The Kenaf Plant Promise: Green Hope for a Sustainable Future

Not everyone has heard of the "Kenaf" plant, but those who have studied its properties know it's a natural treasure. Kenaf has natural properties that make it an especially efficient plant for industry, most notably its absorption and storage of carbon dioxide from the air at the highest known level globally, which were recognized in the Kyoto Protocol on climate change. This property, among others, allows Kenaf to be used for developing efficient and environmentally friendly industrial raw materials, providing a better alternative to traditional and polluting materials, for example, in the plastics, construction, and insulation industries.

Quality alternative to polluting materials
Kenaf Ventures was established in 2018 to leverage the use of the Kenaf plant. Avishay Morag, one of the three [IH1] founders, serves as CTO. He is a serial entrepreneur with rich experience in agricultural and industrial management roles. Among others, he established and sold one of Europe's largest edible mushroom farms in Germany. He was also among the founders of Kibbutz Sufa in the Eshkol region of the Western Negev. Aviv Spiner, another founding partner, has been Avishay's friend for 40 years. The two have already led successful business initiatives together, including establishing and selling a company for manufacturing and marketing industrial products. Gideon Soesan, responsible for innovation in the company, brings research and applied experience in sustainability, agriculture, and new process development.

Asaf Ofer, a founding partner in the investment group, Pollen Innovation Ltd., which is among the shareholders of Kenaf Ventures, was appointed company CEO shortly after its founding. "I'm a serial entrepreneur with a long history in hardware and software," he says. "I was involved in establishing several technology companies, and on every project, I aspired to create a significant impact. I had the opportunity to become closely familiar with the activities of Kenaf Ventures and understand the essence of Kenaf. I was exposed to the research Avishay Morag conducted on the plant and his learning process, which clarified the enormous potential of Kenaf from industrial, social, and economic perspectives. As an entrepreneur and investor, I could relate to the founders' aspiration to create a positive environmental and social impact, alongside taking advantage of the significant business opportunity offered in the carbon offset and green raw materials markets. Together, we formed a shared vision to produce sustainable materials that will improve industrial manufacturing processes and provide a quality alternative to polluting materials. We build on the unique potential of Kenaf and create around it a value chain that we believe will change the rules of the game in the market."

Ofer adds that "recently we strengthened our management team with the appointment of Moshe Dayan, former CEO of Keter Israel, as Chairman of the Board. His extensive experience and industry expertise are a significant asset to the company and its growth."

Illustrate the change you aspire to achieve
"The technology we've developed enables the integration of natural fibers with traditional raw materials such as plastic, wood, and cement, reducing the amount of polluting materials and improving the properties of the final product. As a result, our products offer identical or better performance, are stronger, provide better thermal and acoustic insulation, and are lighter and more durable. Kenaf can replace 30%-40% of plastic being used today. In construction, we already have a patent for thermal blocks and plaster containing 80% plant material. The plant integration also provides better thermal and acoustic insulation. In insulation, fiberglass or rockwool made from mineral fibers are commonly used. The Kenaf alternative, containing 85% plant material, not only replaces it but it's also biodegradable, making it more environmentally friendly."

What about the price?
"As part of our strategy and value proposition, all our materials will always be priced the same as or less than the materials they replace. Additionally, they can be easily implemented using existing manufacturing methods and equipment, so no investment is required in process changes, new machinery, or field expertise. The work remains identical, and the properties and behavior are identical—only the performance is better. Bottom line, we offer products with excellent performance, at a competitive price, and neutral or negative carbon footprint."

From growing to product: Complete control of the value chain
Kenaf Ventures leverages unique experience and knowledge, among others, in extracting more biomass per growing unit area, meaning increasing growing output to 2.5 tons per dunam (compared to the current average of 1.2 tons per dunam). The processing is mechanical, and after carbon dioxide is collected from the air, it is converted to biomass in sustainable products such as bioplastic, rockwool alternatives, thermal blocks and plasters, and more. "The processing of the Kenaf stalk is done using such methods as separation of long fibers from the core, crushing, grinding, filtering, and drying—all in a closed system with no raw material waste, requiring no use of polluting chemicals and without consuming high amounts of energy," explains Ofer. "Our unique model, combining complete control of the value chain from seed to final product, allows us to offer green and competitive raw materials, adapted to the changing demands of the market. This is a significant competitive advantage that positions us at the forefront of technology in the field."

