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Swedish Construction Faces "Crisis Situation" As Environmental Court Shuts Down Cement Factory
Construction in Sweden could grind to a halt after the country's biggest cement factory was stripped of its licence to mine limestone on environmental grounds
By Marcus Fairs
July 14, 2021
Construction in Sweden could grind to a halt after the country's biggest cement factory was stripped of its licence to mine limestone on environmental grounds.
The ruling by the Swedish Supreme Land and Environmental Court last week means that the Cementa plant at Slite in Gotland could be forced to end production on 1 November.
Matilda Hoffstedt, manager of the plant, said the ruling would create "a crisis situation for Swedish cement supply" while Cementa said work on Foster + Partners' Slussen masterplan in Stockholm (top image) could be impacted.
However, Greenpeace campaign manager Carl Schlyter welcomed the decision.
"It is wonderful that the court chooses to comply with the environmental laws we have, not to aggravate the species crisis and that incomplete environmental impact assessments are not accepted," Schlyter told Swedish news organisation Dagens PS.
Sweden's second-largest CO2 emitter
The plant produces around three-quarters of all the cement used in Sweden. It is also the second-largest source of greenhouse gas emissions in the country, responsible for three per cent of all CO2 emissions.
The court ruling overturns an earlier decision by a lower court to grant the factory a licence to continue mining limestone, an essential ingredient in cement, for another 20 years.
"They tossed out their application to keep on mining limestone," said Daniel Jacobs, a journalist working at Dagens PS. "Now the construction industry is saying they're not going to be able to build anything in Sweden."
The licence was refused due to concerns over the impact on groundwater in the environmental assessment the factory had submitted. Greenpeace has also accused the plant of using its kilns to incinerate toxic waste without a permit.
Major construction projects at risk
Cementa, which is owned by giant German producer HeidelbergCement, said the decision would jeopardise construction projects in Sweden including major projects including the Slussen and Förbifart infrastructure projects in Stockholm and the Västlänken tunnel in Gothenburg.
“A renewed mining permit in Slite is a prerequisite for a long-term cement supply in Sweden, including for large construction and infrastructure projects such as Slussen, Förbifart Stockholm and Västlänken," the company said.
Cementa is the only cement producer in Sweden. It has a second, smaller factory Skövde in the south of the country.
Cement production is responsible for an estimated eight per cent of global carbon emissions. The emissions are largely due to the way that limestone, which is the main ingredient in cement, is processed.
The rock is crushed and burned to extract calcium, which is the binding agent used in cement, releasing the carbon into the atmosphere in the process.
Several companies are investigating ways of producing emissions-free concrete that does not require traditional cement including Carbicrete, which has developed a way of using industrial slag instead of cement as a binding agent.
The image of the Slussen masterplan is by Foster + Partners.
CANADA - QUEBEC: Billionaire Project In Saint-Bruno
This project is extremely interesting because it combines data centers with greenhouses. As you may know, data centers produce huge amounts of heat
Editor’s Note: This project is extremely interesting because it combines data centers with greenhouses. As you may know, data centers produce huge amounts of heat. In the cold climate of Quebec, greenhouses could use some more heat. It will be interesting to watch this project develop, and see if this new model for using waste heat to help grow food year-round is viable!
Martin Bouchard, the founder of the Copernic search engine and the 4Degrés data centers, wants to eventually build at least three high-intensity data processing complexes including the recovery of thermal waste. The total estimated bill will be around 5 billion.
Is the plan complicated? To put this into words: artificial intelligence, innovation, circular economy, high capacity computing servers, clean energy, greenhouse production, food autonomy; stir calmly and you will obtain the successful project on which Mr. Bouchard and his associates Vincent Thibault and Dany Perron have been working for three years.
The Quebec government is receptive to this project, La Presse has learned. The role of the monopoly of electricity distribution is essential since such a data center dedicated to artificial intelligence consumes twice as much energy in a year when compared to a city the size of Drummondville.
Construction has started on the first campus located in Lévis. Completion is scheduled for November 2022. The daily Le Soleil described the main features recently. QScale is planning a second branch in the Ecoparc de Saint-Bruno-de-Montarville, on the South Shore of Montreal, just behind the commuter train station.
“Saint-Bruno would be half the size of that of Lévis, our flagship. Ultimately, our vision is to be present in the main regions of Quebec.”
— MARTIN BOUCHARD
The unveiling of financial and strategic partners will be done soon. “We would like to make an announcement in the next few months, if not the next few weeks. We are going to announce our plan to become the world's top 3 in computing. We must have our food autonomy, but also our calculation autonomy, ”emphasizes Mr. Bouchard.
The serial entrepreneur, along with private investors, invested 30 million to start the project. The rest of the financial package will be revealed at the time of the official announcement. "We are working very hard to ensure that the ownership of the company remains entirely in Quebec. "
We are talking about big bucks: from 2 to 3 billion for the Lévis complex, 1 billion for the Saint-Bruno complex.
What is it about?
QScale aims to be a data processing campus with high computational density. Campuses seek to meet the needs of machine learning, the demand for which is growing with the arrival of artificial intelligence in enterprises. Consider the data calculations required to safely move autonomous vehicles forward. Mr. Bouchard cites Tesla, Volkswagen, Pfizer, and Goldman Sachs as potential customers.
“Compared to what you would find in a conventional data center, our fridge-sized server cabinets will have five times the processing capacity. It's going to heat up even more, ” notes the 48-year-old entrepreneur. Quebec has the advantage of having clean and cheap energy.
This type of infrastructure is only just beginning to emerge in the world.
“There is not yet a leader in high density processing. Americans like Colovore, in Santa Clara, and ScaleMatrix, in San Diego, are powered by fossil fuels, without heat recovery, and with high electricity costs. We will be at least 10 times bigger than them only with Lévis.”
— MARTIN BOUCHARD
The business plan provides for the recovery of heat released by servers to heat agricultural greenhouses.
"We want to contribute to the food self-sufficiency of the province with a potential of 400 hectares of greenhouses just for the first campus," he insists. However, all greenhouse vegetable production is currently grown on 123 hectares. "For this component, we are in discussion with several players," says Mr. Bouchard. Consultant for Savoura, André Michaud confides that he has never been contacted by QScale. He said he was puzzled when he learned about the outline of the project.
"We have a greenhouse robotization project using artificial intelligence to potentially automate physically demanding jobs," retorts Mr. Bouchard. In Lévis, we have adjacent farmland which is equivalent to the equivalent of 80 football fields, enough to produce 2,880 tonnes of raspberries and 83,200 tonnes of tomatoes. "
That's not all. Mr. Bouchard wants to add to these complexes an innovation zone specializing in artificial intelligence. “The AI Zone is the missing link between basic AI research and its application in manufacturing companies. "
IQ analyzes the file
The pharaonic project has appeared on the radar screen of the Legault government. "We heard about it," said an unnamed government source. It’s an interesting file that is being looked at.
It is at Investissement Québec (IQ) that the file is analyzed. The state's financial arm was on the list of organizations QScale wanted to solicit, after being listed in the Quebec Lobbyists Registry.
As for electricity, "we already have agreements with Hydro-Quebec. Everything is in order. They are very happy. I cannot disclose anything, it will be announced. It’s very large, ”says Mr. Bouchard.
It is the user-pays principle that applies when the promoter of a project wants to have access to the Hydro-Québec network. QScale's land is conveniently located near high-power substations.
For data centers, hydro rates typically start at 4.04 cents per kilowatt-hour (kWh) when the economic development rate applies. If applicable, the price is 5.05 ¢ / kWh.
