Algaenite: Nitrogen Fixing Micro Algae

Lior Hessel is the CEO of Algaenite, a Growponics company revolutionizing sustainable agriculture through a patented bio-fertilizer made from nitrogen-fixing cyanobacteria. Addressing a major challenge in organic farming—reduced yields and high costs—Hessel leads the development of a novel "Bio Ammonia" solution that delivers 25–40% higher yields than traditional organic fertilizers, at competitive costs and with zero harmful emissions. Algaenite’s fertilizer is pathogen-free, water-soluble, and supports organic certification, offering a scalable, eco-friendly alternative to chemical fertilizers. Under Hessel’s leadership, the company has raised €2.5M from the EU and is poised for market launch within six months. DeliveryRank features an exclusive interview.

Can you walk us through the process by which your nitrogen-fixing cyanobacteria generate bio-ammonia, and how this contributes to carbon capture on a meaningful scale?

We are an engineering company that builds and operates hydroponic greenhouses, with H2O Farms as our U.S. center, based in Connecticut. We've been active in the region for about seven years, supplying retailers such as Stop & Shop, Big Y, and larger distributors like PFG, Fresh Point, and others. Our produce is locally grown and of high quality, cultivated using hydroponics. However, like most hydroponic growers, we rely on chemical fertilizers, which, while effective and safe, are neither certified organic nor environmentally sustainable.

Over time, our customers began asking: “Can you go organic?” Specifically, they wanted hydroponic produce that could also carry an organic label. We investigated, reaching out to peers and competitors in California and globally, and discovered a serious gap—no liquid organic fertilizer on the market was suitable for hydroponics. In fact, many warned us against trying to develop one, citing their own costly failures. That's why organic hydroponic produce is so rare today—current systems simply aren't compatible with organic certification.

As engineers and scientists, we saw this as a challenge worth solving. We knew it would require years of research and millions in funding. We approached the European Innovation Authority with our idea, and they awarded us a Seal of Excellence along with initial funding. Following a successful feasibility study, we secured a Horizon 2020 grant of €2.5 million, awarded only to companies with the potential to create both game-changing technology and scalable commercial impact. Fewer than 3% of applicants receive it. To match the grant, we invested another €2.5 million of our own, ultimately spending nearly $6 million to develop the technology.

We are now demonstrating it in Connecticut, where we are installing a pilot production system for our bio-fertilizer. The state reviewed and supported our work with an additional grant. Our system captures nitrogen from the air and converts it into ammonia—the foundational component for fertilizers and proteins—through a process known as nitrogen fixation.

Traditionally, this process has been done in nature by bacteria. But to feed the modern world, we've relied on the industrial Haber-Bosch process, which uses massive amounts of fossil fuel to produce ammonia. While it feeds the majority of the global population, it's unsustainable, consuming 3–5% of global energy and significantly contributing to climate change. As long as agriculture depends on Haber-Bosch-based fertilizers, it can’t truly be organic or sustainable.

What we’ve developed is a new kind of bio-fertilizer—liquid, nitrogen-rich, and produced entirely by living microorganisms in a closed-loop system. It’s certified organic and sustainable. We call it "Bio Ammonia." It allows hydroponic farms to be truly organic without sacrificing yield or efficiency.

This innovation is made possible through advanced engineering—photobioreactors powered by sunlight and optimized with AI, sensors, and smart controls. Inside these bioreactors are billions of cyanobacteria clones that fix nitrogen naturally. In essence, we're using solar energy not to produce electricity, but to produce food—a far more impactful use in this context.

It wasn’t easy. It took four years of focused R&D, starting during COVID, and involved complex, costly development. But we’ve now scaled it up and proven that it works. We're currently installing pilot systems in both the U.S. and Europe. Once these systems demonstrate commercial viability, they will enable farms to go organic, increase their profits through premium pricing, and contribute to environmental sustainability through local, clean fertilizer production and carbon capture.

