Terra CO2 and Eagle Materials Announce Exclusive Agreements to Produce Low-Carbon Cementitious Material in High-Demand Markets, Including the Greater Denver Market

Rhea-AI Summary

Terra CO2 and Eagle Materials Inc. (NYSE: EXP) have entered into exclusive agreements for the potential deployment of multiple eco-friendly, low-carbon cementitious commercial-scale plants across three different geographic areas, including the Greater Denver market. Each plant would have the potential to produce approximately 240,000 tons per year of supplementary cementitious material (SCM). The agreements aim to support environmental goals and initiatives, such as the Buy Clean Colorado Act, and address the critical challenge of reducing the carbon intensity of cementitious materials using new technologies. Terra's OPUS SCM is a 1:1 replacement of traditional SCMs that does not require additional infrastructure or cement design investments, creating a win-win for both the environment and the economy.

Positive

• Exclusive agreements for potential deployment of multiple eco-friendly, low-carbon cementitious commercial-scale plants
• Agreements aim to support environmental goals and initiatives, such as the Buy Clean Colorado Act
• Terra's OPUS SCM is a 1:1 replacement of traditional SCMs that does not require additional infrastructure or cement design investments

Negative

• None.

The exclusive agreement includes the potential deployment of multiple commercial-scale plants across three different geographic areas

GOLDEN, Colo. & DALLAS--(BUSINESS WIRE)-- Terra CO2, the developer of a scalable low-carbon supplementary cementitious material, and Eagle Materials Inc. (NYSE: EXP), announced today that they have entered into exclusive agreements for the potential deployment of multiple eco-friendly, low-carbon cementitious commercial-scale plants that would service three different geographic areas, including the Greater Denver market.

The agreements grant Eagle Materials the exclusive right to build and operate plants that produce supplementary cementitious material (SCM) in each geographic area. When developed and fully scaled, each plant would have the potential to produce approximately 240,000 tons per year of SCM.

These agreements represent an important step towards helping states and the construction industry further their environmental goals and initiatives. For example, a plant built in the Greater Denver market area would support the Buy Clean Colorado Act (HB21-1303), signed into law and effective January 1, 2024, which aims to reduce embodied carbon emissions in construction materials for Colorado state public projects exceeding $500,000. This law underscores Colorado's commitment to leading in the mandate of low-carbon construction materials, and Terra's technology is poised to play a crucial role in achieving the state's environmental objectives.

“New climate tech needs to be deployed quickly to meet 2030 and 2050 climate goals. Terra is working hard to accelerate the deployment of its commercial plants through strategic partnerships, deploying more capital and shortening timelines," said Bill Yearsley, Terra's CEO.

"We are thrilled to work with a partner like Eagle Materials to build commercial plants for sustainable construction, and act on this urgency through our shared commitment to action. In the absence of a 'climate tech express lane' from the government, working with industry leaders is key to innovating and expediting low-carbon solutions for the industry."

As the industry seeks to address climate change and environmental sustainability, the emission rates of traditional cement production present a critical challenge that necessitates innovative solutions.

"In entering into these agreements with Terra, we're taking bold steps today to seek solutions that reduce the carbon intensity of cementitious materials using new technologies. Furthermore, as the supply of other SCMs, such as fly ash, continues to decrease in availability, increased SCM development will be crucial to fulfill the needs of our customers and in meeting the expected increases in demand for cement more broadly,” said Michael Haack, CEO of Eagle Materials.

Terra's OPUS SCM is a 1:1 replacement of traditional SCMs that does not require any additional infrastructure or cement design investments, creating a win-win for both the environment and the economy. Terra’s core technology is a production process that converts inexpensive, abundant, and local feedstocks from existing aggregate mines to high-performing, climate-friendly, and cost-competitive SCMs. Unlike existing SCMs, OPUS products are precisely engineered and can be manufactured locally in large quantities, minimizing transportation costs, and allowing reliable supply with strict quality control.

Terra’s OPUS SCM has been successfully used in the construction of the Porsche Sugar Land dealership in Texas and the Minnesota Road Research Facility (MnROAD) on Interstate 94. Terra also recently announced plans for a plant in Dallas-Fort Worth in partnership with Asher Materials.

ABOUT EAGLE MATERIALS

Eagle Materials Inc. (NYSE: EXP) is a leading U.S. manufacturer of heavy construction products and light building materials. Eagle’s primary products, Portland Cement and Gypsum Wallboard, are essential for building, expanding and repairing roads and highways and for building and renovating residential, commercial and industrial structures across America. Eagle manufactures and sells its products through a network of more than 70 facilities spanning 21 states and is headquartered in Dallas, Texas. Visit eaglematerials.com for more information.

ABOUT TERRA CO2

Terra CO2 is the scalable low carbon alternative for cement production. Responsible for 8% of the world's CO2 emissions, cement is used in producing concrete, the world's second-most used material after water. Their unique technology allows Terra to create cementitious materials from a wide variety of feedstocks or waste products, dramatically reducing the greenhouse gas emissions caused by cement production. Terra's proprietary Opus suite of cementitious materials is a proven supplement and alternative to Portland cement. Validated by third parties, Terra's materials perform equal to or better than traditional cementitious products.

Terra CO2 is headquartered in Golden, Colorado. For more information, please visit: https://terraco2.com/

View source version on businesswire.com: https://www.businesswire.com/news/home/20231205611533/en/

Terra CO2 Technology

Juan Ávila

JDI, Media Contact

juan@jones-dilworth.com

Eagle Materials Inc.

Contact at 214/432-2000

Michael R. Haack

President and Chief Executive Officer

D. Craig Kesler

Executive Vice President & CFO

Alex Haddock

Vice President, Investor Relations

Source: Terra CO2

FAQ

What is the exclusive agreement between Terra CO2 and Eagle Materials Inc. (NYSE: EXP)?

The exclusive agreement involves the potential deployment of multiple eco-friendly, low-carbon cementitious commercial-scale plants across three different geographic areas, including the Greater Denver market.

What is the potential production capacity of each plant under the agreements?

Each plant would have the potential to produce approximately 240,000 tons per year of supplementary cementitious material (SCM).

How does Terra's technology contribute to environmental objectives?

Terra's OPUS SCM is a 1:1 replacement of traditional SCMs that does not require additional infrastructure or cement design investments, creating a win-win for both the environment and the economy.

What law does the plant in the Greater Denver market area aim to support?

The plant aims to support the Buy Clean Colorado Act (HB21-1303), signed into law and effective January 1, 2024, which aims to reduce embodied carbon emissions in construction materials for Colorado state public projects exceeding $500,000.

What industry challenge does the agreement aim to address?

The agreements aim to address the critical challenge of reducing the carbon intensity of cementitious materials using new technologies.