The round was led by Engine Ventures and Energy Impact Partners (EIP). The company will use the capital to commercialize its novel biology-based approach to converting cellulosic biomass into ethanol and other products, expand its employee headcount and initiate partnerships with major biofuel producers.

Founded in 2022, Terragia Biofuel is a technology startup on a mission to develop and deploy technology to produce sustainable liquid fuels from cellulosic biomass. Using a novel biological approach to converting cellulosic biomass into ethanol and other products, the company seeks to enable production of low-cost, low-carbon liquid fuels for difficult-to-electrify transport modes, including aviation, ocean shipping and long-haul trucking. Terragia's technology development is supported by partnerships with Dartmouth College and the University of Campinas respectively by funding from the U.S. Department of Energy's Center for Bioenergy Innovation and the Sao Paulo Research Foundation, and by grants to Terragia from the United States Department of Agriculture and the National Science Foundation.