grow more food. fight climate change
TRANSCRIPT
Copyright © 2020 Locus Agricultural Solutions
This company works to directly impact the following UN Sustainable Development Goals
Soil “Probiotics”Grow more food. Fight climate change.
Problem: The World is Facing a Climate Emergency
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Over 20 countries have committed to being net zero by 2050 but have no path to it. Most technologies in development aim to mitigate future emissions, but do not remove carbon already in the atmosphere.
The 2019 UN Environment Program states that if emissions can be reduced by 7.6% annually, the world can avoid exceeding the 1.5oC global temperature threshold.
Recognizing Agriculture as Part of the Problem
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• The UN estimates that in less than 60 years almost all fertile topsoil will be lost due to industrial agriculture1
• Regenerative agricultural practices, such as minimum tillage and cover cropping, can help put carbon back into the soil at rates of 0.2-0.5 tons per acre annually2
• However, due to issues such as short-term yield loss, very few conventional farmers have transitioned to regenerative practices
1https://www.scientificamerican.com/article/only-60-years-of-farming-left-if-soil-degradation-continues/ 2Rodale Institute
Industrial agriculture causes between 11-33% of global greenhouse gas (GHG) emissions
Farmers Barely Make Ends Meet, Making Change More Difficult
While cost rises, produce prices remain depressed. Climate change effects, such as increasingly unpredictable weather patterns, add to these challenges
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Agriculture Is Also Part of the Solution
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What if it were possible…
Locus AG Can Accomplish All of This and More
..to substantially reduce agriculture’s
carbon footprint IMMEDIATELY?
..for farmers to grow more with less, improving their
bottom-lines as well as the health of their soils?
..for farmers to be secure against weather
changes and market pricing fluctuations?
75%+ reduction in soil nitrous oxide emissionsOne of the key contributors to global warming
Solution: Rhizolizer® Soil “Probiotic” Technology
Organic treatments with no change to grower practiceCost-effective and easy to apply
Up to 43% yield increases to incentivize farmersAcross most crops, soil types and geographies
10%+ reduced fertilizer inputs without impacting yields Money to farmer, reduction in carbon intensity, improved soil health
Grow more food on less land, increase revenue, fight climate change AND reduce the use of chemical inputs TODAY on a worldwide basis
Up to 9 tons of carbon sequestered/acre annuallyPotential to make negative-carbon food and fuel when combined with other sustainability efforts
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Typical Agronomic Results
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Crop yield increases up to:42% Cantaloupe
5% Corn
14% Cotton
31% Potatoes
9% Sod
17% Strawberries
18% Tobacco Leaf Width
Tomatoes20% Watermelon
34% Citrus
20% Corn
32% Cotton
9% Peanuts
31% Potatoes
9% Sod
22% Strawberries
40% Tomatoes
34% Watermelon
43% Cantaloupe
35% Apples
67% Hemp
6% Wheat
Sequestration in just these six crops alone can reduce annual greenhouse gas emissions in the U.S. by
Locus AG’s “Probiotics” Supercharge Carbon Sequestration
818,451,600 tons
Drastic Increases in Carbon Sequestration
4.7%
1Metric tons of CO2 equivalents/acre annually | Initial top trial results compared to grower practices 2Estimation from the USDA 3Citrus and grape measurements from Texas A&M, other crops validated by Ramboll
Third-Party Verified
Measurements3
Increases in CO2e Sequestration
Total U.S. Acreage2
CO2e Sequestration
Potential
TurfgrassAZ, CA, NC 8.6 tons per acre1 40,000,000 344,000,000 tons1
AlmondsCA 6.2 tons per acre1 1,090,000 6,758,000 tons1
CornCA 4.9 tons per acre1 94,000,000 460,600,000 tons1
CitrusFL 4.4 tons per acre1 700,000 3,080,000 tons1
GrapesCA 3.5 tons per acre1 1,060,000 3,710,000 tons1
CherriesCA 3.3 tons per acre1 92,000 303,600 tons1
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(compared to 7.6% annual target from the UN
Environment Program)
Significant Reduction in Soil Nitrous Oxide Emissions
Rhizolizer decreases N2Oemissions by:
Why is this impressive?This reduction is separate and in addition
to any fertilizer input reductions
More than 70% of human generated Nitrous Oxide (N2O) emissions, which is 300x worse as a greenhouse gas (GHG) compared to CO2, come from fertilizer use
1Citrus and potato data collected and verified by researchers at Texas A&M UniversitySource: EPA
75-85% 60%187%1
Corn Citrus Potatoes
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N2O accounts for 6% of global GHG emissions
Yield Increases with Reduction in Fertilizer Inputs
Growers in numerous crops have
reduced NPK fertilizer by 10%-50%
on their own after the second year
of treatments without impacting yield
Reduction in fertilizer use directly
impacts downstream water bodies
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Grower's Practice Rhizolizer +0%Fertilizer
Reduction
Rhizolizer +10%Fertilizer
Reduction
Rhizolizer +20%Fertilizer
Reduction
Yie
lds (
Bu/a
cre
)
Corn Yields with Fertilizer Reduction Walworth County, WI
Fertilizer inputs add to the carbon intensity of agriculture
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A 10% reduction in fertilizer use (without
including yield increases) approximates
to savings of $15-$20/acre for a corn
farmer who averages between $40-
$75/acre in profitability
Increasing Root Mass: The Key to Superior Results
Up to 150%+ additional root mass, with more fibrous and brace roots
And significantly higher nodulation
Soybean
Grower’s Practice
Rhizolizer
RhizolizerGrower’s Practice
Rhizolizer
Earth worms are indicators of healthy soil
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RhizolizerGrower’s Practice
Sod/Turf Grass
RhizolizerGrower’s Practice
Strawberries
Corn
CarbonNOW™: Compensating Growers for Climate-Smart Practices
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Locus AG’s new CarbonNOW™ carbon program gets growers paid for the past five years of conservation practices and maximizes future earnings
Carbon Marketplace
ProgramManager
Double or Triple Income
Carbon CreditsMonetize the carbon they sequester at $15/ton
Treatment BenefitsIncrease yield and decrease costs by scaling back on fertilizer use
Unmatched Value Proposition:
Farmers increase revenuein two ways:
The only program offering both comprehensive carbon credit payments and access to soil treatments that directly increase farmer profits.
