Bayer AG (NASDAQ:$BAYRY) is one of the world’s largest agricultural chemical companies. Recently, the company joined a $100 bet that the next breakthrough in crop fertilizers will be found inside a biological Petri dish.

Specifically, Bayer’s LifeScience Centre division is forming a startup to focus on developing biological solutions to reduce the use of nitrogen-based fertilizer, or render farmers’ use more efficient.

The plan will be underpinned via a Series A investment from the two companies and hedge fund Viking Global Investors LP.

The business remains unnamed still, but will focus on plant-based microbes, specifically, finding ways for microorganisms to help plants and the soil assimilate nitrogen molecules from the air or other sources.

This comes from a larger effort for research to harness the microorganisms in plants and soils in improving crop yields within the agricultural sector. Reducing the amount of nitrogen fertilizer needed to feed plants could alleviate environmental concerns over water contamination and greenhouse gas emissions.

The Bayer group plans to hire 50 people in testing the new biologics centres. Recently, the company also closed its $66 billion acquisition of Monsanto Co. (NASDAQ:$MON), ramping up its biologicals portfolio.

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