CONTENT AND IMAGE SOURCED FROM LA PRESSE
Lead photo: QScale has started construction of the first high-intensity data processing complex in Lévis. Completion is scheduled for November 2022; Image sourced from QScale
June 3, 2021
WRITTEN BY:
ANDRÉ DUBUC, AND
JULIEN ARSENAULT
Joined Up Thinking: Food & Energy Grids
This article, written by our CEO and co-founder Charlie Guy, about the connection between our energy grid and food networks, originally appeared in Volume 35 of the Journal for Food Science and Technology.
It may not always feel like it at this time of year, but on our planet we are blessed to bathe in a constant and abundant stream of energy and warmth. Effectively, all of this energy comes from the sun before being transformed, stored or used in some way. From the organic matter that once formed our fossil fuel sources, to the climatic differences that drive our weather systems and the solar panels you might have on your roof.
Food is our fundamental energy source as individuals - it powers everything that we do in our daily lives. For almost all food types, the energy used to produce it is derived from the sun (ok, mushroom-heads may argue against this, but they are still feeding on organic matter). Because of this simple concept, our food and energy systems are intrinsically intertwined. Bizarrely though, this fact is often overlooked in the food supply chain, from producers, all the way through the distribution and cold chain, right up to ourselves, the end consumers. Our current food system separates out different energy types. Heat, electricity, fuel and light often end up as mere balance sheet inputs to the production of food and many energy inputs don’t get recorded at all.
This simplified way of thinking leads to us cutting corners for the sake of cost and not considering the absolute energy impact of our food production. There are no individuals at fault here, our economic system has lined us up to think in a linear fashion for the past few centuries and this has muddied the long-held practices of stewardship for the land. Effectively, our understanding of what we give and take from nature and the sun to produce our food is no longer in balance.
If we look at the inputs and flows of energy that make up global food production, we see many areas that we may not consider when we buy food products in our local supermarkets or greengrocers. Berners-Lee et al (2018) produced a high-level analysis of the global energy flows in food production, shown in Figure 1, ultimately showing that we grow enough calories to feed everyone on our planet, but we do not use or distribute them efficiently.
Figure SEQ Figure \* ARABIC 1 - The flows of global food energy (kcal/person/day) from the amount grown to the amount eaten. For crops fed to animals, the units are based on the global human population, not animal population. The left-hand bar divides the crops grown into those that are directly edible by humans and the grass, pasture & stover that is only edible by animals. The right-hand bar divides the nutrients eaten into that required for healthy human living and net excess consumption. Animal losses include all the losses inherent in animal husbandry, such as energy used for respiration, growth, movement, and reproduction and the wastage of animal parts not used as food. DOI: https://doi.org/10.1525/elementa.310.f1
When you consider the journey of a simple soil-grown lettuce, you must consider the following energy inputs and flows as a minimum:
- Preparation – soil, seed production, transportation of seeds, drying and storage of seeds, farming infrastructure, fertilizer/pesticide production
- Growing - the sun, soil, fertilizer/pesticide application, and waste, machinery, human labor, energy use if in a greenhouse/vertical farm
- Harvesting and storage – farm machinery, fuel, refrigeration and spoilage
- Processing and packaging – transforming raw materials into products
- Transportation - cold chain refrigeration, freight by lorry, boat or long haul air travel
- Consumption - home energy usage including storage and cooking
- Waste - throughout the chain and in the home
Through each of these processes, we are either adding energy to our food on its journey to our plates or we’re losing energy through losses along the way. This is why the impact of wasting food in the home is so severe, as we are not only wasting the energy that went into producing the food, but we are also wasting the energy that was used in the supply chain along the way too. Each of these losses, even if they seem small at each stage, adds up. Taking Berners-Lee’s analysis and comparing this to electrical energy usage, the average food wasted per person is equivalent to all 7.8 billion people on our planet leaving a reasonably-sized LED TV (64W) on for 24 hours a day, 365 days a year.
Ever more work is being done in the field of lifecycle analyses to understand and bring to light the impact of our foods. These individual losses need to be understood, quantified and then reduced in our vision of a more efficient combined food and energy system.
There is a clear comparison that can be made between our current food systems and the journey that our energy systems have been on over the last few centuries. Through the various energy revolutions, we have transitioned from distributed to centralized energy and food systems. Centuries ago, we were required to balance the use of wood and food, to heat and fuel ourselves, to sustain our communities, and avoid overconsumption of either energy source. Food and fuel tended to be distributed locally to fulfill the energy needs of the community and we had a better understanding of the link between the sun, our food, our energy and the need to prevent over-consumption to remain in balance.
Fast-forward to the 21st Century and the current paradigm of large power stations that distribute electricity through grids to people, whose only connection is the vibration of their phone when they plug it in to charge. There is zero connection to how or where the energy was produced. The equivalent analogy in food production sees swathes of industrialized monocropping, focused in certain areas of the globe. Products and ingredients are shipped halfway around the world and our only connection is to open the packet and experience their flavors. Arguably there are substantial “efficiencies” and economies of scale in this kind of production model, but at what cost? Is this what we want the next chapter of our food and energy systems to look like?
Renewable energy has a huge opportunity to bring us back to a more decentralized system. In simplistic terms, the fact that the wind and sun are well distributed around the world gives the potential for much more equitable access to energy production. Renewables also bring us much closer to the only real source of energy that we have, the sun, whilst revealing our true reliance upon it as well. There are some known issues regarding renewable energy storage, but the humble chloroplasts in plants long-ago worked out how to capture this energy and store it for use later on. We can learn from this and begin to look forward with a more joined-up view of our food and energy systems. Putting our farmers and stewards at the heart of this system, ensures that links can be rebuilt between food and energy production.
So how do we link our food and energy systems back together in a way that can provide enough food for all of us in the most sustainable way? Firstly, this challenge needs to be undertaken with the concepts of sustainable intensification and circular economy principles in mind. If these are new to you, do check out the Ellen Macarthur Foundation. Secondly, we need a diversity of thinking and solutions, including both technical and business innovations. There is no silver bullet here for such a complex problem.
Many solutions in both energy and food supply are coming to the fore already, albeit independently at the moment – local energy schemes and community-supported agriculture schemes (CSAs) both enable communities to benefit from locally produced energy and food. Can we imagine a future where we bring these together into combined food and energy schemes?
Controlled environment agriculture (CEA) is one emerging practice that allows us to do things in ways that previously we have not been able to do in open-field agriculture. Using CEA, indoor farms such as greenhouses and vertical farms, enable the inputs to the growth of fresh produce to be understood, controlled and optimised. Water, nutrients, light energy and environmental conditions can all be tweaked to optimise the output of the crop and to reduce the use of resources.
These farms allow us to understand the system of growing without impacting the local environment, by ensuring efficient energy and resource flows along with recapture technologies. They enable us to build farms anywhere in the world, to grow produce in a more decentralized, resource-efficient way that can help build resilience into our food system.
Opponents of CEA will point to the increased use of energy, but this is offset by the reduced energy requirements in transportation, processing, storage, fertiliser and pesticide usage. If you understand and match your local energy and food production, this is no longer such an issue. There are still challenges for the CEA industry, but the winds are blowing in the right direction.
Increasing the renewable energy mix on the grid will reduce the cost of energy over time and is the perfect power source for indoor farms. Spiky supply and storage may appear to present an issue, but the energy profile of an indoor farm can be tuned to the supply of the grid. Plants are great at storing energy and have inherent redundancy too, hence the possibility of using plants as a new form of battery becomes very real when we see our food and energy systems as one.
