Making Distributed Nitrogen Fertilizer at the Point of Consumption

Nitrogen Fertilizer is a limiting plant nutrient. The high cost to transport limits use many areas. Making locally improves yield and income

Photo of Scott Dyer
5 3

Written by

I confirm that I am fully aware of the eligibility criteria, and based on its description, I am eligible to apply to the CSV Prize 2017.

  • Yes, I'm eligible

Preferred language

  • English

Organization name

BayoTech, Inc.

Year founded

2015

Initiative stage

  • Start-Up (a pilot that has just started operating)

Annual budget in 2017 (USD)

  • $500k - $1m

Number of beneficiaries impacted so far

  • 1 - 10

Organization type

  • Social enterprise

Secondary Focus Area

  • Water
  • Rural development
  • Nutrition

Headquarters location: Country

  • United States of America

Headquarters location: City

Fort Collins, Colorado and Albuquerque, New Mexico

Location(s) of impact

Initial impact: United States - market acceptance
Future impact: World Wide

Website

www.bayotech.us

Problem: What problem is this initiative trying to address?

Food production in developing countries limits yield and economic opportunity. Nitrogen fertilizer created the green revolution. BayoTech's patented solution is to deliver a nitrogen fertilizer plant in 3 40' shipping containers which can supply the nitrogen requirements for 15 MM bushels of corn. Allowing for increased food production income and greater time devoted to improving life. Lower fertilizer prices equals increased rural development.

Solution Summary: What is the proposed solution? What do you see as its most promising aspects for creating shared value?

BayoTech looked at the current process to make fertilizer and found the current process could not be scaled down to affect local production. The patented Nested-Flow Reactors allow for the cost of a plant to shrink for billions of dollars to $15 million. Distribution radius is 50 miles versus thousands for the centralized plant. Since the product is dense transport costs are high. Making the product at the point of consumption eliminates transport cost. Producing locally increases availability and lowers price. Capital that initially would go off shore is now available locally, allowing for increased economic development. Increasing food supply means greater income and less time spent on food production. BayoTech's urea can supply the nitrogen requirements of 15 million bushels of corn. The system is small and comes ready to operate. Requires natural or biogas, electricity and water.

Impact: What is the impact of the work to date? Specify both the social and the environmental impact of your work

The Nested Flow Reactors are 20% more efficient than current processes and reduces CO2 emissions by the same amount. This efficiency gain as well as shrinking the footprint has allowed BayoTech to raise $2,000,000 from venture groups. BayoTech is a graduate of The Yield Lab Accelerator located in St. Louis, MO. The acceptance of The Yield Lab validated the value of BayoTech's offering. The market for nitrogen fertilizer 160 million tons of ammonia. Urea makes up 58% of the world market. BayoTech's system produces 10,000 short tons per year. Manufacturing locally eliminates the cost of transportation allowing for better value to the consumer. In many parts of the world a ton of urea is $1000 versus $250 in USA. The difference is freight and cost of raw materials. BayoTech's objective is to minimize the impact of freight and increase availability of fertilizer. Biogas can be used.

Financial sustainability plan: How is this initiative financially supported? How will you ensure its financial sustainability long-term?

Venture capital: 100% at this time. BayoTech is currently seeking Round B funding, grants and technology development funding. Funding for commercialization of the fertilizer business will be partially funded by revenue generated by supplying Hydrogen to the vehicle fuel cell markets. Commercialization is expected in Q1 2019.

Unique value proposition: What makes your initiative innovative? How does your project differ from other organizations working in the same field?

BayoTech's patented Nested Flow Reactors changes the availability and cost of nitrogen fertilizer.

Founding story: Share a story about the "Aha!" moment that sparked the beginning of this initiative.

The "Aha" moment came when BayoTech's founders Scott Dyer and Justin Eisenach met with Milton Vernon to discuss how Nested Flow Reactors could be purposed to making urea. The Reactors had been proven at Sandia National Laboratories by Milton, but were not commercialized. Justin and Scott had previously been funded by Pepsi to lower the CO2 footprint of Tropicana Orange Juice. The solution was to make fertilizer from biogas, however, the fracking revolution reduced the value of natural gas. Current technology would not scale down to facilitate distributed production. BayoTech licensed the Nested Flow Reactors from Sandia and BayoTech was born. The compact size of the Nested Flow Reactors will revolutionize fertilizer availability.

Where did you hear about the Nestlé Creating Shared Value Prize?

  • Ashoka page or contact

Evaluation results

2 evaluations so far

1. Overall evaluation

5 - This idea rocked my world. It’s awesome! - 0%

4 - This idea seems really exciting. With a little more polishing, it’d be among my favorites. - 50%

3 - I think the idea is great, but it needs some work before it moves onto the next round. - 0%

2 - I liked it fine but preferred others. - 50%

1 - It didn’t make my heart beat faster. Needs significant revisions. - 0%

2. Innovation

5 - Absolutely, 100%! - 0%

4 - I feel really good about this - very promising - 50%

3 - This has some good elements and some areas for development - 50%

2 - This doesn’t inspire me so much - 0%

1 - This entry is weak here - 0%

3. Social and/or Environmental Impact

5 - Absolutely, 100%! - 0%

4 - I feel really good about this - very promising - 50%

3 - This has some good elements and some areas for development - 50%

2 - This doesn’t inspire me so much - 0%

1 - This entry is weak here - 0%

4. Financial sustainability

5 - Absolutely, 100%! - 0%

4 - I feel really good about this - very promising - 0%

3 - This has some good elements and some areas for development - 100%

2 - This doesn’t inspire me so much - 0%

1 - This entry is weak here - 0%

Nothing stands out! I thought it was great. - 0%

5. Potential to Scale / Replicability

5 - Absolutely, 100%! - 0%

4 - I feel really good about this - very promising - 0%

3 - This has some good elements and some areas for development - 100%

2 - This doesn’t inspire me so much - 0%

1 - This entry is weak here - 0%

6. Organizational Leadership

5 - Absolutely, 100%! - 0%

4 - I feel really good about this - very promising - 50%

3 - This has some good elements and some areas for development - 50%

2 - This doesn’t inspire me so much - 0%

1 - This entry is weak here - 0%

7. Potential for Creating Shared Value

5 - Absolutely, 100%! - 0%

4 - I feel really good about this - very promising - 50%

3 - This has some good elements and some areas for development - 50%

2 - This doesn’t inspire me so much - 0%

1 - This entry is weak here - 0%

5 comments

Join the conversation:

Comment
Photo of Mouhamadou Moustapha Seck

Interesting.

Photo of Scott Dyer

BayoTech's has the ability to place a nitrogen fertilizer plant wherever there is natural gas and electricity and demand for fertilizer. The cost to transport a dense and low value product is therefore minimized.

Photo of Mouhamadou Moustapha Seck

Thank you Scott for the precision. Go ahead. Best regards.

View all comments