Google- and Microsoft-backed Terradot acquires carbon-removal competitor

Terradot Swallows Eion in Carbon Removal Consolidation as Big Money Demands Scale

In a seismic shift within the carbon removal sector, California-based startup Terradot has announced the acquisition of its competitor Eion, marking another chapter in the industry’s rapid consolidation. The deal, confirmed today by both companies, is being driven by the growing influence of heavyweight investors—including sovereign wealth funds—who are increasingly demanding that carbon removal startups scale quickly to handle massive contracts.

According to Eion CEO Anastasia Pavlovic Hans, speaking to The Wall Street Journal, the acquisition was largely a matter of size and capacity. “Eion was simply too small,” Hans explained, underscoring how the competitive landscape is evolving to favor companies with the infrastructure and reach to deliver on large-scale carbon removal commitments.

Both Terradot and Eion operate in the emerging field of enhanced rock weathering (ERW), a nature-mimicking technology that accelerates the Earth’s natural carbon cycle. The process involves spreading finely crushed rocks—basalt for Terradot, olivine for Eion—across agricultural fields. When these minerals interact with rainwater and atmospheric CO₂, they trigger chemical reactions that lock carbon into stable mineral forms, effectively removing it from the atmosphere for centuries.

ERW is considered one of the most promising low-cost carbon removal methods, with the potential to scale rapidly across the world’s vast agricultural lands. However, the sector faces a persistent challenge: the gap between what carbon removal companies need to charge to remain viable and what corporate and institutional buyers are willing to pay remains stubbornly wide, according to a recent survey by CDR.fyi.

Terradot’s operations are concentrated in Brazil, leveraging the country’s abundant basalt reserves and extensive farmland. The company has attracted a high-profile roster of investors, including Gigascale Capital, Google, Kleiner Perkins, and Microsoft. Eion, on the other hand, has focused its efforts in the United States and counts AgFunder, Mercator Partners, and Overture among its backers.

The acquisition signals a maturing market where only the most scalable and well-funded players are likely to survive. As demand for credible, verifiable carbon removal surges—driven by corporate net-zero pledges and tightening climate regulations—the pressure is on startups to prove they can deliver at the gigaton scale.

For Terradot, absorbing Eion’s technology, expertise, and U.S. market presence could accelerate its path to becoming a dominant force in the ERW space. For Eion’s investors and team, the deal offers a graceful exit and the promise of greater impact under a larger umbrella.

As the carbon removal industry races to prove its viability, this latest consolidation underscores a hard truth: in the fight against climate change, size and scalability are becoming just as important as innovation.

Tags: carbon removal, enhanced rock weathering, Terradot, Eion, acquisition, climate tech, ERW, carbon capture, sustainability, geoengineering, Microsoft, Google, Kleiner Perkins, AgFunder, CDR.fyi, gigaton scale, climate solutions, basalt, olivine, Brazil, United States, sovereign wealth funds, net-zero, corporate climate pledges

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