There are numerous flagship examples of CEA projects implementing many of these principles worldwide. From the advanced Dutch greenhouse networks, to Sundrop Farms in Australia, to new combined heat, power and greenhouse projects in the UK such as Beeswax Dyson’s new strawberry growing facility. From Growing Underground’s vision of circular farms, to LettUs Grow’s partnership with Octopus Energy and the many projects in the pipeline with farmers around the UK looking to incorporate indoor vertical farms with existing anaerobic digestion plants. These projects show that things are moving rapidly in the right direction to bring our food and energy systems back together again.
There are still big questions to answer and challenges ahead when looking at the sustainable future of our combined food and energy systems, but we are on a very exciting journey as part of a new industry and a whole new way to look at food and energy. Joined up thinking is needed and bridges need to be rebuilt - energy and food producers will be working much closer together. To address climate change we know that we need to seriously address our energy system. And to address our energy system in full, we need to include food as a fundamental part of it.
Charlie is co-founder & Chief Executive Officer at LettUs Grow. With a background in renewable energy consultancy & engineering design, Charlie is a proponent of tech for good & passionate about all manners of sustainability, whether in food, energy, resource efficiency or waste valorisation. Charlie is also on the UKUAT (UK Urban AgriTech collective) advisory board.
Vertical Farming Startup Oishii Raises $50m In Series A Funding
“We aim to be the largest strawberry producer in the world, and this capital allows us to bring the best-tasting, healthiest berry to everyone.”
By Sian Yates
03/11/2021
Oishii, a vertical farming startup based in New Jersey, has raised $50 million during a Series A funding round led by Sparx Group’s Mirai Creation Fund II.
The funds will enable Oishii to open vertical strawberry farms in new markets, expand its flagship farm outside of Manhattan, and accelerate its investment in R&D.
“Our mission is to change the way we grow food. We set out to deliver exceptionally delicious and sustainable produce,” said Oishii CEO Hiroki Koga. “We started with the strawberry – a fruit that routinely tops the dirty dozen of most pesticide-riddled crops – as it has long been considered the ‘holy grail’ of vertical farming.”
“We aim to be the largest strawberry producer in the world, and this capital allows us to bring the best-tasting, healthiest berry to everyone. From there, we’ll quickly expand into new fruits and produce,” he added.
Oishii is already known for its innovative farming techniques that have enabled the company to “perfect the strawberry,” while its proprietary and first-of-its-kind pollination method is conducted naturally with bees.
The company’s vertical farms feature zero pesticides and produce ripe fruit all year round, using less water and land than traditional agricultural methods.
“Oishii is the farm of the future,” said Sparx Group president and Group CEO Shuhei Abe. “The cultivation and pollination techniques the company has developed set them well apart from the industry, positioning Oishii to quickly revolutionise agriculture as we know it.”
The company has raised a total of $55 million since its founding in 2016.
A New FEZ "Karakalpak-Agro" Established In Uzbekistan
“….increasing the production of agricultural products, expanding its deep processing and increasing exports, effectively using the production potential of the region…”
Tashkent, Uzbekistan (UzDaily.com) - The Cabinet of Ministers adopted a resolution”On measures to organize the activities of the free economic zone “Karakalpak-Agro”.
In accordance with the decree of the President “On measures for the comprehensive socio-economic development of the Republic of Karakalpakstan in 2020–2023” on an area of 875.4 hectares in Amu Darya, Buzatausky, Kegeili, Konlikul, Kushgirot, Muynak, Nukus , Takhiatash, Turtkul, Khodjeyli, Shumanai and Ellikala districts, the SEZ "Karakalpak-agro" was created.
The functions of managing the activities of the FEZ "Karakalpak-Agro" are assigned to the State Unitary Enterprise "Directorate of the free economic zone" Nukus ".
The main tasks and directions of the SEZ "Karakalpak-Agro":
- attracting direct foreign and domestic investments for organizing modern greenhouses on a cluster basis, including hydroponic ones, as well as organizing the production of structures, equipment and other components for the construction of modern energy-efficient greenhouses;
- increasing the production of agricultural products, expanding its deep processing and increasing exports, effectively using the production potential of the region;
- encouraging the organization of the complete process of agricultural production from seeds to delivery to the market;
- introduction of effective mechanisms for providing greenhouses with seeds and seedlings of high-yielding crops demanded by the market, by creating conditions for organizing nurseries, as well as seed production;
- formation of a modern infrastructure for the provision of logistics services, assistance to agricultural producers in organizing the export of their products;
- widespread introduction of modern resource-saving technologies, the use of alternative sources of thermal energy in the organization of greenhouses;
- creation of research and production centers to assess the compliance of products with international standards.
The Council of Ministers of Karakalpakstan, together with the Ministry of Investments and Foreign Trade, the Chamber of Commerce and Industry and commercial banks, was instructed to develop a targeted program of facilities for the production of structures for greenhouses on the territory of Karakalpak-Agro within two months, with the allocation of vacant non-agricultural land.
Hydroponics Greenhouse Provides Hands-On Learning At Hudson High School
A $20,000 grant was given by The Kiwanis Club of Hudson to support the project, and this money was used to purchase greenhouse equipment.
Yeji Kim
Special to the Hudson Hub-Times
A Jan. 15 tour led by HHS AP Environmental Science teacher Matthew Kearns offered members of The Kiwanis Club of Hudson insight into the hydroponic greenhouse. The club donated a $20,000 grant to help fund the project. Submitted Photo
Project-based learning is a learning model where students work together to engage in real-world questions and problems, and the Hudson High School hydroponics greenhouse centres around this approach to education.
The hydroponics greenhouse started roughly two years ago, and Phillip Herman, Superintendent of the Hudson City School District, and Christina Wooley, HCSD Curriculum Coordinator, are credited with most of the original idea.
Herman first learned about hydroponics gardening and greenhouses from a community member and thought there may be a way to better utilize the HHS greenhouse space to create learning opportunities for students. He began by discussing the idea with teachers, visiting an operating hydroponics greenhouse and exploring areas of the curriculum that could be enhanced.
The first year consisted largely of planning, strategizing and raising money, and this past year was when equipment started to come in and crops began to grow.
A hydroponics greenhouse differs from a traditional greenhouse in that no soil is required. Instead, the plants draw up nutrient-rich water. Less water is used since the water is recycled, and because of the absence of soil, hydroponics greenhouses take up less space — the plants can be stacked vertically. The HHS hydroponics greenhouse also includes a monitoring computer system that measures what is currently in the water and what will be needed.
A $20,000 grant was given by The Kiwanis Club of Hudson to support the project, and this money was used to purchase greenhouse equipment.
CropKing, an Ohio-based hydroponics equipment company, was the supplier for the equipment, seeds and fertilizer, and the firm also aided in setting up the equipment and trained those involved with the greenhouse.
Two other grants, an ADAR grant and a grant from the Hudson Parent-Teacher Organization supplemented the Kiwanis grant money. The greenhouse itself is located off of HHS biology classes and has been there before the hydroponics greenhouse was started.
Students are faced with real-world questions, such as how to sustain crops in regions without sufficient access to water, ways to use the land effectively and properly, impacts on the environment and how to grow sustainably and locally.
Science teacher Matthew Kearns said students have been seeing the benefit of this project, which includes those in the AP Environmental Science class he teaches, special education students who work with Intervention Specialist Kristin Stonestreet and biology classes taught by Ron Wright. Students visit at least once a week to monitor the crops.
