Nitricity’s Big Raise Signals a Fertilizer Shift

A $50M raise for Nitricity signals growing confidence in low-carbon fertilizers as the company targets commercial production by 2026

15 Dec 2025

A $50m funding round for California-based Nitricity is sharpening investor focus on low-carbon fertilisers, as the US agriculture sector faces pressure to cut emissions and reduce reliance on fossil fuel-based inputs.

The financing, led by climate-focused investors World Fund and Khosla Ventures, will be used to scale production of a liquid organic nitrogen fertiliser and to build the company’s first commercial manufacturing plant in California by 2026. The round is among the largest in the nutrients sector this year and reflects growing confidence in alternative fertiliser models.

Nitricity produces nitrogen fertiliser using almond shells, air, water and renewable electricity. The process is designed to bypass conventional methods that depend heavily on natural gas, leaving farmers exposed to volatile energy markets and supply disruptions.

“This funding allows us to move from proof to scale,” a Nitricity executive said, adding that demand from growers had already exceeded pilot production capacity.

The company says field trials have shown yield increases of up to 30 per cent for participating farmers, helping to secure early commercial interest. Nitricity added that all output from its initial facility has been committed under long-term supply agreements running through to 2028.

The new capital will fund construction of a commercial-scale plant in the town of Delhi, California, which the company expects to increase output many times over current pilot volumes. Initial sales will focus on specialty crop producers, with expansion into broader US and European markets planned over time.

For farmers, the appeal of alternative fertilisers is not limited to environmental considerations. Supply security and more stable pricing are becoming more important as fertiliser markets remain sensitive to global energy shocks.

Analysts say the deal highlights a broader shift in agriculture, as food companies, retailers and regulators push for lower-emission supply chains. Fertilisers, once viewed mainly as a yield input, are increasingly tied to risk management, brand reputation and access to export markets.

Challenges remain in scaling new production technologies in a sector dominated by large global producers. But the size and timing of Nitricity’s latest funding round suggest investors believe newer entrants can gain ground as commercial plants come online and demand for lower-carbon inputs grows.