Climate-tech startup Terraxy, a spinout from King Abdullah University of Science and Technology (KAUST), has secured $3 million in a Seed-2 funding round. The investment was led by Wa’ed Ventures, Aramco's venture capital arm, with participation from KAUST. This capital will accelerate the scaling of its soil regeneration and carbon capture technologies for desert environments.
Scaling Soil Regeneration Technology
The new funding will facilitate Terraxy's transition from pilot programs to full-scale industrial production across Saudi Arabia. A key part of this expansion is a new 30,000-square-meter commercial facility in Al Zulfi. This development marks a significant milestone in the company's journey toward widespread commercialization.
Anas Algahtani, CEO of Wa’ed Ventures, expressed confidence in deep-tech solutions that address tangible challenges in the Kingdom. He highlighted Terraxy's ability to translate robust science into a deployable, industrial solution. The investment aligns with Wa'ed Ventures' focus on backing innovations that advance Saudi Arabia's sustainability and economic goals.
Addressing Environmental Challenges
Soil degradation is a significant global issue, impacting agricultural productivity and weakening ecosystems. In Saudi Arabia, the challenge is amplified by sandy soils that are inefficient at retaining water and nutrients. These conditions limit landscaping, farming, and the country's ambitious large-scale greening initiatives.
Terraxy addresses these issues with its proprietary soil enhancer, Carbosoil, which improves resource-use efficiency in arid conditions. The product can boost plant growth and yield by up to 70 percent using the same resource inputs. This innovation is vital for enhancing the sustainability of agricultural and greening projects in the region.
From University Research to Market Application
Originating from advanced research at KAUST, Terraxy exemplifies academic innovation transitioning to commercial viability. The company has successfully validated its technology through pilot production and strategic collaborations with industry partners. This journey demonstrates a clear pathway from the laboratory to market in support of national sustainability priorities.
The startup's development was bolstered by KAUST's comprehensive innovation ecosystem and its advanced research infrastructure. Co-founder Professor Himanshu Mishra noted the critical support from the National Transformation Institute (NTI) at KAUST. This environment was an essential element in enabling the company's growth and technological maturation.
Regulatory Support and National Alignment
Terraxy's progress has been accelerated through its participation in the Regulatory Sandbox of the Ministry of Environment, Water and Agriculture (MEWA). This program allows for the testing and validation of emerging environmental technologies under real-world conditions. It provides a structured pathway for innovative companies to prove their solutions and prepare for market entry.
H.E. Dr. Abdulaziz Almalik of MEWA emphasized that soil health is fundamental to the Kingdom's food security and land rehabilitation goals. He noted the sandbox helps local technologies navigate validation pathways and accelerates their responsible deployment. Terraxy's success shows how innovation, regulation, and investment can converge to address national priorities.
A Dual-Impact Innovation for Sustainability
Beyond improving soil fertility, Terraxy's technology offers a significant contribution to carbon capture and storage. Ahmad O. Al-Khowaiter of Aramco highlighted that the solution addresses both land degradation and carbon removal simultaneously. The technology is capable of durably storing carbon dioxide for centuries, presenting a dual-impact innovation.
This $3 million investment propels Terraxy into its next growth phase, enabling industrial-scale production of its soil-enhancing technology. The funding underscores a commitment to deep-tech solutions supporting Saudi Arabia's Vision 2030 sustainability goals. As Terraxy expands, it is poised to play a crucial role in greening desert landscapes and advancing the Kingdom's environmental ambitions.