Currently, the greenhouse is growing its first round of crops, which includes lettuce, tomatoes and cucumbers.
Stonestreet and Kearns are considering adding cilantro, basil and peppers as well. The diversification would enhance the project-based learning aspect, as students will need to work together to figure out how much additional lighting and heat every crop needs.
The long term goal is to get involved with the community; through connecting with the business department and forming a club, students plan to sell produce from the greenhouse at the Hudson Farmers Market in the summertime and sell to HCSD faculty and staff when school is in session, engaging aspects of science, business and team-work. Several potential products for sale in the future include a salsa kit, tomato sauce and fresh herbs.
Herman notes how this greenhouse works to enhance classroom activity and curriculum.
“Over recent years, we have continued to learn more about and explore opportunities for project-based learning. Project-based learning enables students to learn course content and develop other essential success skills by beginning with a challenging problem or question and conducting a sustained inquiry to explore solutions to the problem and answers to their questions. Together, Christina Wooley, Mr Kearns and Mrs Stonestreet dug in and worked collaboratively to do the hard work to bring an idea to implementation.”
Belgian Bio-Planet Now Sells Vertically-Farmed Coriander Too
For us, the story didn't end with sustainable basil.
Just under a year ago, Bio-Planet first introduced its basil to the market. This came from this Belgian store's self-developed vertical farm. "This cultivation method differs from conventional farming. It requires less water and space and fewer nutrients. That results in herbs with tiny ecological footprints. For us, the story didn't end with sustainable basil. We now have the technique down for coriander. We've been selling this second vertically-farmed herb since 19 February. That's in the Bio-Planet webshop and 31 stores", says a representative from this supermarket chain.
"Consistent, year-round quality"
"The Colruyt Group is the only retailer in Belgium with its a self-developed vertical farm. It grew basil plants for Bio-Planet last year. That was in a closed system, in two rows, one above the other. The group could, therefore, test out its vertical farm for a year. That was in all aspects, from production through logistics to sales. And the results are impressive. In a challenging year, we managed to guarantee a stable production of quality basil plants," says Jan Van Holsbeke, Bio-Planet's Manager.
"The global pandemic ensured it wasn't the easiest test year. We had to scale up our vertical farm. That's was due to the increased sales in our stores. At the same time, this demonstrates the power of indoor multilayer cultivation. We can create the perfect growing conditions, regardless of the weather. That means the herbs have consistent, year-round quality. And we can match production to demand." And demand there certainly was. More people bought fresh basil from Bio-Planet last year than the previous year.
"Coriander with a tiny environmental footprint"
Bio-Planet sees potential in this new farming method. They can grow herbs with a minimal ecological footprint. "Up to 20 times less space is needed the same number of plants. They also need 50% fewer nutrients and 90% less water. The herbs are 100% pure too because no pesticides are used," adds the company spokesperson.
"We integrated the farm into one of the group's distribution centres. So, transportation was cut five-fold. The farm uses purified rainwater that's collected on the DC's roof. It has self-developed, energy-efficient LED lighting and an innovative ventilation system. These make the farm very energy efficient. Moreover, the system runs on 100% green electricity. This is generated by wind turbines and solar panels."
“All these factors make the farm and its herbs very sustainable. That's crucial for Bio-Planet. We want to offer our shoppers sustainable, local, innovative products. We think other herbs and even leafy green vegetables can be vertically-farmed too. This, however, requires more research and investment. Also, the technology has to be further developed," concludes Jan.
CGTN Conversations: Chinese Firms Add Strength To Dubai's Future Tech Ecosystem
CGTN Digital's International Editor Abhishek G. Bhaya spoke with Faisal Al Hawi, the head of Accelerator and Incubators at the Dubai Future Foundation, and Stuart Oda, the founder and CEO of Alesca Life.
Over the decades, the Gulf city of Dubai has emerged as a land of innovation and a place where the future could be felt right now in the present. The city is actively encouraging global collaborations to drive innovation and future technology in the United Arab Emirates and internationally through its Dubai Future Accelerators (DFA) initiative that was launched in 2016 under the aegis of Dubai Future Foundation.
In recent years, many Chinese tech firms and start-ups – which are known for their technological prowess – have partnered with DFA to contribute to their mission of imagining, designing and co-creating solutions for future challenges.
One such successful initiative has come from Beijing-headquartered Alesca Life, an agro-tech company that is creating next-generation urban farming solutions that consume five per cent water and 30 per cent energy vis-à-vis conventional farming.
To get an overview of DFA's future innovation agenda and how Chinese firms are contributing in making that vision a reality, CGTN Digital's International Editor Abhishek G. Bhaya spoke with Faisal Al Hawi, the head of Accelerator and Incubators at the Dubai Future Foundation, and Stuart Oda, the founder and CEO of Alesca Life.
Al Hawi is responsible for creating a myriad of programs that connect different stakeholders, government and private, with innovative startups and companies from around the world to experiment with and making Dubai the testbed for future ideas.
Oda is an investment banker-turned- urban farmer with a passion for innovation and sustainability. He founded Alesca Life in 2013 with an aim to make food production more localized and data-driven.
Edited excerpts:
Bhaya: Faisal, please tell us a bit about the vision of the DFA initiative and what it aims to achieve and also some of the main areas and technologies it has tasted success in the past four years?
Al Hawi: Dubai Future Accelerators is an initiative that was born four years ago under the Dubai Future Foundation. The vision was pretty much straightforward – to put Dubai as a leading city of the world when it comes to technology innovation. Our mission is to turn Dubai into a global testbed for innovations and technologies. The DFA looks around for all the start-ups in the global scene, trying to understand the technology needs, the partner needs, the local ecosystem needs, and trying to bridge the gap between these two players of the market.
We do this in what we call the Area 2071, which is like the heart of our ecosystem in Dubai and we've had tremendous success. Throughout the four years, we've run eight cohorts, the eighth cohort is ongoing as we speak. We've engaged with more than 300 start-ups and over 60 pilot projects were produced out of DFA and more than 150 memoranda of understanding or commercial agreements were signed with different government entities and private sector partners.
Dubai Future Accelerators is positioned in a way that basically bridges the gap between the big players, be it government or private sector, and the start-up innovators from around the world.
Bhaya: How many Chinese firms and start-ups have availed the DFA program so far? Please name some of the major projects the Chinese entities have undertaken in the UAE as part of the DFA initiative.
Al Hawi: We've worked with Chinese companies ever since Cohort 1 back in 2016. So, Alesca Life is one of them. Shellpay, which was a fintech company working with the General Directorate of Immigration in Dubai, was another company. There was another company called Future Trends, working with Dubai Health Authority on medical imaging, and utilizing the technologies of AI and machine learning to optimize the diagnosis of late-stage cancers.
Yitu Technology is another Chinese AI-based company which worked very closely with [UAE's largest telecom service provider] Etisalat on solving some of their telecom related issues. So these are just to name a few companies that worked with us.
We really understand the strength Chinese ecosystem brings to our ecosystem. And I think we complement each other in a lot of areas.
Another example, broader than just Dubai Future Accelerators, is within Area 2071, where SenseTime actually has an office here, and they work very closely with the AI office, in a couple of strategic projects.
So, the partnership is growing stronger and stronger, year after year. And we definitely believe that there are areas specifically in the fourth industrial revolution technologies, blockchain, AI and IoT and the likes that we will definitely materialize more and more outcomes and success moving forward.
Bhaya: Stuart, what is the story behind Alesca Life?
