Periodic Reporting for period 1 - LiveSEN (In-Field Live Sensing of Nitrate in Crops for Real-Time Fertilization Adjustment)
Período documentado: 2018-06-01 hasta 2019-11-30
The ERC POC LiveSEN explored the commercialization possibilities of a nitrate biosensor which was developed based on findings from the ERC Starting Grant “REDOX SHIELDS”.
The following goals were addressed with the POC:
• Goal 1: analyze the market and the main stakeholders
• Goal 2: Up-scale the manufacturing of the prototypes
• Goal 3: Assess our IPR position
• Goal 4: Develop a business plan for a spin-off company
Goal 1: We performed a market analysis for the nitrate sensor and the fertilization recommendation service that we are going to establish as part of the ongoing efforts. Our analysis suggests addressing especially small and medium sized farms in the beginning. This will help us to collect an initial data set that is large enough to refine the machine learning algorithms for precise recommendations (see also Appendix to Goal 1).
Goal 2: Heart of the POC are the nitrate biosensor test strips that we developed. Initial prototypes were already produced by a third-party manufacturer according to our designs. These prototypes however were costly due to the low quantities the we ordered so far. With the POC we identified suitable third-party manufacturers who can assist us in up scaling the test strip production and implement needed design changes. During the project we started negotiations with four suppliers (Binder GmbH, Metrohm Dropsens, Topflight, Z&P). These negotiations led to two orders of test batches from Topflight and Methrom Dropsens that were validated within the project duration. The electrodes from Methrom Dropsens fulfill our requirements and regarding technical specifications and scalability of the price per strip. The next step will be an order of a large batch of electrodes for field testing.
Goal 3: The research conducted in the ERC project REDOX SHIELDS has resulted in filing two patents necessary for the fabrication of the nitrate biosensor [1]. With these patents and the granted patent filled earlier by Prof. Plumeré [2] the FtO of LiveSEN is secured (see also Appendix to Goal 4).
Goal 4: With the project LiveSEN we explored the commercialization possibilities of our innovation. As part of the PoC we developed a business idea that we proposed to “EXIST Transfer of Research” competition of the German Federal Ministry for Economic Affairs and Energy. The business idea is currently under evaluation.
The full business plan (in German) is attached as Appendix to Goal 4.
Here a short summary of the business idea in English:
LiveSen's business model is based on selling innovative biosensors and related equipment consisting of Potentiostats, a reader for the biosensors, and an app that enables farmers to optimize the nutrient content of their fields. This enables them to reduce the use of fertilizers, which is saving costs and at the same time increases the yield of their fields through precise fertilization. For our app, we use the freely available satellite images from the EU’s Copernicus program to analyze the farmers' fields and to determine the optimal measuring points for the biosensors, while at the same time using the color spectra to visually inform the farmer of any undesirable developments in his fields.
Since we are meeting a traditional industry with a digital and innovative product, we expect a long and intensive start-up phase in which we must convince our target group. In the first 6-12 months our financial plan provides for a negative contribution margin. The core product of our company will be the patented biosensor, which we will sell in large quantities. Farmers with farm sizes between 30 and 100 hectares will be our first target group, as they have not yet been able to finance the capital-intensive products of the large industrial companies and market leaders. Our biosensors enable them to monitor the condition of their fields and optimize the nutrient content of their crops.
There are about 250,000 agricultural enterprises in Germany, of which about 28,000 each cultivate an area of at least 100 hectares. These farms often use contractors for fertilization or have their own fertilizer machines with state-of-the-art application technology. About 100,000 farms have a size of 25-100 hectares. These farms often use simple drag hoses for fertilization and do not have highly technical methods for measuring plant nutrients. For these customers, we want to provide a favorable solution to optimize their yield and make their fertilization efforts more efficient.
[1] Patent WO002019238887A1, Patent WO002019238751A1
[2] Patent US000009187779B2
The following goals were addressed with the POC:
• Goal 1: analyze the market and the main stakeholders
• Goal 2: Up-scale the manufacturing of the prototypes
• Goal 3: Assess our IPR position
• Goal 4: Develop a business plan for a spin-off company
Goal 1: We performed a market analysis for the nitrate sensor and the fertilization recommendation service that we are going to establish as part of the ongoing efforts. Our analysis suggests addressing especially small and medium sized farms in the beginning. This will help us to collect an initial data set that is large enough to refine the machine learning algorithms for precise recommendations (see also Appendix to Goal 1).
Goal 2: Heart of the POC are the nitrate biosensor test strips that we developed. Initial prototypes were already produced by a third-party manufacturer according to our designs. These prototypes however were costly due to the low quantities the we ordered so far. With the POC we identified suitable third-party manufacturers who can assist us in up scaling the test strip production and implement needed design changes. During the project we started negotiations with four suppliers (Binder GmbH, Metrohm Dropsens, Topflight, Z&P). These negotiations led to two orders of test batches from Topflight and Methrom Dropsens that were validated within the project duration. The electrodes from Methrom Dropsens fulfill our requirements and regarding technical specifications and scalability of the price per strip. The next step will be an order of a large batch of electrodes for field testing.
Goal 3: The research conducted in the ERC project REDOX SHIELDS has resulted in filing two patents necessary for the fabrication of the nitrate biosensor [1]. With these patents and the granted patent filled earlier by Prof. Plumeré [2] the FtO of LiveSEN is secured (see also Appendix to Goal 4).
Goal 4: With the project LiveSEN we explored the commercialization possibilities of our innovation. As part of the PoC we developed a business idea that we proposed to “EXIST Transfer of Research” competition of the German Federal Ministry for Economic Affairs and Energy. The business idea is currently under evaluation.
The full business plan (in German) is attached as Appendix to Goal 4.
Here a short summary of the business idea in English:
LiveSen's business model is based on selling innovative biosensors and related equipment consisting of Potentiostats, a reader for the biosensors, and an app that enables farmers to optimize the nutrient content of their fields. This enables them to reduce the use of fertilizers, which is saving costs and at the same time increases the yield of their fields through precise fertilization. For our app, we use the freely available satellite images from the EU’s Copernicus program to analyze the farmers' fields and to determine the optimal measuring points for the biosensors, while at the same time using the color spectra to visually inform the farmer of any undesirable developments in his fields.
Since we are meeting a traditional industry with a digital and innovative product, we expect a long and intensive start-up phase in which we must convince our target group. In the first 6-12 months our financial plan provides for a negative contribution margin. The core product of our company will be the patented biosensor, which we will sell in large quantities. Farmers with farm sizes between 30 and 100 hectares will be our first target group, as they have not yet been able to finance the capital-intensive products of the large industrial companies and market leaders. Our biosensors enable them to monitor the condition of their fields and optimize the nutrient content of their crops.
There are about 250,000 agricultural enterprises in Germany, of which about 28,000 each cultivate an area of at least 100 hectares. These farms often use contractors for fertilization or have their own fertilizer machines with state-of-the-art application technology. About 100,000 farms have a size of 25-100 hectares. These farms often use simple drag hoses for fertilization and do not have highly technical methods for measuring plant nutrients. For these customers, we want to provide a favorable solution to optimize their yield and make their fertilization efforts more efficient.
[1] Patent WO002019238887A1, Patent WO002019238751A1
[2] Patent US000009187779B2