Biofuel innovator Pikkl challenging the rural energy transition
The team’s novel approach piqued the Pitch judges’ interest, among a crowded field of worthy competitors.
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The winner of the final 2024 round of the Pitch has developed an algae-based biofuel that could allow farmers to completely replace their conventional diesel and recoup the cost of implementing the system in just three years.
“We need to do diesel differently,” Pikkl co-founder and CTO Jacinta May told the Pitch audience.
Pikkl, which aspires to be part of the rural renewable energy transition, took out the top prize among a field of genuinely exciting emerging ventures. The venture works with farmers and remote communities to produce their own biodiesel and fertiliser from algae grown on-site.
Biodiesel is an attractive alternative energy solution for farmers who rely on diesel to power their farms, yet are reliant on overseas supply. Recent diesel shortages have shown just how much the agriculture sector is at the mercy of global markets for this vital input.
“Australian farmers are in a pickle, while 80% of the energy used on farms is diesel, more than 90% of this is imported from overseas. This leaves farmers vulnerable to price fluctuations and supply chain disruptions,” says Pikkl co-founder and CEO, Nicolas Christopher De Matteis.
“Farmers are also under pressure to transition to green alternatives — alternatives which, up until now, are wildly unreliable, costly and not as green as many would lead you to believe,” says Nicolas, who has a background as a mechatronics engineer and software engineer.
The way it works, farmers attach the Pikkl system to their existing wastewater infrastructure, recycling the water as part of the process. The biofuel can be used to run farm machinery without it requiring alterations and the fuel has been tested on farm machinery like Jon Deere tractors.
The Pikkl system operates on 1,000 square meters, about the size of a big barn. The average Australian farm is 2,500 hectares. “Our system is only a dot by comparison. We don’t even need to use productive land,” says Nicolas.
The Pikkl team says its system is four times more productive that competitor systems, and benefits from being low maintenance, with negligible contamination risk. At $1.14 a litre for Pikkle biodiesel versus $2.20 a litre for regular diesel, it’s also more than cost competitive.
Pikkl uses a razor and blade business model, where the razor is a one-time installation of the system on farm and the blade comprises smaller, recurring purchases for maintenance and chemical refills over the system’s 10-year lifetime. Each system is expected to generate
$160,000 a farm over this time. Pikkl estimates its addressable market is $900 million across 18,000 crop farmers in Australia alone.
“We already have partnerships with leading biotech universities and we’re strengthening partnerships with major farming organisations,” says Nicolas.
Right now, the priority is developing customer channels and pilots, with five letters of intent already signed.
As the Pitch winner and thanks to SmartCompany, Dell Technologies and Dell For Startups, Pikkl will receive a $10,000 technology hardware pack prize to help scale its venture. The prize includes the opportunity to join Dell’s mentoring program.
Candidates for the Pitch were fortunate to be evaluated by a panel of venture capital luminaries including Techstars MD Kirstin Hunter; head of venturing at x15ventures, Maja Enander; AirTree investor Raaj Rayat; as well as William Hasko, small business marketing director at event partner Dell Technologies.
At the event, Will noted start-ups need to make the most of the current technology cycle.
As our CEO & Chairman, Michael Dell has commented, ‘the models we have today are pretty amazing, but they’re also the worst they will ever be.’ It’s a fascinating reminder, AI is changing everything we do and the change is only going to accelerate. I want to challenge start-ups to think about how they will get through the next two years leading the way, not get left behind,” says Will.
“Start-ups are in a unique place where they have the flexibility and agility to link in with and be at the forefront of some of these changes. Founders also have the freedom and flexibility to make many choices, including who they partner with.”
Research from FastCo & Inc, sponsored by Dell Technologies shows 68% of entrepreneurs report significant revenue growth because of technology, yet only 20% are piloting AI use case studies. Will noted this is an opportunity for start-ups to be ahead of the market.
Next-level impact: How to invest in tech to fuel innovation and growth — Fast Company
Fast Company and Inc. surveyed 500 startup entrepreneurs globally, while also interviewing founders and experts, to explore how best to handle the everyday challenges of running a startup. The survey, sponsored by Dell Technologies and NVIDIA, revealed that, while there’s no magic bullet, there are tech-driven ways to help your business thrive and grow.
“Hesitancy is the greatest risk to start-ups. If you’re paralysed trying to make decisions, you could get left behind. Knowing where to head is where partners come in. They add stability to your business when all else is chaos,” he says.
It was a successful end to a successful Pitch series. Congratulations to all this year’s winners.
Read now: What’s next for the Pitch winner, architecture platform Oltre