Oda: Seven years ago, I started Alesca Life here in Beijing. The vision of the company is to democratize access to fresh and nutritious food by democratizing the means and the knowledge of production.
And the more research that I was doing, it became very clear that one of the most pressing challenges over the next decades wasn't so much actually related to connectivity, as these things were becoming easier with the proliferation of smartphones and computers, but access to fresh and nutritious food. And so, my team and I wanted to find a way in which we can make this access a lot easier. And wherever it made sense to localize that fresh food production, and wherever food production currently existed to make it more data driven.
So we set on this journey seven years ago, and we currently have our teams and offices across Japan, China, and the United Arab Emirates and we have partnerships across many more countries. We're developing precision farming tools to accomplish, to increase the productivity, the profitability, and the predictability of food production by up to 10 times.
Bhaya: The urban farming technologies including vertical farms and data-driven food production are certainly relevant for an arid region like the Arabian Peninsula. How did your partnership with DFA come about and what has been the journey like in the UAE for Alesca Life?
Oda: In 2016, our team was selected into the DFA program as part of Cohort 1. It was actually our first entry into the Gulf region. We knew that the technology had huge promise and potential in the region, and we wanted to make a serious commitment to the region. The DFA program was kind enough to offer us a spot in Cohort 1.
It has been hugely transformational in two ways. You know, the way in which business is done in the Middle East is very different. And to be able to have an organization like DFA, both providing the meaningful introductions, reducing some of the barriers related to the company's formation, and then also just the credibility that is bestowed on some of the companies that get to go through the program. All three of these things contributed enormously to our success in the region.
Through this program we've also been able to find meaningful strategic partnerships to mitigate some of the challenges related to concentration of supply chain, for example, even being in a place like China, to have manufacturing bases and other places in other countries, is beneficial for us.
So, right after the DFA program, we had an opportunity to localize the manufacturing of our container farm in the Emirates of Ajman in the UAE, so that we can serve our customers and our base in the GCC (Gulf Cooperation Council) and also to showcase our commitment to the region that we're not just there to sell our systems, but that we are there for the long term.
Bhaya: The year 2020 has been a watershed in many ways for the world due to the COVID-19 pandemic, reinforcing our increasing reliance on digital and AI technologies without which we can't imagine a future. How did the global crisis impact the long-term vision of DFA?
Al Hawi: The pandemic has definitely affected everyone. At DFA, we realized that innovation is the way to be resilient for the future, prepared for the future and understanding exactly the problems of today that potentially, and unfortunately, led us into the pandemic. We had just a very short drop-in time in which everybody had to just realign ourselves, and that was around March. But we immediately resumed back in October.
Not just the DFA, I think all the government entities, as well as start-ups, realized how important a role they play in this ecosystem. And Cohort 8, that is currently ongoing and will last until the end of March, is specifically looking at challenges that will basically be more specific around life after COVID.
I'll share a couple of examples. The Dubai Roads and Transport Authority (RTA) is looking into new solutions of shared mobility. We are very much accustomed to the ride-hailing apps and public transport systems. But that has changed forever. So they (RTA) are really being proactive in trying to foresight what new models of public transport and shared mobility will be out there. And we're really excited to see what comes out as solutions in a couple of weeks' time.
Another entity which is really looking at how things might evolve in the health care sector is the Dubai Health Authority. They are focusing on preventive health care measures, solutions and products, but not only from a sense of being preventive or proactive but in a sense of also democratizing access to that device.
Bhaya: Food security is already a global concern and going to be a top challenge in the future. It did aggravate last year due to the supply-chain disruption caused by the pandemic. What are some of the innovative solutions that Alesca Life offers to meet this challenge and has COVID-19 triggered a sense of greater urgency?
Oda: This is a great point. Pre-pandemic, in 2018-19, a lot of the interest and investment from governments, companies and investors was in food tech, which was related to food delivery and meal kits at home. And it was really focused on one thing, which was consumer convenience. What has happened in 2020, with the pandemic and now that we're in 2021, is that the focus has shifted materially from food tech to agtech - agricultural technology, which is focused on resilience. It's about community resilience, as opposed to consumer convenience.
So, one of the solutions, the benefits or the outcomes of the pandemic, was a renewed interest in agtech. And by that, I mean, local food production is in control of your own supply chain for fresh and nutritious food. So, since the pandemic has happened, since the lockdowns have begun, I've probably spoken to individuals and government entities from over 30 countries that are interested in finding ways in which they can secure a minimum supply of local fresh food production in their own countries, in their own communities.
The shift has accelerated towards this localization, towards this decentralized form of food production that can happen almost anywhere. And one of the solutions that we're providing for this is to bundle all of our precision farming tools – our monitoring equipment, our automation systems, our farm management and software tools, and even our latest computer vision AI cameras – and bundle all these products together to create an incredibly capital efficient indoor farm. And this allows both governments, at large scale, and even community, at a smaller scale, to be able to be in control of their local food production needs.
Interviewer and script: Abhishek G Bhaya
Video editors: Meiyi Yan & Wu Chutian
Cover image: Du Chenxin
Infographics: Jia Jieqiong
Director: Mei Yan
Bringing The Future To life In Abu Dhabi
A cluster of shipping containers in a city centre is about the last place you’d expect to find salad growing. Yet for the past year, vertical farming startup Madar Farms has been using this site in Masdar City, Abu Dhabi, to grow leafy green vegetables using 95 per cent less water than traditional agriculture
Amid the deserts of Abu Dhabi, a new wave of entrepreneurs and innovators are sowing the seeds of a more sustainable future.
Image from: Wired
A cluster of shipping containers in a city centre is about the last place you’d expect to find salad growing. Yet for the past year, vertical farming startup Madar Farms has been using this site in Masdar City, Abu Dhabi, to grow leafy green vegetables using 95 per cent less water than traditional agriculture.
Madar Farms is one of a number of agtech startups benefitting from a package of incentives from the Abu Dhabi Investment Office (ADIO) aimed at spurring the development of innovative solutions for sustainable desert farming. The partnership is part of ADIO’s $545 million Innovation Programme dedicated to supporting companies in high-growth areas.
“Abu Dhabi is pressing ahead with our mission to ‘turn the desert green’,” explained H.E. Dr. Tariq Bin Hendi, Director General of ADIO, in November 2020. “We have created an environment where innovative ideas can flourish and the companies we partnered with earlier this year are already propelling the growth of Abu Dhabi’s 24,000 farms.”
The pandemic has made food supply a critical concern across the entire world, combined with the effects of population growth and climate change, which are stretching the capacity of less efficient traditional farming methods. Abu Dhabi’s pioneering efforts to drive agricultural innovation have been gathering pace and look set to produce cutting-edge solutions addressing food security challenges.
Beyond work supporting the application of novel agricultural technologies, Abu Dhabi is also investing in foundational research and development to tackle this growing problem.
In December, the emirate’s recently created Advanced Technology Research Council [ATRC], responsible for defining Abu Dhabi’s R&D strategy and establishing the emirate and the wider UAE as a desired home for advanced technology talent, announced a four-year competition with a $15 million prize for food security research. Launched through ATRC’s project management arm, ASPIRE, in partnership with the XPRIZE Foundation, the award will support the development of environmentally-friendly protein alternatives with the aim to "feed the next billion".
Image from: Madar Farms
Global Challenges, Local Solutions
Food security is far from the only global challenge on the emirate’s R&D menu. In November 2020, the ATRC announced the launch of the Technology Innovation Institute (TII), created to support applied research on the key priorities of quantum research, autonomous robotics, cryptography, advanced materials, digital security, directed energy and secure systems.
