Agripower lures investors as its silica fertiliser makes market gains

Sydney based fertiliser business Agripower has made headway in a number of key markets in Australia and the middle east as it moves to commercialise its high silica, dry and liquid fertiliser, Agrisilica.

Director Peter Prentice wrote to shareholders to tell them of progress in Middle East markets, tests that showed the product promoted carbon sequestration and an agreement with Incitec Pivot who have set up a silicon fertiliser division to market ‘Sitadel’ – the brand name of Agrisilica blended fertilizer for IPL.

Prentice said: “First deliveries under this agreement will commence September quarter 2022.

“Initially this will be an introduction during the balance of 2022 leading to more substantial growth in 2023.”

Silica is an abundant mineral but typically leached from soils, with Agrisilica containing a soluble form Si(OH)4, also known as Plant Available Silicon (PAS).

Prentice revealed the company’s progress with two international fertiliser companies:

• Agripower and SABIC Agri Nutrients fertiliser group have signed Heads of Agreement to develop a co-blending and co-branding operation to be based in Saudi Arabia. A joint venture will begin in the first quarter 2023 and supply the fertiliser markets in the GCC, Pakistan and India
• And the company has a HOA with Ma’Aden fertilisers – one of the top 5 fertiliser producers in the world – to co-blend Agrisilica with Ma’Aden fertilisers. Initial co-blending will commence in Africa and negotiations are underway to establish in the European Union.

Prentice said detailed negotiations were underway with a number of ESG investment funds with some of the funds having completed due diligence and submitted approved investment Offers to Agripower.

The company plans to finalise a suitable arrangement once business plans with SABIC Agri Nutrients and Ma’Aden are determined, as funding will be required for each of these joint ventures.

Prentice said the company’s trials to test increasing carbon sequestration and reducing greenhouse gas emission such as nitrous oxides and methane continued to provide ‘excellent results’.

“In respect of carbon sequestration recent trials conducted by Western Sydney University (WSU) on wheat have demonstrated by adding Agrisilica an additional five tonnes of carbon can be sequestered for every hectare.

“This is a massive sequestration of carbon.

“In respect of nitrous oxides which is the most deadly greenhouse gas of all, over 300 times more deadly than carbon oxide, Agrisilica is demonstrating it can reduce these emissions by over 40 percent. These increases in carbon sequestration and reduction in nitrous oxides are very significant.”

Picture: Agripower managing director Peter Prentice

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