Ostara Nutrient Recovery Technologies Inc., Vancouver, B.C., announced on Oct. 2 that it has entered into a long-term granulation tolling agreement to ramp up production of its Crystal Green sustainable phosphorus-based fertilizer products at a facility in the southeastern U.S.
First production at the commercial tolling facility is expected to start on Oct. 15, and will scale up with the completion of necessary equipment upgrades and the receipt of pending regulatory approvals. While the specific location of the facility was not revealed due to confidentiality agreements, Ostara confirmed that it is in Florida. The company expects to reach full production capacity at the facility in early 2020.
“Market demand for our products significantly exceeds our existing production capabilities, and this partnership allows us to put some recently-acquired patented production technologies to work at an established facility with significant storage capacity, rail and truck access and other accretive infrastructures,” said Ryan DeBerry, Ostara’s Chief Operating Officer.
Ostara is a privately held company and does not disclose operational or financial metrics, but DeBerry said the new tolling agreement effectively triples the company’s existing production volumes. He said Ostara continues to seek new sources of production, and intends to add significant further capacity in the near-term.
“Over the past 12 months we have experienced significant uptick in market interest for Crystal Green and Crystal Green Synchro™, our co-granulated Crystal Green/MAP product,” said Dan Parmar, Ostara President and CEO. Parmar told Green Markets that Ostara’s early season orders have significantly exceeded total sales from the company’s last fiscal year.
“This new production will help meet the volumes demanded by Ostara’s ever-expanding customer base that includes North America’s largest and most well-established ag retailers and farmers, who demand our Crystal Green products for their proven ability to significantly increase crop yields and substantially reduce nutrient run-off,” he said.
Ostara’s Pearl technology recovers phosphorus and nitrogen from industrial, agricultural, and municipal water streams, and converts it into the company’s slow-release Crystal Green fertilizers, which are sold into the agriculture and turf markets through a network of distributors in North America and Europe.
Ostara currently has 22 nutrient recovery facilities located around the world, including four nutrient recovery facilities in Europe and the Middle East. “We are currently working with select companies in Europe to expand our local production capabilities, as this year’s agronomic results continue to show significant crop yield enhancement on European farms,” Parmar said.