Australian farmers to save 10% on fertiliser with new tech

A new technology introduced by the Sydney-based company PlasmaLeap Technologies could potentially reduce Australian farmers' fertiliser expenses by 10% annually.

In 2023, Australia's fertiliser usage amounted to approximately AUD $4 billion, with average annual spending per farmer approaching AUD $300,000. Implementing PlasmaLeap's technology could lead to savings of up to AUD $30,000 annually per farmer, equating to an overall potential saving of AUD $400 million each year across the nation.

PlasmaLeap's innovation represents a shift away from the traditional Haber-Bosch process. This method revolutionised fertiliser production in the early 1900s by relying heavily on fossil fuels, contributing significantly to CO2 emissions.

Professor PJ Cullen, Co-Founder and Chief Scientist at PlasmaLeap Technologies highlighted the limitations of the existing process: "The Haber-Bosch process has reached its limit. It's incredibly energy-efficient, but it achieves this by using cheap gas and releasing CO2 to get the hydrogen. It only works on a large scale, necessitating long-distance transportation."

PlasmaLeap's technology, in stark contrast, utilises renewable electricity, air, and water, achieving competitive production rates with the conventional method, specifically 20 kilowatt-hours per kilogram for green ammonia.

Professor Cullen explained, "We've reached a number that makes us competitive. Critically, the company recently achieved production rates of 20 kWh/kg for green ammonia and less than 10 kWH/kg nitrates. While the Haber-Bosch process is around 10 kWh/kg for ammonia, our technology eliminates transportation costs, making us economically viable."

The implications of this development extend beyond cost savings. Fertiliser pricing is a direct influencer of food prices, and current global events have resulted in stockpiling and a sharp increase in fertiliser costs. PlasmaLeap's technology could improve the stability of food supply through localised production.

The environmental perspective is equally important, as fertiliser production and delivery are major CO2 emission sources comparable to emissions from the aviation sector. PlasmaLeap offers a system that does not rely on CO2 emissions by using air, water, and electricity.

Professor Cullen emphasised the environmentally reimagined process, "We're not just tweaking the process; we're fundamentally reimagining it. The way it's currently done makes no sense. We take nitrogen and hydrogen— ingredients available everywhere— and concentrate production in a few countries like India, China, and Russia. Then we ship it globally, adding unnecessary CO2 emissions. Without feasible, commercially viable solutions for green Ammonia production, net zero can't be achieved."

The economic viability of PlasmaLeap's technology, facilitated by cutting transportation costs, utilising renewable resources, and benefiting from carbon credits, could lead to a 10% discount on fertiliser for farmers.

Graham Gall from Dawson River Pastoral Co highlighted the significance of such technology: "In Australia, almost all our nitrogen fertilisers are sourced from overseas, leaving us vulnerable to global supply chain disruptions and price fluctuations. PlasmaLeap's solution allows us to produce nitrogen on-farm using green energy sources, which is a game-changer. More importantly, it offers the entire agricultural industry a new level of self-reliance and sustainability."

Samantha Cullen, Co-founder and Chief Commercial Officer, noted the market interest, "Our innovative approach has already generated significant market interest, with USD $140 million in ARR potential pre-sales from the agricultural and energy sectors during our initial expression of interest campaign. The appetite for our technology is immense locally and globally."

Beyond agriculture, PlasmaLeap's technology presents new opportunities in sustainable hydrocarbon fuel production, encompassing methanol and jet fuel pathways.

Agricultural fertilisers currently comprise about 70% of the global ammonia market, valued at approximately USD $100 billion annually. This is expected to rise to USD $260 billion by 2050 due to its potential use in shipping and trucking as a clean fuel and as a stable hydrogen carrier in the global hydrogen transport economy.