US-based startup Phospholutions has achieved a significant milestone in its quest to enhance the efficiency of phosphate fertilizers, announcing the commercial-scale production of its RhizoSorb additive. This development comes through a strategic partnership with Turkish fertilizer giant Toros Agri, marking what Phospholutions describes as “a significant leap toward offering a sustainable alternative for the world’s second most essential nutrient for global food production.”
Phosphate fertilizers are indispensable for crop yields but notoriously inefficient. On average, crops absorb only about 10% of the phosphate applied, with the remainder often contaminating waterways. This inefficiency forces farmers to over-apply phosphate fertilizers, leading to economic burdens and environmental concerns. Phospholutions, founded in 2016, aims to tackle this problem with RhizoSorb, a dry granular phosphorus fertilizer that promises a 50% increase in phosphorus uptake efficiency throughout the growing season.
The collaboration with Toros Agri follows Phospholutions’ successful Series A funding round, which saw participation from Tekfen Ventures, the corporate venture arm of Toros Agri’s parent company, Tekfen Holding. The initial pilot phase of this partnership saw RhizoSorb produced at a commercial scale for the first time at a plant typically dedicated to commodity phosphates. According to Phospholutions founder and CEO Hunter Swisher, the pilot exceeded expectations, producing four times the intended amount of product and selling out quickly, necessitating a second, much larger production run.
“We essentially went from close to zero last year in terms of product sales to having a fully integrated producer that can support a substantial volume,” Swisher told AgFunderNews. This success allows Phospholutions to demonstrate that RhizoSorb can be integrated into production processes and highlights the company’s unique business model. Unlike other phosphorus efficiency products that are incorporated downstream, Phospholutions integrates RhizoSorb upstream, enabling manufacturers to capture value by enhancing the efficacy of their commodities.
Currently, RhizoSorb is being imported into the US and sold by agricultural retailers in the Midwest. With Toros Agri being a prominent player in Turkey, the partnership also extends to Eastern Europe, where performance trials on corn and wheat are in their second year. “Toros is the largest fertilizer manufacturer in Turkey and has a strong brand in the surrounding countries,” Swisher noted. The collaboration aims to establish a long-term manufacturing and distribution presence in Eastern Europe.
Looking ahead, Phospholutions plans to scale up operations in the US and conduct additional trials with partners. The company has also formed a partnership with Keytrade Ag, one of the world’s largest fertilizer brokers, and launched a collaboration with crop nutrition solutions provider WeGrow AG to commercialize RhizoSorb across the Americas.
Despite the challenging capital environment many agtech startups face, Swisher remains optimistic about future fundraising. “We’re a pretty capital-light business based on our model,” he said. “We don’t need a big sales force. We don’t make our stuff, and we don’t really want to sell it, either. We leverage partnerships to get this technology at scale.” He added that the company has considerable momentum, having exceeded investor expectations and making significant progress.
Phospholutions appears well-positioned to navigate the current market conditions, aiming to raise just enough capital to maintain growth without compromising the traction gained thus far. As the company gears up for broader commercialization, its innovative approach to phosphorus efficiency could have far-reaching implications for both farmers and the environment.