(Disclosure: AgFunderNews’ parent company, AgFunder, is an investor in Eion)
Eion, a startup with a patented method to measure carbon dioxide removed by enhanced rock weathering (ERW) on farmland, has signed a deal with Microsoft to enable 8,000 tons of permanent CO2 removal and closed a $3 million Series A expansion. Eion plans to place olivine (a natural mineral the company has optimized for accelerated weathering) on farmland in the Mid-Atlantic later this year. Every ton of carbon removed through the purchase will be verified by Eion’s patented direct measurement method according to third-party standards and verification agencies and will be provided over a five-year period. The credits will begin generating revenue for Eion in 2025. The Series A expansion funding comes from agricultural distributor Growmark (through which Eion has access to millions of acres of farmland), AgFunder, Ridgeline, Trailhead Capital, Overture Partners, Mercator Partners, Exelon Foundation and others, and will be used to fulfill new contracts and further invest in research and development.
“Eion’s validation methodology, continuous monitoring of environmental conditions and track record of successful carbon removal set them apart at ERW.” Brian Maass, senior director of energy markets, Microsoft
Soil Fingerprint
Instead of spreading agricultural lime (crushed limestone or calcium carbonate) on farmland to reduce soil acidity, Berkeley-based Eion supplies farmers with crushed olivine, a mineral mined in Norway by partner and investor Sibelco, as a 1:1 replacement.
Rain and soil acidity dissolve the olivine, raising the soil’s pH, improving soil health and absorbing atmospheric CO2. The olivine eventually washes into rivers and then oceans, permanently sequestering carbon. Application rates vary but are typically around one ton per acre, Eion says, and the plan is to permanently remove 10 million tons of carbon each year starting in 2030.
Founded in 2020 by Dr Elliot Chan and Adam Wolf, Eion calculates the carbon dioxide removed from the atmosphere through the process of mineral weathering by measuring trace elements in soils (their “soil fingerprints”) such as magnesium and nickel.
Eion takes soil samples before spreading olivine and monitors the soil’s changes over time to quantify weathering and the CO2 removed during the process. Typically, the mineral dissolves 40-70% six to nine months after spreading, and dissolves to zero after one to four years, making it possible to spread it again.
Eion makes money by selling carbon credits to companies that want to offset their emissions: “Prices today are generally in the range of $300-400 (per tonne of CO2 removed), depending on the buyer’s preferences,” says CEO Anastasia Pavlovic.
Enhanced rock weathering: “Very high potential for permanence and scalability, but low project start-up complexity”
Aon’s business model relies on selling carbon credits, some of which have recently been deemed “worthless,” and the devil is in the details, Pavlovic told AgFunderNews.
“The reason enhanced rock weathering is preferred is because it is very permanent and scalable, yet has low project start-up complexity, meaning it can remove large amounts of carbon in the next few years, as opposed to direct air capture, which takes years to ramp up, given the construction and ramp-up period for the facility.”
“We also note that we do not view other pathways as competitors. Other pathways also remove carbon dioxide permanently, but we need to scale up all of these pathways (and more) as quickly as possible to reach our global climate goals.”
She argued that while there may be a temptation for companies buying carbon credits to choose the cheapest option, they now face much greater scrutiny and are seeing increased interest in credits from companies such as Aion that can provide much stronger documentation to back up their ISO-compliant methodology.
The fact that the Department of Energy is spending $35 million on carbon removal credits from companies using technologies such as ERW and direct carbon capture also indicates the market’s rapid maturation, the company said.
In areas where the price of conventional agricultural lime is high, farmers are “very keen” to tackle rock weathering.
When asked about Aon’s progress, Pavlovic explained, “Projects scheduled for this fall will secure an additional 10,000 acres by 2024. Farmers are very enthusiastic about rock weathering, especially in areas where the price of traditional agricultural lime is high.”
“By participating in rock weathering, they receive a subsidized, low-cost product which can have a significant impact on their annual crop budget. We are also working on more commercial agreements with both offsetters and insetters and look forward to announcing more details in the coming months.”
She added: “Farmers receive money from the credits. Today, ERW projects would not be viable without some income from carbon assets. Farmers are excited about using Eion’s Olivine because they receive a subsidized product, in addition to the pH benefits needed for productive crops. In some areas, they can save more than 50% of the total budget allocated for Agrim. In areas where Agrim is expensive, this savings can be more than $50 per tonne.”
Going forward, Eion is also looking to generate revenue by licensing its patented measurement technology to other companies in the enhanced rock weathering field, Pavlovic said. “This is something we are looking at and we think it’s a good option for Eion’s business going forward.”
