Conversation with Justin Hughes of NetZeroNitrogen

Synthetic fertilizer is a $200B market, and has been critical for boosting crop yields, ensuring global food security. But production and field application of synthetic fertilizer causes about 2% of total greenhouse gas emissions. Many startups and innovators are trying to tackle this problem in different ways. NetZeroNitrogen is one of them; I spoke with their CEO Justin Hughes to get smarter.

FTW: “Justin, you’ve had a bit of an unorthodox background coming into the startup world — please tell us about that.”

JH: “I did 12 years as a fighter pilot in the Royal Air Force, taking part in deployments worldwide including UN peacekeeping missions. I consulted for a long time on building high-performance culture, did some time in the corporate world, became involved in a couple of startups, and was looking for a new challenge. In 2021, someone introduced me to Gary [Devine], our Chief Scientific Officer. I did my due diligence and realized that not only was I excited about what he was working on, but that the market for this was huge. In 2022 we were accepted into climate accelerator Undaunted (then called the Greenhouse Program), and we got a small grant from them. That’s when our company became real.”

FTW: “What problem did you set out to solve?”

JH: “The carbon footprint of synthetic fertilizer. 130 years ago, the German chemists Fritz Haber and Carl Bosch solved the problem of getting ammonia from fresh air. This enabled synthetic fertilizer, boosting crop yields, and solving the food security problem. The Haber-Bosch process directly or indirectly feeds 50% of the world’s population, but the manufacturing process requires 1% of the world’s energy consumption — and only 30% of synthetic fertilizer actually gets absorbed by the plants; the rest runs into watercourses, and eventually into the atmosphere as nitrous oxide. This means synthetic fertilizer is responsible for more than 2% of total greenhouse gas emissions. And it’s expensive, it’s a high input cost for farmers.”

FTW: “So how does NetZeroNitrogen address this?”

JH: “Lack of nitrogen is the #1 limiting factor for plants. Plants can’t normally access nitrogen in the atmosphere but our formulation facilitates that, instead of accessing it from the soil via, for example, synthetic fertilizer, as well as having a range of other benefits. This is cleaner in production and usage. And it’s cheaper — so there’s a green discount, instead of a green premium.”

FTW: “Can your solution replace all of synthetic fertilizer, or just some of it?”

JH: “Our aim is to replace 50% immediately, and long-term we want to replace 100% of synthetic fertilizer. Some scientists are sceptical whether a natural biological can do this.”

FTW: “How do farmers feel about this?”

JH: “When you talk to farmers about changing, they care about three things: Cost, yield, and environment. Farmers are custodians of the land, and understand the damage to soil created by synthetic fertilizer. But smaller farmers in Southeast Asia can’t currently afford to prioritize climate change.”

FTW: “Tell me more about this bacteria you’re using.”

JH: “This is a bacteria that has been in the food chain for a long time, and is peer reviewed in scientific literature. It’s not genetically modified. Also, using this bacteria isn’t exclusively about nitrogen fixation. The bacteria also supports other plant growth characteristics. We’ve worked with tens of bacteria strains, have generated thousands of data points, and we can optimize products for different crops and environmental conditions.”

FTW: “How is the bacteria applied to the plants?”

JH: “We apply the bacteria directly to the seed, immediately before the planting. Rice seeds, for example, are normally pre-soaked before planting, so then it’s easy to apply our bacteria to the seeds.”

FTW: “What does your go-to-market look like?”

JH: “We’re in the final product development phase, and expect to have a product ready for market in about two years’ time. We have a number of routes to market. In the UK, we could launch without any certification, as this is regarded as a very low risk product. In our most likely target markets — Southeast Asia, since we initially target rice — there are different levels of regulations. There’s no global standard on biofertilizers or biostimulants, but we have clear visibility on a pathway to market.

FTW: “How big of a market is this?”

JH: “Fertilizer is a $200B market. The nitrogen element of that is over $100B. The large chemical fertilizers corporations want to become more green. Several of them have venture arms so they’re investing in the future, and the corporates often innovate through acquisitions.”

FTW: “How many people work at NetZeroNitrogen, and what’s next for you?”

JH: “We’re 8 people in the company, and are looking to grow with another 4-5 people over the next year. In terms of what’s next, the key thing is to have a commercial product to market, including IP defensibility and regulatory approval. In the next phase, we’ll work with some innovation centers for fermentation. The key to fermentation is optimization.”

FTW: “How have you financed the business?”

JH: “We did a pre-seed round a few years ago, aiming for $1M but raising $1.7M so we were oversubscribed. We also got some grant money. The path to commercialization is long and expensive, so we will be raising again. In terms of ideal investors, the key metric is friendly, patient capital. Commercializing science is a long and unpredictable game.”

FTW: “What are your asks for anyone reading this?”

JH: “We’ll be looking for talent. We’ll want to bring on a CTO, some fermentation expertise, and also Country Manager for our first target market in Asia; a person with knowhow of rice agriculture, commercialization of science, and local networks, would be great.

FTW: “How can people get in touch with you?”

JH: “LinkedIn is fine, and I can also be reached via our website.”.