“The technologies under development at TII are not randomly selected,” explains the centre’s secretary general Faisal Al Bannai. “This research will complement fields that are of national importance. Quantum technologies and cryptography are crucial for protecting critical infrastructure, for example, while directed energy research has use-cases in healthcare. But beyond this, the technologies and research of TII will have global impact.”
Future research directions will be developed by the ATRC’s ASPIRE pillar, in collaboration with stakeholders from across a diverse range of industry sectors.
“ASPIRE defines the problem, sets milestones, and monitors the progress of the projects,” Al Bannai says. “It will also make impactful decisions related to the selection of research partners and the allocation of funding, to ensure that their R&D priorities align with Abu Dhabi and the UAE's broader development goals.”
Image from: Agritecture
Nurturing Next-Generation Talent
To address these challenges, ATRC’s first initiative is a talent development programme, NexTech, which has begun the recruitment of 125 local researchers, who will work across 31 projects in collaboration with 23 world-leading research centres.
Alongside universities and research institutes from across the US, the UK, Europe and South America, these partners include Abu Dhabi’s own Khalifa University, and Mohamed bin Zayed University of Artificial Intelligence, the world’s first graduate-level institute focused on artificial intelligence.
“Our aim is to up skill the researchers by allowing them to work across various disciplines in collaboration with world-renowned experts,” Al Bannai says.
Beyond academic collaborators, TII is also working with a number of industry partners, such as hyperloop technology company, Virgin Hyperloop. Such industry collaborations, Al Bannai points out, are essential to ensuring that TII research directly tackles relevant problems and has a smooth path to commercial impact in order to fuel job creation across the UAE.
“By engaging with top global talent, universities and research institutions and industry players, TII connects an intellectual community,” he says. “This reinforces Abu Dhabi and the UAE’s status as a global hub for innovation and contributes to the broader development of the knowledge-based economy.”
Forget Politics, Danny Ayalon Wants to Effect Change on The Ground
Having transitioned from politics to agriculture, Danny Ayalon shares how vertical farming, which provides fresh fruits and vegetables all year round, and lab-grown meat can rehabilitate the environment and dramatically reduce household expenditures
Having transitioned from politics to agriculture, Danny Ayalon shares how vertical farming, which provides fresh fruits and vegetables all year round, and lab-grown meat can rehabilitate the environment and dramatically reduce household expenditures.
Image from: Yehoshua Yosef
The coronavirus pandemic has drawn attention to humankind's carbon footprint. More than ever before we ask ourselves, how can we become more sustainable? Can we prevent pollution? How can we minimize waste? What about lowering emission levels? Will there be enough food for everyone in the future?
Danny Ayalon, a former ambassador and foreign policy adviser to three prime ministers-turned entrepreneur, believes that the answer to many of the world's problems lies in modern agriculture.
Having transitioned from politics to agriculture, he works with Future Crops, an Amsterdam-based company focused on vertical farming – the practice of growing crops in vertically stacked layers that often incorporates controlled-environment agriculture, which aims to optimize plant growth – and MeaTech, a company that creates lab-grown meat.
"Ever since the coronavirus came into our lives, we realized that man is not in charge of the universe," Ayalon told Israel Hayom.
"Our control over the forces of nature, of Earth, of our future is more limited than we had thought. And when we are no longer in charge of the world, only three things guarantee our lives here: food, water, and energy security. Food, water, and energy are three resources that can be depleted and therefore literally cast a cloud on our world.
"Experts have come to a conclusion that one of the most important fields to focus on is agriculture, and indeed we are currently witnessing the most significant agricultural revolution ever since the first agricultural revolution that took place about 10,00 years ago."
Q: Back then, in the first agricultural revolution, there was a need for a lot of land.
"But today we have technology. The name of the game is to reach maximum output with minimum input in the smallest space possible. This is the holy grail of the new revolution. And that is how technology enters the picture. To grow fruits, vegetables and spices today requires lots of space. The technology we developed at Future Crops allows us to minimize the space, increase production and redefine the food supply chain."
Q: How exactly?
"We have a nine-story hangar in Amsterdam to grow crops like coriander, basil, dill, and parsley. It has LED lights, and each plant gets exactly the amount of light it needs. We are the plant psychologists, [we] listen to all its needs and do everything to make sure the plant grows in the most optimal way.
Image from: Future Crops
"If it lacks something, it immediately receives water. Everything is done without a human's touch. We use algorithms and big data in collaboration with world-class researchers from the Weizmann Institute. It is essentially the application of vertical farming, growing various crops in vertically stacked layers, in enclosed structures, on soil platforms.
"For example, if it takes a month to grow lettuce in an open field, in a vertical farm, it takes two weeks, half that time. There's also a significant reduction in water consumption, and no pesticides or sprays are used at all. Also, the produce is available in all seasons; it does not depend on the temperature. Whoever likes mangos and strawberries, for example, will be able to enjoy them all year round."
Q: So if produce is grown faster and within a smaller space, is it going to cost less?
"The prices might be a bit higher today because this technology and the various infrastructures require an economic return of the initial investment in them. With time, the process will become more efficient, and the investments will be repaid, so in the end, the prices that the consumer will need to pay will be lower than today.
"Let me give you a simple example. Do you know how much a kilogram [2.2 pounds] of basil costs in Europe today? €90 ($108). In Israel, the price is €20 ($24). In the [United Arab] Emirates, where almost everything connected to food is imported – the prices go accordingly as well. Once you have more innovative vertical farms, consumers will pay much less."
Q: Should we expect vertical farm skyscrapers to pop up all over?
"I'm not sure that we will need skyscrapers, as with time the facilities will become smaller. Imagine that in every supermarket there will be a vertical produce stand with all the vegetables and spices, and later also fruits which you pick on the spot, without the need to move the produce from place to place. That is why vertical farming is also called urban farming, meaning there is no need for fields; you can grow [produce] on the rooftop. No resource limits you."
Q: What about the taste?
"Ours is a fresher and tastier product. I ought to give credit to the Weizmann Institute here. The challenge for them wasn't the quality of the vitamins but the taste, and they managed to achieve a great taste. In the Netherlands, Future Crops already sells parsley, and it tastes outstanding."
Q: Regular parsley lasts for about two weeks in the fridge. What about Future Crops parsley?
"Our parsley has a two-month shelf life, and it does not oxidize within a week or two."
Q: If every country will be self-reliant in terms of agriculture, do you think it will affect relations between countries?
"Economies will become self-sufficient eventually, which will ensure security with far fewer conflicts. There is less and less water in the Middle East, which might someday lead to tensions. We hope technology will reduce the tensions between countries, and territory will be less critical. Our world faces crucial challenges. Food and water security have the potential to either divide or bring us together and ensure our long-term existence.
"By the way, in every developed Western country, like the United States, Australia, and also in Europe, issues of food security, climate, and greenhouse emissions are on the top of the political agenda. We are not talking about it [in Israel,] as security and foreign affairs take the central stage, but Israel does have a lot to offer here."
Q: Do we have the potential to become the Silicon Valley of advanced agriculture?
"Israel takes tremendous pride in its actions that help save the world. Will we become the Silicon Valley of agriculture? There is no doubt about it. We can already see foreign investors who come here to look for opportunities, including my business partner Lior Maimon, co-founder and CEO of Silver Road Capital, and Steven Levin, one of the leaders of the US food industry. Silver Road Capital is a holdings and financial advisory firm with a broad portfolio of high-tech companies, as well as agricultural and food technologies, and represents international companies and funds in investments in Israel and the world.
