Terra CO2 Raises $124.5M to Expand Sustainable Cement Production

US climate technology company Terra CO2, which specializes in sustainable building materials, has raised $124.5 million in Series B funding to scale its low-carbon cement business in North America and Europe. The round has attracted a set of high-profile institutional and strategic investors simultaneously, including Breakthrough Energy Ventures, Eagle Materials, GenZero, Just Climate, Barclays Climate Ventures, Siemens Financial Services, Cemex, and Prologis.

Investment is timely since the building sector is under increasing pressure to de-carbonise. One of the biggest industrial emitters of carbon is cement production, and it is responsible for nearly 8% of the world's total CO₂ emissions. Terra CO2 sets out to solve this problem by scaling the amount of low-carbon cement substitutes that are able to replace most of the standard Portland cement without affecting performance or cost.

The new capital will enable commercial application of Terra's OPUS SCM and OPUS Zero solutions. OPUS SCM is a cementitious supplement product that can be used to replace up to 50% of Portland cement, whereas OPUS Zero targets full replacement. The two products are manufactured employing abundant silicate minerals from current aggregate mines and therefore enable the solution to be scalable and resource-light. Terra's product technology is compatibly integrated into existing infrastructure in a simple, inexpensive manner to prevent retrofitting costs and extend deployment at the same time, making it more feasible for large projects.

With the new capital, Terra will begin constructing its first high-tech processing facility in the Texas Dallas-Fort Worth region. The 240,000 tonnes-per-year-capacity plant will play a key role in demonstrating the company's ability to meet commercial requirements. The financing will also go towards expanding personnel, upgrading plants, and continued product development for increased efficiency and performance.

Along with equity financing, Terra also raised a credit facility co-led by Silicon Valley Bank (a First Citizens Bank subsidiary) and Stifel Bank. The further financial leeway will be used to fulfill working capital requirements and strengthen the position of the company during its shift towards commercial production scale.

Terra's most important innovation in its technology is its drop-in reactor, which makes it possible to manufacture and integrate without re-engineering standard cement plant hardware. This feature is considered to be a huge benefit in a capital-intensive industry with technology adoption cycles that are sluggish.

As reported by Terra, the firm's alternative cements have been third-party tested and proved equal to or superior to conventional materials. Such characteristics are most critical to commercial take-up, given that contractors and developers would not be keen on migrating to substitutes that compromise on longevity or project schedules.

The backing of major investors is representative of increasing market faith in low-carbon building solutions. Barclays Climate Ventures, which joined the round, pointed to Terra's commercial readiness for deployment and alignment with wider decarbonisation objectives. The involvement of Siemens and Cemex also reflects sectoral demand to deploy sustainable materials and future-proof supply chains.

With subsidies for American green technology declining, companies and investors are turning to alternatives that make economic sense in the lack of subsidies. Terra's strategy—products competing on price and performance only—is aligned with the changing market forces.

Worldwide, the cement industry faces mounting pressure as nations implement more stringent climate regulations and adopt net-zero targets. Technologies cutting carbon emissions that do not compromise efficiency or structural integrity are poised to pick up pace, particularly in growth-leading construction markets such as Europe and the United States.

Terra's growth comes at the same time as increased worldwide interest in alternative construction products and carbon capture technology. The recent opening of the world's first-ever carbon capture factory producing cement, for instance, has put into sharp relief the urgency and possibility for such innovation.

Terra, a Golden, Colorado firm, is setting itself up as a scalable climate solution for one of the world's most carbon-heavy industries. By providing products that can be used to directly replace cement without new materials or construction methods, the firm is hoping to make it simpler to incorporate more sustainable methods in a traditionally conservative sector.
The wider backdrop to Terra's investment illustrates a change in investor sentiment towards commercially sensible solutions which can be measured by their climate action. As the built environment itself is generating a proportion of the emissions that is considerable, the focus is shifting towards materials and how they support sustainability.

Series B funding round is a vote of confidence in Terra's expansion plan and makes it stronger to play in this new arena. It positions Terra for long-term growth and innovation in products. As the market dynamics shift and mounting pressure is there to achieve the global climate goals, Terra's business model of compatibility, scalability, and low-emission manufacturing makes it a pioneer to decarbonize building.

Source: Written by Nirmal Menon | Published 4 July 2025

Image Credit: Climate Insider