded in 2022 by Stanford scientists and entrepreneurs and has developed enhanced rock-weathering operations in the United States and Brazil. The company said its scientific team is led by co-founder and Stanford University professor Scott Fendorf, alongside geochemistry and soil-science specialists.

Terradot has raised $58 million from Google, Microsoft, Gigascale Capital, Valor Capital and Acre Venture Partners, along with individual investors Sheryl Sandberg, John Doerr and George Roberts. The company also has carbon-removal purchase agreements with Google, Microsoft and Frontier.

Terradot has issued certified carbon-removal credits under Isometric’s Enhanced Weathering in Agriculture protocol and through Puro following its 2026 acquisition of competitor Eion. The company said the Eion acquisition expanded its U.S. operations and added capabilities to its carbon-removal platform.

Terradot targets annual removal of 1 million tonnes of carbon dioxide by 2035. The company said reaching that goal requires a larger agricultural deployment network, continued project financing and more verified removal capacity.

The $34 million loan funds the near-term projects while Terradot builds the operating history needed for larger institutional capital. Terradot’s 2026-2027 rollout will test whether contracted demand, field data and deployment performance can support repeat financing at larger scale.