Chipotle Mexican Grill and Khosla Ventures are among the investors who fund the emerging funds that make fertilizer from ground almond shells.
Founded by Stanford University alumni, Nitrogen announced Tuesday it had raised $50 million to expand its organic and vegan fertilizer production and expand its US and Europe. The company is targeting organic farmers amid growing concern over the environmental and health effects of pesticides, a movement boosted by Health and Human Services Secretary Robert F. Kennedy Jr.
“Our goal is to reduce emissions, promote healthy soil and help farmers improve harvests,” said Nicholas Pinkowski, the company’s co-founder and CEO. “Currently, there are many concerns in the US about food and chemicals. We are interested in not only getting daily calories, but also ensuring that what we eat is healthy and safe.”
Traditional synthetic fertilizers are based on a century ago process that relies heavily on fossil fuels. Fertilizer production accounts for approximately 5% of the world’s greenhouse gas emissions. Farmers applying them excessively in their fields can cause runoff containing nitrogen that contaminates water and air.
Nitrate uses almond shells rich in nutrients such as potassium. The company first burns shells, then “brew” with water, creating something called ash tea. Products are made using clean energy, and production costs vary depending on the electricity price. Overall, the nitrogen says its emissions are at least 92% lower than that of other traditional fertilizers.
The liquid is sent to the farmers, who dilute it and apply it to the soil. The company is trying to compete with fertilizer-derived fertilizers, which raises the risk of food safety, Pinkowski said. Production costs are competitive with commercial organic fertilizers, but the company did not share price details. Nitrogen says Ashtea has increased by up to 30% on field trials.
Almond shells are rich in California, the world’s top grower and nitric acid-based. The state generates an estimated 850,000 tonnes of almond waste per year.
Other startups are also trying to create low-carbon fertilizers. They include Toopi Organics and NPK Recovery, which makes fertilizers from other companies that use human urine and insects and seaweed.
The Nitrogen Series B Round, co-led by Khosla and the European Climate-Tech Venture Firm World Fund, brings total funding to $100 million. (This is the first investment in the US by the World Fund) Bloombergnef estimates that it exceeded the total funds that entered an alternative fertilizer startup until June. Other funders include the power of change.
Venture funds for sustainable food production have been falling sharply since 2021 as companies struggle to cut costs. Non-traditional fertilizers also account for less than 2% of the US market due to relatively low intake, according to a Bloomberg Intelligence study.
With new funding, nitric acid can start field trials across Europe. There, local agricultural waste such as wood and leftovers from the output of olive oil will be used. This week it is breaking into a new factory in Delhi, California. It plans to produce 8,000 tonnes of short liquid fertilizer each year.
De Souza wrote in Bloomberg.