"Future Crops's goal is to raise 35 million shekels on the Israeli stock exchange to invest in enlarging the existing facilities and [set up] other production lines and facilities in Europe and other continents. We cooperate with the Albert Heijn supermarket chain [in the Netherlands] and a leading food chain in France."
Q: Vertical farming is estimated at $3 billion. Google and Amazon have invested hundreds of millions in the field as well. What is their goal?
"A simple answer would be profit. A longer answer is that they [large corporations] understand that food has the highest demand. People cannot live without food and water, and Google and Amazon understand that potential."
Q: US President Joe Biden took office with the largest team of climate experts ever. That ought to give the field momentum.
"Green energy and vertical farming will get a considerable boost. Climate change and green energy are well-rooted in the Democratic Party's ideology.
"It is also possible that large companies entered the agriculture fields precisely because of the Biden administration; they are worried about their future. They are afraid of a certain dismantling, so focusing on secondary fields is part of a security scenario for them."
Q: Biden also wants to address greenhouse emissions, which are the result of the food production industry, mainly meat. Are Amazon and Google's food counterparts - McDonald's and Burger King - looking for meat substitutes?
"Firstly, cultured [lab-grown] meat does not require grazing land, cows do not need to be fed, and so much land can instead be turned into forests that support the environment. This is an optimistic industry that leaves us with a better world.
"As for the meat alternatives market, there are two major companies in the US that produce plant-based protein, Beyond Meat, and Impossible Foods.
"Impossible's burgers are already at Burger King, McDonald's has partnered up with Beyond Meat, and last November, it announced that it would create its own plant-based burger.
"The problem is that pea protein [used in plant-based burgers,] does not have all the amino acids that animal protein contains. Also, they need to add additives to supplement for taste and smell.
"At MeaTech, where I'm a director, we are on our way to producing animal meat, cultured meat, real stakes: we take a cow's own stem cell from which meat can be produced in almost unlimited quantities. We also use 3D digital printing technology. And we also created a thin layer of meat, carpaccio. Needless to say, no cow was harmed in the process."
Image from: MeaTech
Q: Why do you use 3D printers?
"Because there is no need for a human being's involvement. It is relevant now during the coronavirus pandemic when the food supply chain is disrupted. With such printers, your production can continue without delays, whenever you want.
Also, it is theoretically possible to provide food for space flights. Astronauts who go out into space will not have to take food with them; rather, they will be able to produce it on the spot.
"People understand that crises like the coronavirus can disrupt the supply chain and are looking for alternatives. A 3D printer allows restaurants, supermarkets, and butcher shops to have meat without relying on the supply chain."
Q: The death rate from obesity is higher than the death rate from hunger. How will cultured meat affect these statistics?
"It is possible to create meat with much less fat and more protein in each portion and add various nutrients in the future to strengthen the immune system and prevent disease. This, of course, requires a lot of research and approvals. Just like there's talk about customized medicine, so it will be possible to produce food that suits a person's genetic structure and body in the most optimal way."
Q: Will the cost of this meat also be optimal?
"They will cost more in the beginning compared to regular meat because there are initial costs that have to be repaid. When it becomes a mass production, prices will drop over time."
Q: With your vast experience in politics, what do you think of Israeli politics these days? Do you ever consider a political comeback?
"No election campaign goes by without someone making me an offer [to return to politics] but I'm not interested. Unfortunately, the Israeli government, and all governments in the Western world, have not been able to run their countries properly in recent years.
"For example, more of the government's national taks are transitioning to the private market or the third sector. We see that associations [are the ones] who take care of the needy, establish settlements in the Negev and in the Galilee, bring immigrants to Israel and provide Israelis with information. All these things should be done by the government.
"The Israeli government lacks vision, ideologies, every matter is personal and is charged with negative sentiments. If I do return one day, it will only happen after we change the government system which will take its power from small [political] parties.
"In my opinion, we need to transition to a regional choice, by district. This will result in higher quality politicians. How so? Because whoever wants to be elected will need to run and convince the people who live in his area and district, and they are the ones who know his activities best. Also, closed primaries should be avoided because they make all kinds of deals possible. That needs to change."
Vertical Farming: Ugandan Company Develops Solution for Urban Agriculture
We speak to Lilian Nakigozi, founder of Women Smiles Uganda, a company that manufactures and sells vertical farms used to grow crops in areas where there is limited space
We speak to Lilian Nakigozi, founder of Women Smiles Uganda, a company that manufactures and sells vertical farms used to grow crops in areas where there is limited space.
Image from: How We Made It in Africa
1. How Did You Come Up with the Idea to Start Women Smiles Uganda?
Women Smiles Uganda is a social enterprise formed out of passion and personal experience. I grew up with a single mother and eight siblings in Katanga, one of the biggest slums in Kampala, Uganda. I experienced hunger and poverty where we lived. There was no land for us to grow crops and we didn’t have money to buy food. Life was hard; we would often go to sleep on empty stomachs and our baby sister starved to death.
Growing up like that, I pledged to use my knowledge and skills to come up with an idea that could solve hunger and, at the same time, improve people’s livelihoods, particularly women and young girls living in the urban slums. In 2017, while studying business at Makerere University, I had the idea of developing a vertical farm. This came amid so many challenges: a lack of finance and moral support. I would use the money provided to me for lunch as a government student to save for the initial capital of my venture.
I managed to accumulate $300 and used this to buy materials to manufacture the first 20 vertical farms. I gave these to 20 families and, in 2018, we fully started operations in different urban slums.
2. Tell Us About Your Vertical Farms and How They Work.
Women Smiles vertical farms are made out of wood and recycled plastic materials. Each unit is capable of growing up to 200 plants. The product also has an internal bearing system which turns 360° to guarantee optimal use of the sunlight and is fitted with an inbuilt drip irrigation system and greenhouse material to address any agro-climatic challenges.
The farms can be positioned on a rooftop, veranda, walkway, office building or a desk. This allows the growth of crops throughout the year, season after season, unaffected by climatic changes like drought.
In addition, we train our customers on how to make compost manure using vermicomposting and also provide them with a market for their fresh produce.
Image from: How We Made It in Africa
3. Explain Your Revenue Model.
Women Smiles Uganda generates revenue by selling affordable, reliable and modern vertical farms at $35, making a profit margin of $10 on each unit. The women groups are recruited into our training schemes and we teach them how to use vertical farming to grow crops and make compost manure by vermicomposting. Women groups become our outgrowers of fruits and vegetables. We buy the fresh produce from our outgrowers and resell to restaurants, schools and hotels.
We also make money through partnering with NGOs and other small private organisations to provide training in urban farming concepts to the beneficiaries of their projects.
4. What Are Some of the Major Challenges of Running This Business?
The major challenge we face is limited funds by the smallholder farmers to purchase the vertical farms. However, we mitigate this by putting some of them into our outgrower scheme which helps them to generate income from the fresh produce we buy. We have also linked some of them to financial institutions to access finance.
5. How Do You Generate Sales?
We reach our customers directly via our marketing team which moves door to door, identifying organised women groups and educating them about the benefits of vertical farming for improved food security. Most of our customers are low-income earners and very few of them have access to the internet.
However, we do also make use of social media platforms like Facebook to reach out to our customers, especially the youth.
In addition, we organise talk shows and community gatherings with the assistance of local leaders with whom we work hand in hand to provide educational and inspirational materials to people, teaching them about smart agriculture techniques.
