Carbon removal company Terradot is buying competitor Eion to handle bigger contracts from investors like sovereign wealth funds.
Menlo Park, California: Carbon removal startup Terradot is buying competitor Eion, both companies said today.
Big investors wanted to work with larger companies that could handle bigger projects. Eion was simply too small for their needs, according to Eion CEO Anastasia Pavlovic Hans.
Both companies spread crushed rocks on farm fields to absorb carbon dioxide from the air. This process, called enhanced rock weathering (EWR), speeds up a natural method where rocks break down and trap carbon. EWR could be a low-cost way to remove carbon, but it needs large operations spread across many locations.
Despite its promise, there’s still a big difference between what EWR companies want to charge and what buyers want to pay, according to a survey by CDR.fyi.
Terradot works mostly in Brazil using basalt rock, while Eion operates in the United States using olivine. Terradot has investors including Gigascale Capital, Google, Kleiner Perkins, and Microsoft. Eion’s investors include AgFunder, Mercator Partners, and Overture.