Terradot acquires Eion to scale carbon removal operations

Carbon-removal startup Terradot is acquiring its competitor Eion, the two companies announced today. The transaction consolidates two players in the enhanced rock weathering (EWR) space. The sale was driven largely by investors wanting to work with companies that can handle large contracts. According to Eion CEO Anastasia Pavlovic Hans, her company was unable to meet this demand on its own. “Eion was simply too small,” Hans said, explaining the decision behind the sale.

Both companies utilize EWR, a carbon-removal method that involves spreading pulverized rocks on farm fields to absorb carbon dioxide from the atmosphere. While EWR speeds up a natural process and has the potential to be a low-cost way to remove carbon, the process requires large and distributed operations to be effective. Currently, the broader market faces commercial challenges. According to a survey by CDR.fyi, the spread remains wide between what EWR companies would like to charge and what buyers are willing to pay.

The acquisition brings together two companies with distinct geographic and mineral approaches. California-based Terradot centers its operations in Brazil, where it works with basalt as its mineral of choice for carbon absorption. In contrast, Eion operates in the U.S. and uses olivine.

The transaction also highlights the different backing behind each startup. Terradot’s investors include Gigascale Capital, Google, Kleiner Perkins, and Microsoft. Meanwhile, Eion’s investors include AgFunder, Mercator Partners, and Overture. By consolidating, the combined entity seeks to build the operational scale required to secure and execute larger carbon-removal contracts.

Why it matters

The acquisition consolidates two enhanced rock weathering companies, reflecting a broader trend where investors are prioritizing scale and contract capacity over smaller, fragmented operations in the carbon removal market.