Phospholutions Raises $10.15M to Reduce Phosphorus Carbon Emission by 50%
August 9, 2023 Phospholutions Inc., a pioneer in sustainable fertilizer technology, has announced an additional $10.15M investment from leading global fertilizer companies and investors to accelerate the commercialization of RhizoSorb in the U.S. row crop market. The financing was led by Advantage Capital and includes continued investment from Conti Ventures (a division of Continental Grain Company), Tekfen Ventures, Maumee Ventures, and Ben Franklin Technology Partners. Keytrade, a global fertilizer trader, also joins as a new investor.
“We are pleased to welcome new investors like Advantage and Keytrade supporting our efforts to accelerate commercialization of our phosphate efficiency technology. Additionally, the continued support from our existing investors really fortifies what we are doing to bring new sustainable fertilizers to the U.S. farmer,” says Jason Burke, Vice President of Finance at Phospholutions.
Fertilizers are critical to ensuring we can feed the world and yet substantial greenhouse gas emissions stem from their manufacturing, utilization, and losses, which contribute significantly to agriculture’s carbon footprint. Conventional phosphorus fertilizers exhibit low efficiency, with as little as 10% being utilized by the crop during the year of application. Inefficient fertilizer use causes excess nutrients, such as phosphorus, to end up in our water resources, causing Harmful Algae Blooms (HAB’s) and contributing to water quality degradation affecting more than 70% of the Earth’s freshwater. A growing and compounding challenge, emissions associated with eutrophication are projected to be equivalent to 50% to 75% of today’s total vehicle-related emissions.
RhizoSorb is the only patented technology incorporated upstream into the production process for conventional phosphates that reliably reduces phosphorus applications by up to 50%, maintaining yield and improving retail margins while providing a cost savings benefit to the farmer. RhizoSorb is proven to deliver the same amount of phosphorus to the plant with half the amount of applied fertilizer. The company launched RhizoSorb 8-39-0 in the U.S. row crop market this past spring and has added 3 new Regional Managers and a Director of Agronomy to support sales to ag retailers in North America.
Phospholutions’ technology has been proven to reduce the environmental impact of phosphate fertilizer by reducing runoff potential by 58%, leaching by 87%, and greenhouse gas emissions associated with conventional use of traditional monoammonium phosphate sources by more than half. Phosphate manufacturers also see a reduction in production costs and an increase in margin that outweighs the reduction in applied volume per acre compared to conventional phosphate sources.
“We are thrilled to engage in the advancement of the fertilizer industry and to invest in a company dedicated to shaping the future of phosphorus. This pioneering solution offers producers an opportunity to embrace sustainable technology and enhance conventional fertilizer production while also extending the value to the farmer, creating a more environmentally friendly and economically viable approach,” says Melih Keyman, President and CEO of Keytrade Ag.
Phospholutions was recently awarded 1st place in the International Fertilizer Association’s African Agtech Startup Showcase hosted in partnership by Mohammed VI Polytechnic University (UM6P). The competition was aimed at Agtech startups working on innovative solutions that can be adapted to the African context to ensure the sustainability and inclusivity of its agriculture. This prize further validates both the need for more sustainable fertilizer technologies globally and Phospholutions commitment to improving food security through more efficient use of fertilizer.
RhizoSorb has been proven to benefit farmers in five countries outside the U.S. including India, New Zealand, and Turkey. The company will be expanding field trials into China, Brazil, and Canada during the 2024 growing season.
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