Cleantech startup Nitricity announced today that it has raised $50 million in a Series B funding round, with proceeds aimed at scaling up its technology for the production of organic, low-emission nitrogen fertilizer.
Production and use of nitrogen fertilizers account for approximately 5% of global greenhouse gas (GHG) emissions, and also contributed to waterway toxicity and biodiversity loss, according to Nitricity.
Founded in 2018 by CEO Nicolas Pinkowski, President and CTO Joshua McEnaney and CSO Jay Schwalbe, Nitricity has developed organic nitrogen fertilizers, with its flagship product “Ash Tea” produced using air, water, renewable energy, and almond shells. According to the company, its organic fertilizer reduces emissions by 92% compared to conventional fertilizers. Nitricity noted that its Ash Tea product is cost-competitive with other commercially available organic fertilizers, while also offering a range of benefits including flowing smoothly through irrigation systems due to its liquid form, minimizing clogging and maintenance issues, and utilizing nitrogen more efficiently allowing for less product to be applied, as well as being pathogen-free and free from animal products.
The new financing comes ahead of Nitricity’s planned groundbreaking this month of its new organic fertilizer facility in Delhi, California, slated for operation in 2026, and marking a 100x increase in production capacity to achieve commercial scale volumes. The company said that the new plant’s full production capacity is already sold out through 2028 under binding offtake agreements with local organic growers.
The new capital will be used to scale Nitricity’s technology across the U.S. and into Europe, expand its team, and invest in R&D.
Dr. Nicolas Pinkowski, Nitricity co-founder and CEO, said:
“This is an inflection point for Nitricity. We’re scaling across the US and we’re very excited to expand into Europe in a serious and assertive way. The European market for our organic fertilizer is even larger than in the US, and demand is only growing against a backdrop of European governments looking to boost resilience and create circular agriculture economies.”
The financing round was led by European climate VC World Fund, and returning investor Khosla Ventures, with participation from Chipotle’s Cultivate Next venture fund, Change Forces, Susquehanna Sustainable Investments, EIP, and Fine Structure Ventures.
Dr Nadine Geiser, Principal at World Fund, said:
“Our calculations show Nitricity’s brilliant, price-competitive sustainable, organic alternative provides an <92% reduction in emissions on average. As the EU looks to meet sustainability and organic requirements, demand for Nitricity’s solution is only rising, and we are proud to be supporting Nicholas and the team as they scale into Europe and beyond.”
