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
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.
Start-Up (a pilot that has just started operating)
Annual budget in 2017 (USD)
Number of beneficiaries impacted so far
Secondary Focus Area
Headquarters location: Country
Headquarters location: City
Fort Collins, Colorado and Albuquerque, New Mexico
Location(s) of impact
Initial impact: United States - market acceptance
Future impact: World Wide
The need for Fertilizer supports small holder farmers economic development. Many small holder farmers are in need of fertilizer to improve yield. I have never seen any individual who did not want to improve the life of their children. Fertilizer is one of the answers to increased food security.
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.
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