It’s a win-win-win—for farmers, for consumers, and for the planet.

Your product reportedly increases crop yields by a significant margin compared to other organic fertilizers. What specific mechanisms or properties of your formulation contribute to this improvement?

When organic farmers talk about having issues with fertilizers, what they’re really struggling with—at the core—is nitrogen. That’s the key challenge. They can easily access organic sources of calcium, magnesium, potassium, phosphorus, and other essential nutrients. These elements are readily available and effectively absorbed by the plants. But nitrogen is a different story. It’s the largest and most critical component in any fertilizer, and finding a reliable, organic, and bioavailable form of nitrogen is incredibly difficult. That’s why nitrogen availability remains the single biggest limitation for organic growers.

Algaenite’s photobioreactors offer a sustainable alternative to the Haber–Bosch process. What are the biggest challenges you’ve faced in scaling up this technology, and how have you addressed them?

The biggest challenge in scaling up our system has been optimizing costs, particularly energy costs. It’s not technically difficult to grow these bacteria under ideal lab conditions—you can just use LED lights, control the temperature with heating or air conditioning, and the bacteria will thrive. But that’s not our approach.

Our bacteria are unique—they’re hybrids, somewhere between bacteria and microalgae, and they rely on light to grow. What we wanted was a truly sustainable, low-energy solution. So our goal was to grow them using only natural sunlight and ambient conditions. That meant finding a way to keep them alive and productive without artificial lighting, heating, or cooling. Essentially, the trick wasn’t in making them grow—it was in making them grow naturally and cost-effectively, under real-world farm conditions.

Optimizing those growing conditions without relying on external energy inputs took us a long time. But we’ve now reached a point where we’re seeing very strong results.

Beyond agriculture, Algaenite is exploring applications in plant-based proteins, cosmetics, and bioplastics. What criteria do you use to evaluate new markets, and how do you adapt your core technology for different industries?

One of the most exciting applications of our technology is in the protein sector. Everyone in the food industry is focused on protein—it's in huge demand. Traditionally, high-quality protein comes from animal sources, but that approach raises significant ethical, environmental, and sustainability concerns. On the other hand, most alternative proteins currently on the market are incomplete—they lack essential amino acids—and they often fall short in terms of nutrition and quality.

Our technology uses microorganisms—specifically, microalgae and bacteria—to produce a high-value, complete protein that’s comparable in quality to fish or meat. We genuinely believe, as do many others in the industry, that this represents the future of food. What’s more, we can produce protein concentrates for as little as $6 to $8 per kilogram—less than half the cost of most other alternative protein solutions—while maintaining superior nutritional value.

Interestingly, our innovation is also gaining traction outside of food. For example, L'Oréal in Paris reached out to us. They’re interested in bio-based ammonia for use in hair dye. Ammonia is a critical component in effective hair color treatments, but consumers are increasingly wary of seeing “ammonia” on product labels. Our bio-ammonia offers a sustainable, nature-derived alternative that could dramatically improve both product performance and brand perception from a public relations standpoint.

This application hasn’t yet hit the mainstream media, but we believe it holds enormous potential across multiple industries.

With commercial beta sites launching internationally, what are your key goals for these pilots, and how will they shape your go-to-market strategy and long-term impact?

The commercial beta sites represent our first critical step in market penetration. These sites are essential for demonstrating that our technology and products can deliver real, measurable returns on investment across the product life cycle.

At this stage, we’re focused on working with early adopters—those innovative customers who are willing to test and validate new solutions. Their success stories will form the foundation for building broader trust in the market. Once these early adopters prove the value of our solution, we expect the mainstream customer base to follow.

That broader adoption may take several years, but we’re confident that our approach—grounded in strong performance data and real-world impact—will pave the way for scalable growth.

If you would like to find out more about Algaenite, please visit https://www.algaenite.com/ and Algaenite Video