July 8, 2025 — U.S.-based sustainable building materials company Terra CO₂ has raised $124.5 million in Series B funding to accelerate the rollout of its low-emission alternatives to traditional cement.

The company plans to use the new capital to construct its first commercial-scale facility, which will produce climate-friendly cement substitutes for the construction sector. The plant, expected to be located near Dallas–Fort Worth, aims to process up to 240,000 tons per year of alternative materials.

Next-Gen Cement Alternatives

Terra CO₂ has developed a proprietary process that transforms abundant natural materials into a cement substitute that cuts carbon emissions by over 60% compared to conventional Portland cement. The materials are designed to integrate seamlessly with existing infrastructure, offering a drop-in solution that doesn’t require changes to existing production or construction workflows.

The company’s solution also significantly reduces other industrial pollutants, such as nitrogen oxides, and is designed to meet performance standards required for use in commercial concrete.

Strategic Growth Plans

With this latest funding, Terra CO₂ plans to:

  • Launch commercial production with its first major facility

  • Expand operations across the U.S. and Europe

  • Support trials for a next-generation zero-carbon cement formula currently under development

The startup aims to position itself as a major player in the decarbonization of one of the most emissions-intensive industries: cement manufacturing, which is estimated to contribute around 8% of global CO₂ emissions.

Sector Outlook

As construction companies and governments increase their focus on emissions reduction, demand for alternative building materials is growing. Terra CO₂’s technology offers a cost-competitive pathway to reduce the environmental impact of cement use without sacrificing performance or scale.

This funding round marks a significant step toward commercializing green materials in mainstream construction, and Terra CO₂ is now one of the best-capitalized startups working in the industrial decarbonization space.