Bion Environmental Technologies Inc. (BNET:OTCQB) has secured a new offtake Letter of Interest (LOI) for 100,000 gallons of its innovative organic and low-carbon nitrogen fertilizer. This commitment is for Bion’s OMRI Listed 10-0-0 Liquid AB (Ammonium Bicarbonate) nitrogen fertilizer, a product derived from ammonia released during biogas production. This fertilizer represents a new class of readily available organic nitrogen solutions that address the organic “yield gap” due to traditionally less available nitrogen and help reduce carbon footprints.
The LOI was signed with a prominent integrated U.S. agribusiness entity, which has chosen to remain anonymous. The agreed pricing is set at $7 per pound of nitrogen. The 10-0-0 Liquid AB contains 10% nitrogen by weight, meaning the 100,000 gallons will include approximately 84,000 pounds of nitrogen. This is the third LOI brokered through Philo Consulting, following earlier agreements with Perfect Blend and Yield RMG, bringing the total to 250,000 gallons. Bion anticipates additional commitments from distributors and growers soon, aiming for an initial target of 300,000-500,000 gallons for delivery in 2026.
Bion’s patented Ammonia Recovery System (ARS) produces organic and low-carbon nitrogen fertilizers from ammonia generated from animal manure, industrial, and other organic waste streams in biogas production. This system prevents environmental pollution by capturing ammonia and generates clean water for reuse or discharge, enhancing both the economic and environmental sustainability of livestock and biogas operations.
In June, Bion announced it had successfully completed a technology optimization report for the enhanced ARS, which demonstrated stability, reliable continuous operation, and scalability. It also achieved ammonia reduction goals by evaporating significantly less water than initially projected, leading to improved economic outcomes, including lower production costs for its high-quality nitrogen fertilizers.
The organic food sector has been identified as the fastest-growing area of U.S. agriculture by the U.S. Department of Agriculture. It faces the “organic yield gap” due to a lack of affordable, readily available organic nitrogen. Bion’s ARS addresses this by capturing and upcycling ammonia from livestock waste, which is then converted into low-carbon, organic nitrogen fertilizers. This not only enhances crop yields but also reduces the carbon footprint associated with organic farming.
The market size for organic fertilizers was valued at $7.9 billion in 2024 and is expected to grow at a compound annual growth rate (CAGR) of 11.5% through 2029, reaching $13.6 billion. The rising preference for environmentally conscious food fuels the growth of the organic fertilizers industry. Governments globally are enacting regulations and incentives to foster organic farming, thereby boosting the demand for organic fertilizers.
The global market for biogas is anticipated to grow by $19.51 billion from 2024 to 2028, with a CAGR of 6.01%. Europe leads in adopting technology to manage organic wastes, but America is beginning to catch up. In 2024, 125 new biogas projects came online in the U.S., representing over $3 billion in new investments.
Bion’s technology not only supports organic agriculture but also significantly reduces nitrogen runoff and off-gassing, helping to protect surface waters, aquifers, and the atmosphere. It also aids in restoring soil microbial balance and narrowing the yield gap between organic and conventional crops. As the ARS scales to full commercial size, Bion anticipates further economic improvements and plans to explore additional modifications to the ARS that could dramatically reduce system capital costs and operating expenses.
The implications of Bion’s advancements are significant. By providing a sustainable and economically viable solution to the organic yield gap, Bion is positioning itself as a key player in the growing organic fertilizer market. Moreover, its technology addresses critical environmental concerns, making it a valuable contributor to sustainable agriculture and environmental protection efforts.