Enhanced rock weathering (ERW)developer Mati Carbon announced that it has secured an innovative funding solution from J.P. Morgan.
The company, which garnered industry attention as the winner of the $50 million grand prize from the XPRIZE Carbon Removal competition, shared that it has locked in a novel debt facility from J.P. Morgan that will help it expand its operations.
As a carbon removal developer, Mati Carbon specializes in an ERW approach that entails spreading pulverized volcanic rock on farmland in developing economies.
Through these efforts, the company not only removes excess carbon dioxide from the atmosphere, but it also helps restore degraded soils, fortifying their nutrient content and contributing towards increased crop yields.
According to Mati Carbon, this ERW approach improves the crop results for smallholder farmers by an average of 20%, while simultaneously lowering the need for additives like chemical pesticides.
The financial arrangement with J.P. Morgan, negotiated on commercial terms with credit backing from the Schmidt Family Foundation, serves as proof of the power of institutional capital for fueling large-scale, durable CO2 removal solutions.
With this financial boost, Mati Carbon will work on expanding its ERW reach in India and Sub-Saharan Africa, looking to establish a presence in other geographies in the Global South.
The company has shared that by the end of this year it expects to partner with 30,000 smallholder farmers based in countries like India, Tanzania, and Zambia.
Relevant: Meet The Big Winners Of The XPRIZE Carbon Removal Competition
Additionally, financial means will be channeled towards acquiring cutting-edge regional laboratory facilities and forming strategic cooperations as a way to accelerate a global ERW adoption.
Beyond accumulating substantial funding for its operations both through the collaboration with J.P. Morgan and the XPRIZE competition, Mati Carbon has also managed to attract buyers for its carbon credits, boasting clients like Shopify and H&M.
The integrity of these carbon credits is ensured through a monitoring, reporting, and verification (MRV) framework, which was developed by Mati Carbon in partnership with IIT Kanpur and Yale University.
Read more: Mati Carbon Makes A Landmark Durable CDR Delivery For Frontier
