Google signs biggest carbon-removal deal, aims to scale new model

• The project is the largest enhanced rock weathering initiative to date and the first at scale to combine methane reduction with carbon removal, addressing both short-term and long-term climate impacts
• Rice paddies account for 10-12% of global methane emissions; the model could eventually expand across Brazil's 1.5 million hectares of rice fields and replicate in India and Vietnam
• Credit pricing remains above the $100/ton industry target (previous deals implied ~$300/ton), though Terradot's CEO says the new project represents 'a big step toward' that threshold through reduced verification costs

Summary

Key Development:

Google has signed its largest carbon-removal deal to date with Brazilian developer Terradot, spanning over 200,000 hectares in Rio Grande do Sul. The project represents the largest enhanced rock-weathering initiative yet, combining methane abatement with carbon dioxide removal.

Key Figures:

• 1 million metric tons of methane-abatement credits by 2030
• 1 million tons of carbon-removal credits by 2040
• 200,000+ hectares covered in southern Brazil
• Carbon-removal portion is 10x larger than previous rock-weathering projects
• Previous Terradot deal (2024) priced at approximately $300/ton for 90,000 tons
• Target pricing: $100/ton to stimulate broader market demand

Companies & Sectors:

Google (primary investor, also holds equity stake in Terradot since 2024) and Terradot (project developer) are the main players. The Big Tech sector faces mounting pressure to offset emissions from data centers through clean energy and carbon-removal investments.

Market Implications:

The project serves as a template for scaling dual-purpose climate solutions, addressing both short-term methane reduction and long-term carbon removal. Rice paddies contribute 10-12% of global methane emissions. The model could expand across Brazil's 1.5 million hectares of rice fields and replicate in major rice-growing regions including India and Vietnam. Terradot plans pilots in multiple countries by 2026, with commercial scale-up targeted for 2028.

While credit pricing remains above the $100/ton threshold needed for mass adoption, costs are decreasing. The project reduces verification expenses (typically $100+/ton) by allowing longer carbon accumulation periods before third-party verification, marking progress toward economic viability.