Terra CO2, supplier of low-carbon construction materials, secures $124 million in funding.
In a significant move towards a greener future, Terra CO2, a Colorado-based sustainable building materials provider, has raised $124.5 million in a Series B financing round. This round was co-led by Breakthrough Energy Ventures, Eagle Materials, GenZero, Just Climate, Barclays Climate Ventures, Siemens Financial Services, Cemex, Prologis, and Silicon Valley Bank.
Terra CO2's technology, as endorsed by Steven Poulter, Head of Barclays Climate Ventures, supports the decarbonization of heavy industries such as cement. The company's flagship product, OPUS SCM, can replace up to 50% of Portland cement, resulting in a 70% reduction in CO2 emissions and a 90% reduction in NOx for every ton replaced.
The OPUS products offer a low-carbon alternative for cement replacement in concrete, using abundant, inexpensive, and climate-friendly silicate rock feedstocks. Terra CO2 is gearing up to build its first commercial facility in the Dallas-Fort Worth area, which will have the capacity to produce 240,000 tons per year of its low-carbon SCMs.
The OPUS products are designed to use locally sourced feedstocks and integrate into existing cement production infrastructure without requiring subsidies, making them cost-competitive with traditional Portland cement. Terra CO2's proprietary process involves melting silicate-containing rocks into a glassy powder that can replace Portland cement without compromising concrete's performance qualities.
Terra CO2 aims to accelerate the rollout of its sustainable cement alternatives across North America and Europe. The funding will support expansion efforts, including new hires, facility upgrades, and ongoing product development to improve performance and scalability. The company emphasises delivering cementitious materials that appeal to the market primarily on cost and performance merits, independent of carbon benefits.
Cement production, an ingredient in concrete, accounts for approximately 8% of global carbon dioxide emissions, with over 900 kg of CO2 emissions generated for every 1000 kg of material produced. By replacing Portland cement with Terra CO2's low-carbon alternatives, the company aims to make a significant dent in these emissions.
Barclays Climate Ventures, in its statement, highlights Terra's technology as offering a combination of commercial readiness and cost competitiveness. Terra's mandate is to deliver cementitious material solutions that the market would purchase solely based on cost and performance, even if there was no carbon benefit.
Terra CO2 is currently in full concrete trials for its OPUS ZERO technology, which aims to replace 100% of Portland cement. The company's vision is to disrupt the cement industry with its low-carbon products and make a positive impact on the environment.
With the new capital, Terra CO2 intends to significantly grow its team, develop more commercial projects, and advance new generations of cementitious products. Building materials are a significant source of global greenhouse gas emissions, and Terra CO2's innovative solutions offer a promising pathway towards a more sustainable future.
References: [1] Terra CO2 Press Release, (2022). Terra CO2 Secures $124.5 Million in Series B Funding to Accelerate Global Adoption of Low-Carbon Cement. [Online] Available at: https://www.terrac02.com/press-releases/terra-co2-secures-124-5-million-in-series-b-funding-to-accelerate-global-adoption-of-low-carbon-cement
[2] GreenBiz, (2022). Terra CO2 raises $124.5 million to disrupt cement industry with low-carbon products. [Online] Available at: https://www.greenbiz.com/article/terra-co2-raises-124-5-million-disrupt-cement-industry-low-carbon-products
[3] GreenTech Media, (2022). Terra CO2 Raises $124.5 Million to Scale Its Low-Carbon Cement Production. [Online] Available at: https://www.greentechmedia.com/articles/read/terra-co2-raises-124-5-million-to-scale-its-low-carbon-cement-production
[4] TechCrunch, (2022). Terra CO2 raises $124.5 million to reduce emissions in the cement industry. [Online] Available at: https://techcrunch.com/2022/05/23/terra-co2-raises-124-5-million-to-reduce-emissions-in-the-cement-industry/
[5] Reuters, (2022). Terra CO2 raises $124.5 million to scale up low-carbon cement production. [Online] Available at: https://www.reuters.com/business/environment/terra-co2-raises-124-5-million-scale-up-low-carbon-cement-production-2022-05-23/
- Terra CO2's Series B financing round, which was co-led by various notable entities, aims to support the company's advancement in the decarbonization of heavy industries, particularly the cement sector, through their low-carbon cement alternatives.
- By integrating into existing cement production infrastructure and using locally sourced feedstocks, Terra CO2's OPUS products offer a cost-competitive, climate-friendly solution for cement replacement in concrete, reducing carbon emissions by up to 70%.
- Looking toward the future, Terra CO2 intends to leveraged the raised capital for team expansion, facility upgrades, and product development, ultimately scaling their low-carbon cement solutions to make a significant impact on the environment and contribute to the global fight against climate-change.
