Terraxy Raises $3 Million to Scale Desert Greening and Soil Regeneration Technology in Saudi Arabia

Terraxy, a King Abdullah University of Science and Technology (KAUST) spinout, has raised $3 million in a Seed-2 financing round led by Wa'ed Ventures, the venture capital arm of Aramco, with participation from KAUST. The funding will underwrite the company's move from pilot-scale production to industrial deployment across Saudi Arabia, including construction of a 30,000-square-meter commercial facility in Al Zulfi to manufacture its soil-regeneration product, Carbosoil.

"Our investment in Terraxy reflects our conviction in deep-tech solutions that address real challenges in Saudi Arabia while offering scalable commercial potential. What differentiates Terraxy is not only the strength of its underlying science, but its ability to translate that science into a deployable, industrial solution," said Anas Algahtani, CEO of Wa'ed Ventures.

Terraxy's proprietary product, Carbosoil, was developed from KAUST research and is designed specifically for sandy, degraded soils prevalent in Saudi Arabia. The company says Carbosoil can deliver up to 70% improvement in plant growth and yield using the same water and nutrient inputs, addressing poor moisture and nutrient retention in desert soils. In addition to enhancing vegetation performance, Carbosoil functions as a carbon storage medium; Terraxy reports that the product is capable of storing CO₂ durably for centuries, positioning it as both a soil-health and carbon-removal technology.

Context and validation

• Regulatory testing: Terraxy has progressed through the Ministry of Environment, Water and Agriculture (MEWA) Regulatory Sandbox, a program that enables emerging environmental technologies to be tested and validated under real-world conditions.
• Research to industry pathway: KAUST's National Transformation Institute (NTI) provided translation support and research infrastructure that Terraxy credits with enabling its transition from lab and pilot scale toward full commercial production.
• Strategic backing: The Seed-2 round is led by Wa'ed Ventures with KAUST participation; Aramco's sustainability investment stance was reiterated by Ahmad O. Al-Khowaiter, Aramco Executive Vice President of Technology & Innovation and Chairman of Wa'ed Investment Committee, who said, "Reducing emissions across hard-to-abate sectors requires practical, scalable solutions grounded in strong science. Terraxy's technology addresses land degradation and carbon removal simultaneously and is capable of storing CO₂ durably for centuries."
• KAUST endorsement: Dr. Ian Campbell OBE, Senior Vice President at NTI, KAUST, highlighted the institutional role in scaling the technology: "We are delighted to see the maturation of KAUST technology from research to lab scale, through pilot scale, and now to full-scale production. NTI has enabled this transition by supporting technologies to scale in ways that contribute to national priorities."

The investment and regulatory progress come as Saudi Arabia accelerates greening and sustainability initiatives aligned with national priorities. H.E. Dr. Abdulaziz Almalik, MEWA's Deputy Minister for Research & Innovation, framed Terraxy's development as an example of coordinated innovation, regulation, and investment: "Soil health is foundational to the Kingdom's food security, water efficiency, and land rehabilitation ambitions. Through the Regulatory Sandbox, the Ministry is enabling Saudi-developed technologies to navigate environmental and product validation pathways while accelerating their responsible deployment and market adoption."

Outlook

With $3 million in new capital and a planned 30,000-square-meter facility in Al Zulfi, Terraxy aims to scale commercial manufacturing of Carbosoil and move from demonstration projects to broader deployment across landscaping, agriculture, and land-restoration efforts in Saudi Arabia. The company's dual focus on improving plant performance in sandy soils and providing long-term carbon storage could make it a candidate for participation in emerging carbon-credit markets, while meeting practical needs tied to water efficiency and land rehabilitation.