What if your farm could capture carbon with little or no change in your practices? That’s the goal of Andes, a California startup that has created a package of microorganisms designed to capture and hold carbon in the soil.
“We call it the Andes Carbon Program to make it easy,” said Gonzalo Fuenzalida, co-founder and CEO. “The actual product we’re selling is carbon removals.”
The company has developed a package of microorganisms that can be used as a seed treatment for soybeans, for example, or it can be placed in the planting furrow of other crops. This one-time application is all that is needed to increase the carbon capture of the farm. Microorganisms do the work, taking carbon dioxide from the atmosphere and holding it in the soil.
The simple act of treating a seed or using an in-furrow application is what distinguishes the Andes Carbon Program – that, and the fact that the company pays farmers upfront for carbon capture.
Fuenzalida says that the company has developed accredited methods to measure the impact of its product use, measure the carbon obtained and sell the carbon removals to willing buyers. And, he said, many well-known brands are on the market looking for proven carbon removal.
By 2022, the company has contracted 25 farmers on about 25,000 hectares for the program. Farmers are paid for the acres enrolled but must allow the company to take real soil samples. By 2023, the program expands to 50,000 acres in North and South Dakota, Minnesota, and Wisconsin.
Challenge and opportunity
Kaitlyn Baab, vice president of operations, says the 50,000 acres contracted for 2023 means the company has met its goal. “We are oversubscribed,” he said. “We use word of mouth and referrals to sign up farmers.” While there is an incentive for farmers to provide valid referrals to the company for several hectares, there is no chance to sign up for 2023.
And why the interest? That’s an important upfront payment. “The impact on farmers’ net income and, basically, a farmer’s growing season is significant,” Fuenzalida said. “For example, in North Dakota, the average soybean income is $60 per acre. If we add a minimum of $10 per acre, that means an increase of 16% in net income. For a technology service or program that has effect in the same year is remarkable.”
That per-acre fee is paid up front, and all the farmer has to do is use the company’s free microorganism package — no need to add practices to capture carbon.
Another difference is the product offered by Andes. “The product we offer is different from what’s out there because of the high permanent component,” Fuenzalida said.
That permanence comes because microorganisms capture the carbon in mineral form, locking it in for years. In the carbon market, two main factors are incrementality and permanence. Fuenzalida explained that the permanence of the mineral form of carbon is becoming more popular with large customers who buy carbon-credits.
“It is difficult to predict how long carbon captured in organic form will last in the soil,” he added.
Permanent and price
Fuenzalida says that high-permanence carbon removals are now mostly focused on direct carbon capture using intensive technology to remove CO.2 from the air. Those carbon removals cost buyers up to $1,000 per carbon removal.
“We are targeting that, within 18 months, we will be below $100 per carbon removal, and that will be amazing for buyers. For the first time they will see high permanence at a lower price point,” he added. . “What we’re doing is opening up this opportunity for farmers to use this carbon opportunity.”
The most suitable soils are those with a relatively neutral pH and good rainfall. “And those are the ideal conditions for it [carbon] mineral that will remain in that form for thousands of years,” he said.
In addition, the company’s goal is to make the opportunity available for farmers of all sizes, instead of concentrating on only a few large farmers.
“One of the challenges we are working on is how we are fair in the process of selecting farmers,” Fuenzalida said. “We don’t want to work only with the largest number of farmers because that would give an unfair advantage to the community of that particular farmer.”
Baab said the program can be used with corn, soybeans and wheat, and they are working on adding canola in 2023. You can learn more at andes.bio.