Terraton: Scaling Biochar Production - The McDonald's of Carbon Removal

A Streamlined Approach to Biochar Production

Similar to how McDonald’s simplified the process of opening a burger restaurant, Terraton aims to make establishing a biochar facility more accessible. The company’s model provides prospective operators with the necessary equipment, marketing support, and detailed operational guidance.

Introducing Terraton’s “Business-in-a-Box”

Terraton has recently secured $11.5 million in seed funding to advance its innovative “business-in-a-box” strategy for biochar project development. This information was shared exclusively with TechCrunch. The funding round was spearheaded by Lowercarbon Capital and Gigascale Capital.

Key Investors in the Seed Round

• ANA Holdings’ ANA Future Frontier Fund
• East Japan Railway Company’s Takanawa Gateway Global Co-Benefits Fund
• Angel investors including Google’s Jeff Dean
• OpenAI board member Bret Taylor

Addressing the Challenges of Biochar Facility Development

Greg D’Alesandre, co-founder of Terraton, highlights a key issue: most biochar facilities are unique endeavors. Operators often lack the benefit of accumulated knowledge and progressive learning from multiple projects.

Scaling Biochar Production Through Replication

Terraton’s strategy centers on assisting partners in building initial biochar facilities. The knowledge gained from these projects will then be utilized to replicate successful models with other companies entering the biochar market.

Furthermore, the company is developing a SaaS platform to manage plant operations, accurately measure and verify carbon credits, and facilitate their sale to major corporations.

The Potential of Biochar as a Carbon Sink

Co-founder and CEO Kevin Gibbs and D’Alesandre believe biochar is ideally suited for a franchise-style approach. The process involves burning plant waste in an oxygen-deprived environment.

The resulting material, a black substance, can be integrated into soil, effectively storing carbon for centuries while simultaneously enhancing soil quality.

Meeting the Growing Demand for Biochar

“The scientific consensus supports biochar’s efficacy, and it’s available at a competitive price,” Gibbs explained to TechCrunch. “However, current supply is insufficient to meet existing demand.”

Large organizations, such as Microsoft, Google, and Airbus, are actively seeking to purchase greater quantities of biochar but are constrained by limited availability.

Optimizing Biochar Facility Location

Gibbs noted that biochar facilities must be strategically located near sources of agricultural waste to minimize transportation expenses. A single facility can potentially sequester approximately 10,000 metric tons of carbon dioxide annually.

While substantial, this amount may be inadequate for large-scale consumers like AI data centers.

Current Operations in Africa

To date, Terraton has established two facilities in Africa, one in Ghana and another in Kenya. The Ghana facility sources waste from a cocoa producer, while the Kenyan operation utilizes residue from a nut processing facility.

These facilities are projected to remove 20,000 metric tons of carbon dioxide annually.

Empowering Local Ownership

Gibbs emphasized that local businesses own and operate the biochar facilities. “It’s crucial to involve individuals with established relationships with local farmers,” he stated.

“Providing a sense of ownership and investment fosters success, and we are dedicated to supporting their endeavors.”