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Hi, I’m Javi Gascón.
This is Climate Tech Distillery, a newsletter where I talk about one specific climate tech company every week.
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Today we’ll distill a company that’s harnessing microbes to replace synthetic fertilizers and boost soil health: Kula Bio 🇺🇸
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What Problem Does Kula Bio Tackle❓
They fight the environmental and economic impacts associated with traditional synthetic nitrogen fertilizers:
1. Environmental Impact: Synthetic nitrogen fertilizers account for over 5% of the world's greenhouse gases each year. They also lead to nitrogen runoff, which pollutes waterways.
2. Resource Intensity: The production of synthetic nitrogen fertilizers uses about 5% of the world's natural gas.
3. Unreliability of Biological Alternatives: Traditional biological nitrogen-fixing microbes are often unreliable and cannot survive in various soil types and environmental conditions, making them less effective as alternatives.
4. Economic Pressure: Rising natural gas prices and production disruptions have driven fertilizer prices to record highs, affecting farmers' costs.
Learn more about the issues with fertilizers in simple terms here.
Product / Service 📦
Kula Bio's product is a biofertilizer (Kula-N) that uses supercharged natural microbes, specifically Xanthobacter, to convert atmospheric nitrogen into plant-available fertilizer. Why this tech is awesome:
Efficient Nitrogen Delivery: The microbes produce nitrogen at the root zone, maximizing usage and reducing the need for synthetic fertilizers.
Sustainability: The process reduces environmental impacts by minimizing the carbon footprint associated with traditional fertilizer production and application.
Cost-Effectiveness: Their biofertilizer is cost-competitive with traditional options while providing better environmental safety.
Consistency and Durability: The supercharged microbes store energy and release nitrogen over several weeks, ensuring consistent field performance across various crops and soil conditions.
Overall, Kula Bio's biofertilizers enhance crop yields, support sustainable farming practices, and offer a more environmentally friendly alternative to conventional fertilizers. 🌱
Market 🌐
The biofertilizer market growth is driven by increasing regulatory pressures, consumer demand for sustainable products, and the need for farmers to adapt to climate change.
Such market was valued at approximately $2.5 billion in 2020 and is projected to grow at a CAGR of around 12% to reach $6.5 billion by 2027.
Other Key Players
Pivot Bio🇺🇸: Develops microbial solutions for nitrogen fixation, reducing the need for synthetic fertilizers and promoting sustainable agriculture practices.
Ginkgo Bioworks🇺🇸: Uses synthetic biology to create microbes for various applications, including agriculture, aiming to improve crop yields and reduce environmental impact.
Indigo Ag🇺🇸: Focuses on microbial and digital technologies to enhance crop health and reduce the environmental footprint of farming.
Founding Story 🦄
Kula Bio was founded in 2018 by Bill Brady and Kelsey Sakimoto. The company originated from innovations developed at Harvard University, where Sakimoto, a former Harvard University Center for the Environment Fellow, conducted research on microbial nitrogen fixation. Bill Brady, with his extensive background in industrial biotechnology and cleantech, including roles at Cabot Corporation and as co-founder of Monolith Materials, joined Sakimoto to commercialize this technology.
Their mission was to develop a cost-effective, sustainable, and biological nitrogen fertilizer to replace synthetic fertilizers, which are significant contributors to greenhouse gas emissions and environmental pollution. The company's product, Kula-N, was the solution.
Kula Bio has since secured significant funding, including a $50 million Series A round in 2022, to scale its operations and further develop its technology.
Top Impact Stats 📈
Kula Bio's microbial fertilizer can replace 50 to 100% of conventional nitrogen fertilizer while reaching the same yields as conventional treatments!
Kula-N produces 84% less greenhouse gas emissions per kg of product compared to conventional nitrogen fertilizer during manufacturing, transportation, and storage.
Kula Bio's technology is crop agnostic, meaning it can be used on various types of crops.
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