Carbon removal startup Terradot is acquiring competitor Eion, as announced today. The sale was driven largely by big investors like sovereign wealth funds, which prefer to work with companies capable of handling large contracts. Eion was simply too small, according to Eion CEO Anastasia Pavlovic Hans.
Both companies use a technique called enhanced rock weathering. They spread pulverized rocks on farm fields to absorb carbon dioxide from the atmosphere. This process speeds up a natural reaction and has the potential to be a low-cost carbon removal method, though it requires large and geographically distributed operations.
However, a significant gap remains between what enhanced rock weathering companies would like to charge and what buyers are willing to pay, according to a recent survey.
Terradot, based in California, centers its operations in Brazil and uses basalt as its mineral of choice. Eion operates in the United States and uses olivine.
Terradot’s investors include Gigascale Capital, Google, Kleiner Perkins, and Microsoft. Eion’s investors include AgFunder, Mercator Partners, and Overture.