AgraME News
Phospholutions Set for Commercial Roll-out Through Partnership With Turkey’s Toros Agri
Phospholutions Inc. has started commercial production volumes of its RhizoSorb product through a partnership with Turkish fertilizer producer Toros Agri.
With three production centres in Turkey, Toros Agri has a total production capacity of ammoniated phosphates MAP/DAP and NPKs of around 1.5 million tonnes, as well as production of organomineral fertilizer. In April, Phospholutions produced commercial volumes from Toros’s production site at Samsun, Turkey, and shipped the tonnes to the U.S. market.
The technology behind RhizoSorb
RhizoSorb is a dry granular phosphorus fertilizer developed to enhance phosphorus efficiency in soils. Unlike conventional phosphorus fertilizers, which rely heavily on environmental conditions for nutrient availability, RhizoSorb employs a novel plant-driven nutrient release mechanism. This mechanism utilizes a chemical gradient rather than environmental factors, ensuring that phosphorus is released more predictably and efficiently.
The technology is integrated directly into the granulation process of phosphorus fertilizers, particularly those derived from monoammonium phosphate (MAP). This means that RhizoSorb is not a coating but an integral part of the fertilizer granule itself. The key innovation lies in its ability to bind phosphate and control its release, preventing it from becoming locked up in the soil. This allows for a reduction in the volume of applied phosphorus – up to 50 percent less – while maintaining or even enhancing crop yields, according to Phospholutions.
The product’s formulation, characterized by a reddish-brown hue and a nutrient analysis of 8-39-0, ensures that it is harder than standard MAP granules and has a lower salt index. This makes it less harsh on early seedlings and easier to handle and store.
Business strategy and partnership with Toros Agri
Phospholutions’ strategic shift towards upstream solutions marks a significant milestone in its journey. Rather than positioning itself as a downstream product that is blended with existing fertilizers, Phospholutions has chosen to integrate its technology directly into the production of phosphate fertilizers. This upstream approach enables Phospholutions, which was founded in 2016 as a spin-out from Penn State university, to offer its technology at scale.
The company’s first partner is Toros Agri, whose parent company Tekfen Ventures was an investor in Phospholution’s Series A round in 2019.
This funding, including the involvement of Toros Agri, provided the necessary resources to scale up production and commercialize RhizoSorb.
In January 2024, Phospholutions and Toros Agri completed a successful pilot production run at Toros Agri’s Samsun production site on the Black Sea producing a few thousand tonnes of RhizoSorb. This was scaled up to commercial levels in April.
Hunter Swisher, Phospholutions CEO
“We actually produced more than expected,” noted Hunter Swisher, Phospholutions CEO, in an interview with New AG International.
The subsequent full-scale production run in April 2024 surpassed expectations, leading to significant volumes being shipped from Turkey to the U.S. and other global markets.
Today, the finished product is shipped to New Orleans, and then moved upriver to distribution warehouses throughout the U.S. Midwest. Some of the product will be sold as barges and priced against MAP coming into New Orleans.
“The product will be sold at a premium to MAP,” explained Swisher. “So more expensive per tonne, but cheaper per acre given the lower volume.”
The collaboration has enabled Phospholutions to leverage Toros Agri’s expertise in integrating new technologies into existing fertilizer manufacturing processes. This partnership is not only the first major production collaboration for Phospholutions, but also a key component of its strategy to embed its technology into MAP/DAP production plants worldwide.
“We are fully commercial and able to satisfy significant volumes in U.S. and global markets, and we are expanding our partnerships globally,” noted Swisher.
The partnership included over 200 trials in the U.S., focusing primarily on corn, soy, wheat and canola. “We’ve started to branch a little bit into potatoes and a few other crops as well, [and] we have a keen focus on rice and sugar cane,” said Swisher. “Really, any of the major row crops where a high use rate of phosphates is being used is, I think, the best market opportunity for us.”
Brian Reineke, Phospholutions’ director of agronomy visiting trial fields in Bremen, Indiana.
The company has also conducted trials in Europe, in India and in northern Africa, “and we’re starting trials in Mexico all the way down to Argentina. There’s been quite a few pushes into the international markets; we do view this as a global opportunity for us.
“Our technology is really impacting the chemistry of the granule and the release mechanism,” added Swisher. “So there tends to be a lot less variability across conditions than, say, some of the other products, especially on the biological front.”
Market and environmental impact
RhizoSorb has already demonstrated its environmental benefits through a life cycle analysis, which revealed a 45.2 percent reduction in carbon emissions compared to MAP fertilizers, even when shipping from Turkey to the U.S. This reduction is attributed to both the decreased volume of phosphorus applied per acre and the lower carbon intensity of RhizoSorb’s raw material, which is a mined product. Additionally, the technology’s controlled-release mechanism significantly reduces the potential for phosphorus runoff, contributing to a 78 percent reduction in runoff potential.
There’s no coating, so Swisher does not expect any problems from a regulatory point of view for selling the product in EU markets.
The strategic partnership with WeGrow, a specialty arm of Keytrade, further amplifies Phospholutions’ market reach. WeGrow’s role in market development, field trials and distribution is crucial for expanding RhizoSorb’s presence in international markets, including Mexico, Argentina and beyond.
Phospholutions’ business model includes two pricing strategies: a premium price per tonne of RhizoSorb compared to MAP, and a more economical price per acre due to the reduced volume required. This dual pricing approach offers advantages to both retailers and growers, providing higher margins for distributors and cost savings for farmers. Swisher noted that for retailers, the reduced volumes required by farmers frees up bin space for other products.
Future outlook
Phospholutions and Toros Agri are enthusiastic about the future of their partnership and the potential for further scaling RhizoSorb production. The companies are in the second year of product performance trials in Turkey, focusing on crops such as corn and wheat.
As they continue to refine their production capabilities and expand their global partnerships, Phospholutions aims to establish RhizoSorb as a leading solution in sustainable phosphorus fertilizer technology.
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