Terragia Biofuel, a technology startup focusing on the development of next-generation biofuels, has announced the completion of a $6 million seed funding round. The investment was led by Engine Ventures and Energy Impact Partners (EIP). The company intends to utilize the capital for commercializing its unique biology-based method to convert cellulosic biomass into ethanol and other products, expanding its workforce, and establishing partnerships with prominent biofuel producers.
Terragia’s technology involves the use of engineered thermophilic bacteria to decompose cellulosic biomass and produce ethanol and other chemical compounds. This innovative process differentiates itself from traditional cellulosic biofuel production methods by employing a one-step “consolidated” bioprocessing without additional enzymes. Furthermore, the company’s technology incorporates mechanical disruption during fermentation instead of relying on expensive thermochemical pretreatment procedures.
Director of the National Renewable Energy Laboratory Martin Keller commented, “Cellulosic biofuels are a route to low-carbon fuels for aviation and other difficult-to-electrify transport modes as well as CO2 removal from the atmosphere, both of which are critical for climate stabilization. One-step biological conversion of cellulosic biomass without added enzymes or thermochemical pretreatment has clear cost reduction potential relative to other process concepts.”
Terragia CTO and Co-Founder Lee Lynd and Director of the Advanced Second Generation Biofuel Lab at the University of Campinas, Brazil added, “Conversion of ethanol to fuels for planes, ships, and trucks is a leading option for approximately half of future global transportation energy demand, for which electrification is likely impractical, corresponding to a trillion dollar market. With full penetration of this market, Terragia’s technology is projected to displace 3 gigatons of CO2 emissions annually and enable capture of a yet larger amount of CO2.”
In partnership with Dartmouth College and the University of Campinas, the ongoing development of Terragia’s technology is supported by funding from the U.S. Department of Energy Center for Bioenergy Innovation and the São Paulo Research Foundation, by grants from the U.S. Department of Agriculture and National Science Foundation, as well as private capital.
“Terragia has an exciting opportunity to succeed where others in the cellulosic biofuel industry have not. The company’s technology provides a radically different approach that uses biology to reduce the high costs and scale of conventional cellulosic biofuel production,” said Katie Rae, CEO and Managing Partner of Engine Ventures. “With an experienced management team, deep industry experience and a joint development agreement with a major U.S. biofuel producer already underway, Terragia’s go-to-market approach has the potential not only to meet future global transport demand but to create low carbon biofuel products at a price point competitive with fossil fuels.”
“We are proud to support Terragia on their path to revolutionizing cellulosic ethanol and sustainable aviation fuel (SAF) production,” said Ashwin Shashindranath, Partner at Energy Impact Partners. “Low-carbon fuels are a cornerstone of the energy transition, and we think Terragia has the right team and technology to become a leader in the field.”
