Fertiliser is one of the biggest and most unpredictable costs on Scott McCalman’s farm.
A fifth‑generation farmer near Gunnedah on the Liverpool Plains in northwest New South Wales, he grows cotton, sorghum, canola, chickpeas and wheat.
“Fertiliser is a massive cost – and when prices rise, you feel it straight away”, says Scott. “And it flows right through the supply chain from the paddock to the supermarket shelf.”
Like most Australian growers, he depends on nitrogen fertiliser to maintain crop yields and soil health – yet close to 90% of it is imported, leaving farms exposed to global markets, energy prices and disruptions, like the Middle East crisis.
Fertiliser is one of the largest input costs in Australian agriculture, with industry estimates valuing national use at around $5-6 billion a year. It’s particularly critical for Australia’s old, highly weathered soils which are low in organic matter and nitrogen.
“Every time we buy a truckload of nitrogen, we’re looking at $60,000 to $80,000, and we need several loads a year,” Scott says. “That’s more than the price of a brand-new Toyota Land Cruiser. It’s a huge cost – but it’s essential.
“It means that some farmers are facing difficult conversations with their banks, as rising inflation, high interest rates and soaring input costs – especially for fertiliser and fuel – combine with global shortages.”
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For over a century, the Haber-Bosch process has underpinned the production of most of the world’s fertiliser. It involves converting nitrogen from the air into ammonia, using fossil fuels and large-scale industrial infrastructure.
“It’s one of the most important chemical processes ever developed,” says PJ Cullen, Professor of Chemical Engineering at the University of Sydney and co-founder of spin-out company, PlasmaLeap Technologies.
“But it’s a dirty, energy-intensive and centralised process that takes place in a small number of facilities worldwide – and it just doesn’t make sense anymore.”
PlasmaLeap’s technology offers a groundbreaking alternative approach.
By harnessing plasma – an energised gas – it converts nitrogen in the air into a form that plants can absorb – using electricity, rather than heat and pressure used in traditional processes.
“We’re essentially creating artificial lightning,” PJ says. “We use electricity to excite the air and turn nitrogen into usable nutrients.”
This process can produce nitrates directly or be adapted to make ‘green ammonia’ – the main ingredient in fertilisers.
As it only requires air, water and energy, this system has the potential to run on renewable power, using modular containers called 'eNFix’ units, which can be deployed on farms or at regional hubs.
I’d love to have a nitrogen‑making machine on my farm, powered by the sun. It would be an absolute game changer for modern Australian agriculture.
Owner and manager of Jedburgh Farming
For Scott, the real test is how this technology performs on the ground.
“When I heard of this, I was so excited, I rang the CEO,” Scott says. “The idea of having a domestically produced, home‑grown nitrogen source that we could manufacture right here on farm – rather than dealing with global markets – was incredibly attractive.”
Working with the University of Sydney and PlasmaLeap Technologies, he ran large trials with his sorghum crop, comparing traditional imported urea with plasma-produced nitrate solution.
“The results were fantastic – the crop looked healthy and performed well,” he says.
PJ says findings are encouraging, with further trials underway.
“What we’re seeing is that nitrates are performing better than standard urea,” PJ says. He adds that the efficiency of nitrogen use is another key factor – with the trial demonstrating that less of the applied nutrient was lost into the air.
“It's so critical for us to work directly with farmers,” PJ says. “You can’t solve these problems in a lab alone.”
Scott and his son, George McCalman, compare the fertilisers. Credit: Merri-May Gill.
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LinkWhat we’re seeing is that nitrates are performing better than standard urea.
Co-founder of PlasmaLeap Technologies
Scott says this innovation is about giving farmers more control and independence, while opening up new ways of working together – all of which help to keep grocery bills down.
“These modular units could be delivered to a single property or set up as a co‑op in a local community,” he says. “I’d love to have a nitrogen‑making machine on my farm, powered by the sun. It would be an absolute game changer for modern Australian agriculture.
“If we can produce nitrogen more affordably or more consistently, it will create a really robust, viable scenario for producers,” Scott says.
As the technology develops, it’s attracting wider interest, with plans to scale it globally.
“Farmers everywhere are facing the same challenges,” PJ says. “They want reliable supply, predictable costs and sustainable solutions. The hurdle now is making it work at scale – how cheaply can we build and replicate this.”
For farmers like Scott, those challenges are part of everyday life.
“We need agricultural producers and the land to remain viable long term,” Scott says. “As a grower, I'm really happy to bring food to Australian consumers – and to be able to do that in a more sustainable way, using Australian technology, is even more exciting.”
Top image: Scott McCalman at his property in Mullaley, Liverpool Plains. Photo: Merri-May Gill