Environmental Co. Report Uncovers Fertilizer Technology Breakthrough

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Advanced organic waste treatment and resource recovery company Bion Environmental Technologies Inc. (BNET:OTCQB) announced it has completed the technology-optimization report for its Ammonia Recover System (ARS) at Fair Oaks Indiana.

The optimized ARS proved it remains stable and can sustain continuous steady-state functions; it operates reliably; and is scalable. The ARS also displayed its capability to reach ammonia reduction objectives by evaporating one-third less water than was projected and modeled. This results in substantially improved economics, including reduced production costs for the premium nitrogen fertilizers the ammonia is upcycled into.

"As we have indicated for some time, the ARS has exceeded our expectations. This report details by just how much," said Chief Executive Officer Craig Scott. "We are now sorting through and evaluating dozens of potential projects and partners to find the best fit to fill our initial fertilizer offtake agreements. Our goal is to identify a project (or projects) that will allow us to supply our unique organic nitrogen fertilizer to growers during the 2026 growing season."

The report outlines over a decade of ARS concept advancement and technology R&D, emphasizing what was accomplished during the optimization phase at Fair Oaks. Bion enlisted Buflovak, a New York engineering company, as its ARS development collaborator, due to their specialized expertise in evaporation, distillation, and separation processes. The Buflovak engineering team participated closely during six years of ARS R&D and testing, including offering guidance during the 18-month optimization phase at Fair Oaks, and a final review of the report. The Buflovak engineering team remains available to discuss the report and its findings.

Economics were not assessed during optimization, but Bion noted in a release that the considerable operational improvements that were achieved, during that phase, directly impact modeled system economics and fertilizer manufacturing expenses.

The Fair Oaks findings indicate operating expenses for a full-scale commercial system will be approximately 25% lower than previously modeled, with a corresponding reduction in fertilizer manufacturing costs. Modeled capital expense, either overall or as a function of fertilizer or treatment capacity, will decrease substantially, as well.

The Most Rapidly Expanding Area of US Agriculture

The organic food sector represents the most rapidly expanding area of U.S. agriculture, based on the U.S. Department of Agriculture. Nevertheless, something commonly referred to as the "organic yield gap" can reduce the productivity of these operations.

An absence of an affordable, organic (but readily-available) nitrogen, similar to the synthetic nitrogen fertilizer utilized in traditional farming, constitutes a major factor why organic agriculture generates fewer pounds per acre. Organic growers can’t afford the organic nitrogen that gives that additional "boost" of late-season development and growth that traditional crops get — that's why organic fruit and produce tends to be smaller, the company stated. It also results in a greater carbon footprint per pound for organic foods.

Bion's ARS handles and treats livestock waste flows in order to isolate and capture the ammonia (organic nitrogen) that is also released during biogas production in an anaerobic digester. The ARS is the foundation of the company's Gen3Tech technology, which generates renewable energy, nutrients, and clean water from livestock waste flows. Instead of that ammonia being lost and polluting the environment, the ARS repurposes it into low-carbon and organic nitrogen fertilizers. By using only the compounds in the waste stream itself, the nitrogen remains organic, giving organic growers the late-season nitrogen they need to enhance yields.

Last summer, Bion revealed its "pure" commercial nitrogen fertilizer, manufactured from livestock waste, was OMRI-listed for use in organic production. Bion's ammonium bicarbonate fertilizer constitutes a partially-stabilized source of nitrogen, upcycled from reactive ammonia in organic waste streams through a patented process. OMRI operates as an international nonprofit organization that lists products permitted for use in organic production under the USDA's National Organic Program.

Protecting Surface Waters, Aquifers, the Atmosphere

Bion stated its methodology will diminish the carbon footprint linked with organic systems and "significantly reduce nitrogen runoff and off-gassing to protect surface waters, aquifers, and the atmosphere. It can quickly bring soil microbes in organic systems back to a healthy and productive balance and reduce the yield gap of organic crops as compared to conventional."

An organic fertilizer, manure is conventionally administered to farmland before planting occurs. The volatile ammonia-nitrogen it holds — approximately 75% of the fertilizer's nitrogen/nutrient value — typically escapes to pollute the environment. However, Bion stated its patented ARS technology focuses on this volatile and highly mobile ammonia nitrogen, stabilizes it with carbon dioxide also in the waste flow, and transforms it into ammonium bicarbonate, a 100% soluble nitrogen fertilizer that can be easily absorbed by plants and administered to organic crops.

"It is pathogen-free," the company stated. "So, unlike manure, it can be applied at any time in the plant growth cycle."

Bion stated it anticipates further economic improvements as the ARS is expanded to full commercial scale. "While engineering challenges are expected, Bion believes those risks are substantially mitigated because the ARS platform and the processes it uses perform better at larger scale," it stated. Bion also said, "Over the next several months, we intend to evaluate additional modifications to the ARS we believe could dramatically reduce system capital costs and operating expenses."

Bion stated the engineering report, produced with guidance and review from Bion’s engineering partner, along with the OMRI Listing, should allow it to advance with strategic relationships in the fertilizer industry.

The Catalyst: Europe Ahead of the US

Based on a report from Markets and Markets, the marketplace size for organic fertilizers is valued at US$7.9 billion in 2024 and is projected to expand at a compound annual growth rate (CAGR) of 11.5% through 2029 to reach US$13.6 billion.

"The rising preference for environmentally conscious food fuels the growth of the organic fertilizers industry," the report said. "This transition underscores a wider dedication to sustainable farming methods and reducing ecological damage."

Governments worldwide are responding to this transformation by implementing regulations and incentives to promote organic farming, enhancing the demand for organic fertilizers, Markets and Markets stated.

The global marketplace for biogas is projected to expand by US$19.51 billion from 2024-2028 at a CAGR of 6.01%, based on a report by Technavio.

Europe is significantly ahead of America regarding utilizing the technology to handle organic wastes. In a 2022 report by Waste 360, there were approximately 17,500 such facilities in the European Union in 2016 and fewer than 350 in the U.S. A 2024 article by Ecohaz showed there were almost 20,000 biogas plants in Europe at the time of the report. However, America is making moves to catch up.

A February 2025 report by the American Biogas Council reported that 2024 saw record numbers in the sector. The report noted that "In the 12 months ending in December, 125 new biogas projects came online, representing over US$3 billion in new U.S. investments. New projects in 2024 exceeded new projects in 2023 by 17%, while total investment in those projects increased by 40% compared to investment in projects opened in the previous year." This brought the total of U.S.-based biogas facilities to almost 2,500. 

Scott observed that it's a resource that's being squandered. "Farmers buy synthetic nitrogen fertilizer all day long to replace what is lost out of the nitrogen cycle. We upcycle what's already here, and it's more valuable because it is organic. You've got one of two choices: either lose it to atmosphere and runoff, where it becomes pretty nasty air and water pollution, or capture it, harness it, and repurpose it, and add value to your operations," he said.

Ownership and Share Structure

According to Refinitiv, about 20% of Bion Environmental is owned by management and insiders. 

About 1.24% is with Centerpoint Corp. with 0.70 million shares. Less than 1% is held by institutions.

The rest is with retail.

Bion has a market cap of US$11.34 million. Trading over the past 52 weeks ranged from US$0.04 per share to US$0.57.