Are there no obstacles along the way?
"Part of the innovation in our working model is removing the barriers that green raw materials face in entering the market. Most of them are more expensive than the source material they replace, and for manufacturers and customers, this is a significant barrier. In addition, green products already on the market sometimes have inferior properties that sometimes tend to fluctuate. Industries are typically conservative, and the green trend doesn't necessarily interest them. It's not easy to introduce new raw material, and when it increases costs, the chance they'll consider it is very low," says Ido Hershkovits, COO.

It sounds so good that one can expect you'll soon have many global competitors.
Hershkovits: "To the best of our knowledge, there is currently no other private company in the world that maintains complete control over the entire value chain and can present similar developments in the field. This control allows us to ensure a consistent, high-quality, and stable supply. Thanks to this unique approach, we solve the well-known 'chicken and egg' problem between manufacturers and farmers and enable more sustainable, stable, and profitable production."

"Our developments include unique formulas, techniques, and growing and production methods for using kenaf fibers that are protected by intellectual property, which constitutes a substantial entry barrier for competitors and serves as a clear competitive advantage in the developing market for green raw materials. We are in advanced development stages for a biodegradable Styrofoam alternative, which will serve, for example, the construction and packaging industries. During our research and development, Kenaf seeds underwent a differentiation process through several years of cultivation. We learned to use the selected varieties for high effectiveness. Our technologies are simple yet efficient, without pesticide materials, without using much energy, and with very basic processing methods. We produce a low carbon footprint. Any competitor who enters will need to learn and achieve all of this to be competitive."

From Kfar Aza to the global innovation map
Beyond innovation, Kenaf Ventures also has a special story. The company factory is located in Kfar Aza, and the kibbutz is a strategic partner and part of the company, which is why it was directly affected by the events of October 7.
CEO Asaf Ofer recounts: "In the two days preceding the disaster, we were still making plans in the pastoral tranquility of the kibbutz about the global message we're bringing. In one day, everything changed," says Ofer. "Many acquaintances, family members, and our partners were affected by the attack, including our factory manager, Ori Schapira, who locked himself in a shelter on that accursed day for many hours and had already written farewell letters. One thing was clear to all of us even then: that we would continue our life's work, that we would commit ourselves to a brave partnership with the residents of the region for its revival, and not let any event weaken our resolve. The company was established out of Zionist and pioneering motives, and we are happy and proud to have also gained the support of the Kafrit Group, a leading plastics company owned by Kibbutz Kfar Aza. We found a wonderful community that welcomed us with open arms and a strong desire to help us succeed. The disaster motivated us to accelerate the expansion process and the sense of 'to be or not to be' boosted our motivation. Despite the challenges along the way, fortunately, we made it through the period. In the past year, we received two grants as part of the first preparatory program for developing our Styrofoam alternative. We also received a grant under the Mofet program to scale up in the plastics field, secure our first orders, and plan our next factory. We are now looking for strategic partners and focusing on establishing the first factory in Israel as a base for commercial production and global expansion. You could say we're at a breakthrough point heading toward market penetration."

Where do you believe you'll be in five years?
"We see Israel as a successful base for development and innovation, a kind of 'model apartment' from our perspective, but we aspire to become a leading global player in the field of green materials. In the coming years, we will focus on expanding our activities to strategic markets such as India and Spain, where we will build advanced production facilities and develop strategic partnerships. Our vision is to lead the green revolution in industry and to be a leading supplier of innovative, efficient, and sustainable solutions. We will expand our production lines, develop new markets, and deepen cooperation with customers worldwide. From an environmental-social perspective, we will maintain our commitment to the local community in the region. We will continue to contribute to the economic and social revival and growth in the area and work toward our shared vision for a world that is cleaner from carbon emissions and polluting raw materials."

Kenaf Ventures Year established: 2018. Founders: Avishay Morag, Aviv Spiner, Gideon Soesan, Asaf Ofer, and Ido Hershkovits. Field of activity: Cleantech (green raw materials). Leading motto: Doing good for the world is not just a slogan.

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In collaboration with Kenaf Ventures