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Low-carbon building materials company Terra CO2 has raised $82 million in the first close of a Series B round to help commercialize its sustainable cement, the company tells Axios.

Why it matters: Investors are still willing to back climate hardtech if it's got customers and is on the cusp of commercialization.

Zoom in: The round was co-led by Just Climate, the low-carbon growth firm launched by Al Gore's Generation Investment Management, as well as GenZero, the climate investing arm of Singapore's sovereign wealth fund Temasek. 

Eagle Materials, a publicly traded construction materials company, was the third co-lead, and existing investor Breakthrough Energy Ventures also participated.

Terra expects a second round of investors to sign on to the Series B raise by late Q1 2025. That could be an additional $30 million to $40 million, estimated Terra CEO Bill Yearsley.

Terra plans to use the funds to build its first commercial plant in Cleburne, Texas, that can make a quarter of a million tons per year of its supplementary cementitious material to be blended to produce low-carbon cement. Terra has pre-sold that first plant to Asher Materials, a subsidiary of NSG Logistics.

How it works: Terra, based in Golden, Colorado, makes a reactor that exposes common silicate rocks to extreme heat to turn it into glassy particles (called flash vitrification). The particles are reactive, which gives them the cementing qualities. 

Terra can use many different kinds of silicate rocks to make its cement material, including granite and basalts, and it sources the rocks from construction materials companies and existing aggregate mines. "The No. 1 failure point of most of these young technologies is going to be raw material availability," said Yearsley.

Terra is first making and selling a low-carbon supplementary cementitious material that can be blended with traditional cement. Down the road, Terra will produce a net-zero cement that can replace traditional cement.

The company has done numerous pilot projects for its blended product, including a Porsche Sugar Land dealership in Houston.

The big picture: A handful of VC-backed low-carbon cement companies have emerged in recent years, including Fortera and Brimstone. 

Most have found that selling a product that can blend with traditional cement has been key to growing sales. 

The cement industry is a tricky sector to decarbonize, as building and construction companies are naturally risk-averse and slow-moving.

New cement plants are also capital-intensive and require extensive fundraising to construct. 

The bottom line: Low-carbon cement could be critical for slashing carbon emissions from construction, but it is a challenging sector. 

Exclusive: Terra closes $82M co-led by Just Climate, Temasek arm

The company expects a second close at the end of March

A low carbon cement material created by Terra CO2 and used at a demonstration pour at the Porsche Sugar Land dealership in Houston.

A low-carbon cement material created by Terra CO2 is poured at the Porsche Sugar Land dealership in Houston. Photo: Courtesy of G. Lyon Photograph, Inc.

Low-carbon building materials company Terra CO2 has raised $82 million in the first close of a Series B round to help commercialize its sustainable cement, the company tells Axios.Why it matters: Investors are still willing to back climate hardtech if it&#x27;s got customers and is on the cusp of commercialization.

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Exclusive: Terra closes $82M co-led by Just Climate, Temasek arm

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