Terraton Secures $11.5 Million Seed Round to Accelerate Carbon Removal with Biochar Innovation
August 31, 2025
byFenoms Startup Research
Terraton, a climate-tech startup focused on large-scale carbon removal, has successfully raised $11,500,000 in Seed funding. The round drew support from Lowercarbon Capital, Gigascale Capital, Jeff Dean, Bret Taylor, Pete Koomen, Lars Rasmussen, John Lilly, Tom Stocky, Tim Rann, Ryan Aytay, Matt Portman, Stephanie Hannon, ANA Holdings Inc.’s ANA Future Frontier Fund L.P., and East Japan Railway Company’s TAKANAWA GATEWAY Global Co-Benefits Fund L.P.
Founded by Kevin Gibbs, Terraton is pioneering biochar-based carbon removal - a scalable and scientifically proven method to lock carbon into soils while enhancing agricultural productivity. The fresh capital will accelerate the company’s mission to remove carbon at gigaton scale, fight climate change, and support farmers worldwide in building resilient ecosystems.
The Product: Turning Biomass into Climate Solutions
Terraton’s approach centers around biochar, a stable form of carbon produced from biomass through pyrolysis. Instead of letting agricultural waste decompose and release carbon dioxide back into the atmosphere, Terraton transforms it into biochar, which can then be stored in soil for centuries.
This dual-purpose solution has enormous potential:
- Carbon Removal: Biochar permanently sequesters atmospheric carbon.
- Soil Health: Improves fertility, water retention, and microbial activity.
- Circular Economy: Converts waste into valuable environmental assets.
- Scalability: Biochar production can be deployed globally with relatively low infrastructure requirements.
Terraton’s innovation lies in making biochar deployment economically viable at scale, ensuring that farmers, corporations, and governments can adopt it widely as part of climate action strategies.
Why This Matters Now
The urgency of addressing climate change has never been greater. According to the Intergovernmental Panel on Climate Change (IPCC), the world must remove 10 gigatons of carbon annually by 2050 to limit global warming to 1.5°C. Current carbon removal technologies are expensive, unproven at scale, or years away from commercialization.
Biochar stands out as one of the few methods that is scientifically validated, affordable, and immediately deployable. The global biochar market, valued at $1.7 billion in 2022, is projected to reach $6.3 billion by 2030, growing at a CAGR of 14.5%. Terraton’s mission is aligned with this momentum, combining climate impact with measurable co-benefits for agriculture.
And here’s where the deeper founder insight emerges: the smartest startups don’t always invent brand-new categories - they scale what’s already proven but overlooked. Biochar has existed for centuries, used by indigenous Amazonian farmers to enrich soils long before “carbon removal” was a phrase. What Terraton is doing isn’t reinventing - it’s re-framing and industrializing. For founders, that’s a gold mine: when you take something timeless, wrap it in modern infrastructure, and make it economically irresistible, you create defensibility that shiny new tech often lacks. Investors and customers gravitate not toward novelty for its own sake, but toward solutions that feel inevitable. The real moat comes from making the obvious finally unavoidable.
Industry Outlook: The Carbon Removal Economy
The carbon removal sector is growing rapidly, driven by government policies, corporate net-zero pledges, and investor appetite for climate solutions.
- Market Growth: Carbon removal credits are expected to grow into a $1 trillion market by 2050.
- Corporate Demand: Over 4,000 companies have set net-zero or carbon neutrality targets, fueling demand for scalable solutions.
- Policy Momentum: Governments are investing billions into carbon removal technologies, including the U.S. Department of Energy’s $3.5 billion funding for carbon capture hubs.
- Agriculture Synergy: Biochar adoption improves yields, making it attractive to the $3 trillion global agriculture sector.
Terraton sits at the intersection of these forces, offering a pathway that is not only climate-positive but also economically practical.
The Investor Edge
The strength and diversity of Terraton’s investors reflect its wide appeal:
- Lowercarbon Capital & Gigascale Capital: Renowned climate funds with a track record of backing game-changing environmental startups.
- Tech Visionaries: Investors like Jeff Dean (Google AI) and Bret Taylor (Salesforce, Twitter) bring deep technical and operational expertise.
- Global Corporates: Strategic investors such as ANA Holdings and East Japan Railway Company align Terraton with global infrastructure and sustainability initiatives.
This combination of climate capital, tech leadership, and corporate backing provides Terraton with both resources and distribution channels to scale globally.
What’s Next for Terraton
With $11.5 million secured, Terraton plans to:
- Expand biochar production facilities, enabling larger-scale deployment.
- Partner with farmers globally to integrate biochar into agricultural practices.
- Develop monitoring and verification tools to ensure carbon credits are transparent and verifiable.
- Build corporate partnerships, supplying reliable carbon removal credits to companies committed to net-zero.
The next two years will be crucial as Terraton proves biochar’s scalability and sets benchmarks for gigaton-level carbon removal.
Final Thoughts
Terraton’s $11.5 million Seed Round is more than just a funding milestone - it’s a bold bet on one of the most practical, scalable, and ancient solutions to the climate crisis. By transforming waste biomass into long-term carbon storage and soil improvement, the company is showing that the future of innovation may come from the wisdom of the past.
For the startup ecosystem, the key takeaway is clear: sometimes the most disruptive ideas are the ones hiding in plain sight. Terraton’s journey reminds founders that scaling proven solutions can be just as powerful - if not more - than chasing untested technologies.