Terra CO2 Raises $124M in Series B Funding to Lower Carbon Emissions in Concrete Production

Concrete has been a fundamental material for millennia, yet Terra CO2 is confident it has a more effective approach to producing this vital resource, as evidenced by investor support.

The Golden, Colorado-based startup has raised $124.5 million in a Series B funding round to propel its low-carbon cement alternative into the market.

Cement, which acts as the binder for aggregates to create concrete, significantly influences climate change. The CO₂ emissions from the chemical processes involved in producing Portland cement—the most prevalent type—along with the fossil fuels used in its production, contribute to roughly 8% of global carbon emissions.

This pressing environmental issue has inspired various startups to explore alternatives that can achieve the same durability while minimizing pollution. Alongside Terra CO2, firms such as Furno, Sublime Systems, Partanna, and PHNX Materials are innovating with distinct solutions to address this challenge.

Supplementary cementitious materials (SCM) provide a broad range of options designed to replace Portland cement without sacrificing the desirable qualities of concrete. Terra CO2 creates a specific type of SCM that involves heating naturally occurring silicate-rich rocks until they become glassy. These glass powders show comparable reactivity to traditional Portland cement.

With the new funding, the startup aims to build a large facility near Dallas, anticipated to manufacture 240,000 tons of its supplementary cementitious material (SCM) annually.

The recent funding round for Terra CO2 was co-led by Bill Gates’ Breakthrough Energy Ventures, along with Eagle Materials, GenZero (backed by Temasek), and Just Climate (affiliated with Al Gore). Other participants included Barclays Climate Ventures, Cemex, Prologis, and Siemens Financial Services.

Currently, Terra CO2 claims its SCM can replace up to 40% of Portland cement in concrete mixtures. The company is also working on a next-generation product aimed at completely substituting traditional cement. When compared to conventional Portland cement, this SCM reportedly produces 70% less carbon dioxide.