PHAXTEC Awarded USDA SBIR Grant to Advance Sustainable Fertilizer Technology

Innovative PHA-based coating technology aims to improve fertilizer efficiency, reduce environmental impact, and create value across the agricultural supply chain

PHAXTEC, an innovator in sustainable materials, today announced that it has been awarded a grant by the USDA under the Small Business Innovation Research (SBIR) program. The highly competitive program supports breakthrough innovations with strong commercial potential and societal impact.

The grant recognizes PHAXTEC’s development of biodegradable polyhydroxyalkanoate (PHA) fertilizer coatings designed to significantly improve nutrient efficiency and reduce environmental harm.

Addressing a critical agricultural challenge

Global food production is expected to nearly double by 2050, placing increasing pressure on agricultural systems. At the same time, fertilizer — one of the most critical inputs in modern agriculture — remains highly inefficient. More than 50% of applied nutrients are lost through runoff and volatilization, leading to increased costs for farmers and significant environmental consequences, including greenhouse gas emissions, soil degradation, and water pollution.

A new approach to fertilizer performance

PHAXTEC is developing biodegradable PHA coatings that transform conventional fertilizers into controlled-release systems. These coatings regulate how nutrients are delivered over time, aligning release with crop demand and reducing losses.

The underlying mechanism enables water to penetrate the coating, dissolve the fertilizer, and create internal pressure that drives a controlled, gradual release of nutrients through a tunable polymer membrane. This results in improved nutrient efficiency, reduced input requirements, and more stable crop yields – without requiring changes to existing fertilizer products.

Material innovation with commercial scalability

PHA and its copolymers are the only thermoplastics naturally occurring in nature. They are renewable and fully biodegradable in marine, freshwater, and soil environments, leaving no microplastics behind.

PHAXTEC’s proprietary PHA production technology enables the company to meet market-relevant cost targets, supporting scalable adoption and seamless integration into existing fertilizer production systems.

Value across the agricultural value chain

PHAXTEC’s technology offers benefits across the entire agricultural ecosystem. Farmers can reduce input costs and improve efficiency, fertilizer producers can develop higher-margin, value-added products, and the environment benefits from reduced emissions and pollution.

“This recognition strengthens our commitment to advancing high-performance and resilient innovation in agriculture,” said Anindya Mukherjee, CEO of PHAXTEC. “It is a compelling opportunity to deliver meaningful value across the entire agricultural value chain.”