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FARMERS CAN EARN
$107.70-$162.30/acre
In fertilizer savings
$12.60/acre
In more yields
$35.10 -$89.70/acre In additional
carbon credits
$60/acre
+ +
Rapid Scaling Potential for A Global Impact
Fermentation facilities can be built within months at 1/10 of standard production costs for easy global scaling, even in developing nations
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Improves Worker SafetyNon-toxic, non-GMO solutions are safer for humans
Unmatched Safety and
Societal Benefits
Feeds An Increasing PopulationIncreases crop productivity to grow more food in less time
Offers Safer Food Non-toxic, non-GMO and organic certification make treated food safer for consumption
Supports Local EconomiesProvides meaningful employment and commerce
Reduces Chemical RelianceEliminates international supply chain issues
More Cutting-Edge Products in Development to Replace Chemicals
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Soil amendments to improve phosphorous uptake from soils that also sequesters carbon• Reducing phosphorous fertilizer use • Phosphorous run-off is a key enabler of algae blooms
Bio-pesticides to replace more toxic and potentially carcinogenic pesticides• Help farmers, even in more difficult geographies transition to organic farming
By-products of microorganisms that reduce soil salinity and improve water-use efficiency• Reduce water use and wash out salts increasing yields for farmers
Currently in Commercial Trials
Leadership Team
Alex FotschVP, Agricultural Operations
Responsible for the development of Locus AG’s field-testing program and agricultural business plan. 2020 Forbes 30 Under 30 and formerly elected delegate to the Roundtable for Sustainable Biomaterials.
Paul ZornerChief Agronomist
Karthik KarathurPresident
40+ years of experience in global agricultural product development, operations and investment with 35 issued U.S. patents. An adjunct Professor of Horticulture and first U.S. citizen to be named a Queensland Champion.
Designated with building the low-carbon business platform for Locus AG. Instrumental in launching Locus Bio-Energy, an affiliate of Locus AG, into a high-growth business. Management consultant by background with McKinsey & Company.
David Kolsrud
24 years of proven experience in the renewable energy industries and an active member of E2. Currently on the board of Badger State Ethanol
Jerry Lynch
Served in leadership capacities of numerous stakeholder initiatives including co-chair of the Board of Trustees of the Keystone Policy Center
Tony Michaels
Former Chief Executive Officer and Board Member at Midwestern BioAg and respected leader in the study of nutrient cycling at local and global scales
Responsible for building all Locus businesses. Previous co-founder & Chairman of GanedenBiotech, Inc., the premier probiotic supplier in the U.S., where he was responsible for drivingoverall performance, strategic direction, and shareholder value.
Responsible for envisioning and developing
research capabilities, scientific products, and intellectual property (currently over 135 issued patents). Previous co-founder & Chief Scientific Officer of Ganeden Biotech, Inc., and responsible for the discovery of best-in-class oral and topical probiotics.
Former lead scientific administrator of the Soviet Union’s biological R&D program, supervising 32 facilities and 40,000 administrators and awarded Barkley Medal in 1994 for his public service and contributions to world peace.
Drives vision, strategy, operations and commercial development. Professional consultant with over 25 years of experience in agribusiness, consumer & professional pest management industries, holding executive positions at Terramera, Syngenta, Monsanto and more.
Supported by 17 experienced scientists from around the world17
Keith HeidecornVP, Sustainability
Responsible for the development of sustainable strategies and data pertaining to the low-carbon business.
Key
Ad
viso
rs
Dr. Kenneth AlibekSenior Vice President, R&D
Andrew LefkowitzCo-Founder, Chairman
Sean FarmerCo-Founder, Chief Scientific Officer
Grant AldridgeCEO
Founders’ Proven Track Record
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Probiotic Experience
• Co-founders previously built Ganeden,Inc. into the leading science- and IP-basedprobiotic supplier globally
• 135 patents issued; 27 studies publishedin peer reviewed journals, 3 ingredientsapproved by FDA for safety, firstprobiotic certified as non-GMO andmeets US Pharmacopeia standards,including the first spore-former approvedin China and India
• GanedenBC30®, Ganeden’s main product isnow present in over 1,000 products onsale in over 60 countries
• Ganeden sold its OTC brands to a portfolio company of TPG in 2011 for 3.0x revenue in a process runby Houlihan Lokey
• Ganeden sold the business in 2017 to Kerry Holdings for 7.7x Revenue and 24x EBITDA, in a processrun by Rothschild; achieved historic multiples in the food and beverage ingredients sector
Industry Recognition
…..for what was only commercialized in January 201821
Invited Panelist at UN Climate Change Conference, Madrid 2019
National Publicity: Fast Company
Our natural and sustainable “probiotic”
trend is gaining national awareness and
rapid adoption across a variety of
audiences.
https://www.fastcompany.com/90303108/these-probiotics-
for-plants-help-farms-suck-up-extra-carbon-dioxide
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We are at the forefront of simple,
clean solutions to the world’s largest challenges
Copyright © 2020 Locus Agricultural Solutions24