Google and Microsoft-backed Terradot acquires carbon removal competitor

In a significant move within the carbon removal industry, Terradot has announced its acquisition of fellow startup Eion. This strategic sale comes as major investors, including sovereign wealth funds, express a keen interest in partnering with firms capable of managing substantial contracts. Eion, which specializes in a similar carbon capture method, was deemed too small to meet the demands of these large investors, as noted by Eion CEO Anastasia Pavlovic Hans in a statement to The Wall Street Journal. Both Terradot and Eion utilize enhanced rock weathering (EWR) techniques, which involve spreading pulverized rocks over agricultural fields to enhance the absorption of atmospheric carbon dioxide. EWR accelerates a natural geological process, presenting a promising, cost-effective solution for carbon removal. However, there remains a considerable gap between the pricing expectations of EWR companies and the willingness of buyers to pay, as highlighted by a recent survey from CDR.fyi. Terradot, based in California, has focused its efforts in Brazil, primarily using basalt as its carbon-absorbing mineral. In contrast, Eion operates within the United States and employs olivine for its carbon capture initiatives. The investor rosters of both companies reflect their ambitions, with Terradot backed by notable names such as Gigascale Capital, Google, Kleiner Perkins, and Microsoft, while Eion counts AgFunder, Mercator Partners, and Overture among its supporters.