HPNow

This interview details HPNow, a water treatment technology company based in Denmark. The interview is with Ziv Gottesfeld, CEO of HPNow.

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Could you talk a little bit about the origin of the company and just a little bit of that story for people that aren't familiar?

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HPNow was founded by two PhD students from the Danish Technical University, who between 2012 and 2014, developed a method for electrochemically generating hydrogen peroxide from water and electricity. When I met them, they had created a small, efficient lab setup that showed promise but was not yet field-ready. Our initial focus was on horticulture and controlled environments agriculture, identifying these as key markets for our technology.

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Can you talk a little bit about your thoughts on the current market?

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Our technology's versatility across various farming methods, geographies, and crops makes it robust against specific market fluctuations. The growing scarcity of high-quality water and the trend towards water recycling in agriculture heighten the need for effective water treatment. Our solution is becoming increasingly relevant as farmers look to treat lower quality water sources and recirculate water more efficiently.

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Can you talk a little bit about some of the challenges for the company?

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Raising awareness in the agriculture sector is our primary challenge. The industry is accustomed to using chemicals for water treatment, so introducing our chemical-free, sustainable solution requires significant market education. However, our method offers substantial benefits, and we are focused on demonstrating these to potential adopters.

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Would you say that you're still competing with traditional treatment methods, or are you starting to see other companies with similar technology?

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While there is no direct competitor offering on-site hydrogen peroxide generation like ours, we do face competition from other on-site solutions, such as chlorinators and ozone generators. However, our unique approach of generating high-purity hydrogen peroxide sustainably from water and electricity sets us apart.

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Can you talk about some of the metrics of the company so far, like how many employees you have, funding, customers, and any other statistics?

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By the end of this year, we anticipate having shipped around 200 systems, with a rapidly increasing adoption rate. We currently employ about 25 people and have a US sales office in Salinas, California. Our technology has been implemented in major agricultural regions globally, including the US, Europe, South Africa, and parts of Asia.

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If the US headquarters is in Salinas, that's obviously a large growing area for outdoor cultivation. The focus for the company is still indoor cultivation. Is that correct? Or are you starting to get into outdoor applications?

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Our focus is expanding to include outdoor applications. We anticipate several outdoor installations this year, recognizing the larger market potential in this area compared to controlled environments.

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Do customers use one system for a facility, or do they use multiple depending on the facility size?

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The deployment of our systems depends on the facility's setup. Our system integrates well with an irrigation route, so if a facility has one main irrigation system, they would typically need one of our systems. For larger or more segmented facilities, multiple systems may be necessary.

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Looking back on your time with the company, what would you say are some of your major lessons so far?

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Introducing new technology in agriculture is a gradual process, requiring patience and consistent market education. However, we've been pleasantly surprised by the positive impact our systems have had on reducing crop losses and improving yields, which has become a major selling point.

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Any other details about the business that you think we've missed, or do you think that it's been a pretty holistic discussion?

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A key aspect of our business is offering an on-site, green, and sustainable solution that is also safe. The positive economic impact of our technology, evidenced by reduced crop losses and improved crop yields, is a significant point of emphasis for us.

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On the economic impact, have you calculated a payback period on the system?

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Yes, our customers often see a quick return on investment, especially those experiencing significant crop loss reductions. Even for customers with lower plant mortality rates, our system demonstrates a strong payback compared to other on-site generation systems.

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What are some of the top crops that you're currently working with?

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We are actively involved with berries, tomatoes, cucumbers, peppers, and various nurseries and propagators. Our systems are also effective in vertical farming, particularly with leafy greens and hydroponic setups.

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If somebody wants to learn more about the system or try it, where would you suggest that they go?

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Interested parties can reach out to us via our website or by emailing sales@hpnow.com. Our team is always ready to provide detailed information and support.

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