A&O Shearman represents HASI on largest disclosed debt financing for enhanced rock weathering

The financing will support Terradot’s enhanced rock weathering projects in the U.S. and Brazil and represents the largest publicly disclosed debt financing for enhanced rock weathering to date.

Enhanced rock weathering removes carbon dioxide from the atmosphere by spreading crushed rock on agricultural land, where natural chemical reactions enable carbon to be stored for thousands of years while improving soil health. Founded in 2022 by Stanford scientists and entrepreneurs, Terradot has commercial-scale deployments in Brazil and the U.S. The company is scheduled to deploy one million tonnes of rock across 60,000 hectares (150,000 acres) of farmland in 2026 and 2027.

The financed projects are backed by fixed-price, multi-year offtake agreements with Frontier, a carbon removal buyer coalition whose members include Google, Salesforce, JPMorgan, Shopify, and Stripe. The loan is also supported by carbon delivery insurance from CFC, arranged through Marsh.