ICL Launches Groundbreaking Biodegradable Coated Fertilizer Technology

Rhea-AI Summary

ICL has launched eqo.x, a revolutionary rapidly biodegradable release technology for urea fertilizers aimed at enhancing sustainable agriculture. This new controlled release fertilizer (CRF) technology is designed to meet the EU's 2026 fertilizer standards, improving nutrient use efficiency by up to 80% and supporting higher crop yields with reduced fertilizer application. ICL is investing $20 million in a new production line in the Netherlands to meet market demand. The global controlled release fertilizer market is projected to grow from $2.3 billion in 2018 to $3.86 billion by 2026.

Positive

• Launch of eqo.x technology, the first rapid biodegradable CRF for open field agriculture.
• Improves nutrient use efficiency by up to 80%, allowing for reduced nitrogen applications.
• Meets upcoming EU fertilizer standards set for 2026, positioning ICL favorably in the market.
• Investment of $20 million in a new production line to accommodate market demand.

Negative

• None.

First-of-its-kind release technology is a major advancement for sustainable agriculture and food security and will allow farmers to meet 2026 EU fertilizer standards

TEL AVIV, Israel--(BUSINESS WIRE)-- ICL (NYSE: ICL) (TASE: ICL), a leading global specialty minerals company, today ushered in a new era for controlled release urea with the launch of eqo.x, a groundbreaking rapidly biodegradable release technology designed for open field agriculture. This innovative solution is achieved through a coating, which will help farmers maximize agricultural crop performance while also limiting environmental impact, by reducing nutrient loss and by increasing nutrient use efficiency (NUE) up to 80%. The release technology also allows for increased or similar yields with reduced fertilizer rates, can help reduce the number and amount of nitrogen applications, and provides consistent and predictable nutrient release.

Importantly, eqo.x release technology is the first offering in the market to provide a controlled release fertilizer (CRF) coating for urea, which biodegrades more rapidly, and was specifically designed to meet future European fertilizer standards set to go into effect in 2026. The new technology will be applied to ICL’s CRF products for agricultural crops, including its Agromaster and Agrocote brands, and will help achieve a reduction in nutrient losses. This achievement is a key tool of both the European Farm to Fork strategy and the EU Soil Strategy for 2030, which aim to reduce nutrient loss by at least 50% by 2030.

“ICL is proud to introduce our most advanced CRF coating, eqo.x rapidly biodegrading release technology, which will both help regulate the release of nutrients on a daily basis – by responding to each crops’ specific needs – and result in higher nutrient use efficiency,” said Elad Aharonson, president of Innovative Ag Solutions for ICL. “Our innovative, sustainable, new technology will provide precision nutrition through a coating, which biodegrades more rapidly, and helps improve yield, reduce nutrient loss and simplify fertilizer application. Not only will this benefit farmers, it will also help the environment, as it will greatly reduce the leaching of nutrients into both the soil and groundwater, when compared to conventional fertilizers.”

ICL expects to have this innovative, new coating ready for farmers in the European Union by 2023 and, in order to meet expected market demand, is investing $20 million in a new production line for eqo.x release technology at its Heerlen facility in the Netherlands. According to Fortune Business Insights, the global controlled release fertilizer market size was $2.3 billion in 2018 and projected to reach $3.86 billion by 2026, resulting in a CAGR of 6.37% during the forecast period.

For more information on this groundbreaking release technology, visit the eqo.x website.

About ICL
ICL Group is a leading global specialty minerals company, which also benefits from commodity upside. The company creates impactful solutions for humanity's sustainability challenges in the global food, agriculture and industrial markets. ICL leverages its unique bromine, potash and phosphate resources, its passionate team of talented employees, and its strong focus on R&D and technological innovation, to drive growth across its end markets. ICL shares are dually listed on the New York Stock Exchange and the Tel Aviv Stock Exchange (NYSE and TASE: ICL). The company employs more than 12,000 people worldwide, and its 2021 revenues totaled approximately $7 billion.

For more information, visit ICL's website at www.icl-group.com.
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Forward-Looking Statements
This announcement contains statements that constitute forward-looking statements, many of which can be identified by the use of forward-looking words such as “anticipate,” “believe,” “could,” “expect,” “should,” “plan,” “intend,” “estimate” and “potential,” among others.

Forward-looking statements appear in this press release and include, but are not limited to, statements regarding the company’s intent, belief or current expectations. Forward-looking statements are based on management’s beliefs and assumptions and on information currently available to management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to: estimates, forecasts and statements as to management's expectations with respect to, among other things, business and financial prospects, financial multiples and accretion estimates, future trends, plans, strategies, positioning, objectives and expectations, general economic, market and business conditions, supply chain and logistics disruptions, energy storage and electric vehicle growth, the potential for new COVID-19 variants, global unrest and conflict, governmental and regulatory requirements and actions by governmental authorities, including changes in government policy, changes in environmental, tax and other laws or regulations and the interpretation thereof. As a result of the foregoing, readers should not place undue reliance on the forward-looking statements contained in this press release concerning the timing of the transaction, or other more specific risks and uncertainties facing ICL, such as those set forth in the “Risk Factors” section of its Annual Report on Form 20-F filed on February 23, 2022, as such risk factors may be updated from time to time in its Current Reports on Form 6-K and other filings ICL makes with the U.S. Securities and Exchange Commission from time to time.

Forward-looking statements refer only to the date they are made, and the company does not undertake any obligation to update them in light of new information or future developments or to publicly release any revisions to these statements in order to reflect later events or circumstances or to reflect the occurrence of unanticipated events.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220901005811/en/

Investor Relations Contact

Peggy Reilly Tharp

VP, Global Investor Relations

+1-314-983-7665

Peggy.ReillyTharp@icl-group.com

Press Contact

Adi Bajayo

ICL Spokesperson

+972-3-6844459

Adi.Bajayo@icl-group.com

Source: ICL Group LTD

FAQ

What is eqo.x technology launched by ICL?

eqo.x is a rapidly biodegradable controlled release fertilizer technology for urea designed to enhance nutrient use efficiency and sustainability in agriculture.

How does eqo.x technology help farmers?

It maximizes crop performance while limiting environmental impact by reducing nutrient loss and allowing for higher yields with lower fertilizer rates.

What investment is ICL making for this new technology?

ICL is investing $20 million in a new production line in the Netherlands to support the launch of eqo.x.

What market growth is projected for controlled release fertilizers?

The controlled release fertilizer market is expected to grow from $2.3 billion in 2018 to $3.86 billion by 2026.

How does eqo.x comply with EU regulations?

The eqo.x technology is designed to meet the new European fertilizer standards that will take effect in 2026.