6. Who Are Your Main Competitors?
Just like any business, we have got competitors; our major competitors include Camp Green and Spark Agro-Initiatives.
Image from: The Conversation
7. What Mistakes Have You Made in Business and What Did You Learn From Them?
As a victim of hunger and poverty, my dream was for every family in slums to have a vertical farm. I ended up giving some vertical farms on credit. Unfortunately, most of them failed to pay and we ended up with huge losses.
This taught me to shift the risk of payment default to a third party. Every customer who may need our farms on credit is now linked to our partner micro-finance bank. By doing this, it is the responsibility of the bank to recover the funds from our customers and it has worked well.
8. Apart from This Industry, Name an Untapped Business Opportunity in Uganda.
Manufacturing of cooler sheds for the storage of perishable agricultural produce is one untapped opportunity. Currently, Ugandan smallholder farmers lose up to 40% of their fresh produce because of a lack of reliable cold storage systems.
Providing a cheap and reliable 24/7 cold storage system would dramatically reduce post-harvest losses for these farmers.
Columbia Vertical Farm Uses Technology To Cut Plastic Pollution And Boost Sustainability
The new packaging comes at no extra cost to the customer and will be cheaper in the long-run for Vertical Roots
Vertical Roots is the largest hydroponic container farm in the country. They grow and package lettuce varieties and have recently implemented a packaging process that reduces plastic with a resealable film. TRACY GLANTZ TGLANTZ@THESTATE.COM
With the use of agricultural technology, Vertical Roots farm in West Columbia created a packaging system for its leafy greens that cut down the company’s plastic usage by 30% and extends the shelf life of the lettuce.
In 2015, high school friends Andrew Hare and Matt Daniels created the idea for Vertical Roots, now the largest hydroponic container farm in the country. Hare is the general manager of the company and Daniels acts as the chief horticulturist.
The first Vertical Roots opened in Charleston and expanded with its second farm site in West Columbia in 2019. Vertical Roots parent company, AmplifiedAg, manufactures the container farms and farm technology of which Vertical Roots operates.
The farms are part of a growing industry called controlled environmental agriculture (CEA) that uses technology to ramp up nutrient-rich food production year around.
Hydroponics helps the farm uses 98% less water than traditional farming, according to Hare. Their technology creates an indoor environment to grow lettuce on the East Coast. Most lettuce in the U.S. comes from California and Arizona, where temperatures do not fluctuate much throughout the year, travelling 2,000 miles from farm to table. Vertical Roots offers a solution for local lettuce.
“Our mission is to revolutionize the way communities grow, distribute and consume food,” said Hare. As populations grow, Hare said the ability to produce enough food is a global concern.
VERTICAL ROOTS AGRICULTURAL INNOVATION
As a company committed to sustainability, Vertical Roots had to address its plastic usage and the consumer demand for environmentally friendly products.
“I think everyone can agree that the amount of plastic that’s consumed and used globally is a bit of a problem,” said Hare.
If Vertical Roots were to completely opt-out of using plastics, as much as 40% of the lettuce would be damaged in transportation to the retailers, Hare said. So the company decided to still use plastic containers in order to cut out food waste, but it changed the amount and type of plastic used.
By replacing the conventional “clamshell” plastic lids that you see on a container of lettuce at the grocery store, Vertical Roots cut down more than 30% of plastic usage by creating a resealable film lid. The new packaging comes at no extra cost to the customer and will be cheaper in the long-run for Vertical Roots, according to Hare.
The farm also uses recycled plastic that can also be recycled again after use. Tiny perforations in the film lid of the packaging allow air to leave the lettuce container and extends the product’s freshness, making Vertical Roots lettuce last around 14 days on the shelf.
“We tested respiration and condensation with each lettuce variety, and ultimately found that we could extend the freshness and shelf life of our salad mixes even more,” said Hare.
Vertical Roots, at the S.C. Farmer’s Market, is the largest hydroponic container farm in the country. They grow and package lettuce varieties. Tracy Glantz TGLANTZ@THESTATE.COM
GROWTH IN THE AGRICULTURAL TECHNOLOGY INDUSTRY
In the first three quarters of 2020, a record $754 million of venture capital was invested in the vertical farming industry, according to PitchBook data. This was a 34% increase from the entire previous year, Bloomberg reported in a January article.
A 2019 report from Global Market Insights showed that the vertical farming market size, or the number of potential customers or unit sales, surpassed $3 billion in 2018 and said it, “will exhibit a massive compound annual growth rate (CAGR) of over 27% from 2019 to 2026.”
In vertical farms, crops are harvested on several vertical layers indoors, where farmers can grow year-round by controlling light, temperature, water and other factors, according to the U.S. Department of Agriculture.
Vertical agriculture is also seen as a growing industry because it “could help increase food production and expand agricultural operations as the world’s population is projected to exceed 9 billion by 2050,” according to the USDA.
However, some are skeptical about the future of vertical farming for several reasons. The farms use LED light bulbs to grow crops, which require a lot of energy and money to operate.
Also, the farms mostly produce greens, which are low in calories because they take less water and light. The new farming technology is marketed as a way to combat world hunger, but in poorer countries, low-calorie greens are not as beneficial, according to Bloomberg.
THE FUTURE OF VERTICAL ROOTS
Despite a tough year due to COVID-19, Vertical Roots will open two more indoor, container farms in Georgia and Florida in 2021.
The company lost revenue from foodservice customers like restaurants, schools and universities during the pandemic, said Hare.
Those food service customers accounted for about half of Vertical Roots’ business, Hare said. Grocery store business stayed steady and even grew during the pandemic. As schools and restaurants are slowly reopening, Vertical Roots is gaining business back.
The West Columbia farm location produces about $1.5 million pounds of produce per year, said Hare. Vertical Roots lettuce is in 1,200 different grocery stores in 11 states, including Lowes Foods stores, Publix, Harris Teeter and Whole Foods Market chains.
Hare said the company is constantly working on sustainable initiatives, including figuring out a way to reduce light energy consumption by 20-25%, thinking about compostable packaging systems and finding ways to use less water at the farms.
In the future, Vertical Roots hopes to offer a larger variety of produce. The team is experimenting with growing foods like tomatoes, cucumbers, peppers, herbs and mushrooms to see if they could be viable products.
At 25,000 square feet, the world's first indoor vertical farm is also one of the largest farms. Located 120 miles south of Seoul, South Korea, fruits and vegetables grow without soil, bathed in light from pink LEDs. BY META VIERS
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Vertical Roots, at the S.C. Farmer’s Market, is the largest hydroponic container farm in the country. They grow and package lettuce varieties. TRACY GLANTZ TGLANTZ@THESTATE.COM
PODCAST: Season 2 Episode 22
In this episode, Harry and Kyle discuss the varying facets of ponics, from deep water culture and NFTs to vertical farming and aquaponics
Join Harry Duran, host of Vertical Farming Podcast, as he welcomes to the show founder of Ponic Jobs and co-host of the CropTalk Podcast, Kyle Barnett. Kyle is currently serving as Account Manager in the horticulture division at WestRock, focusing on helping growers create superior packaging, labels, and merchandising solutions.
In this episode, Harry and Kyle discuss the varying facets of ponics, from deep water culture and NFTs to vertical farming and aquaponics. They talk about the vital role distribution plays in the AgTech industry, what inspired Kyle to create the Ponic Jobs website, as well as his collaboration with CropTalk Media. His podcast segment, Kyle Talks AgTech, focuses on CEA, vertical farms, greenhouse technology as well as industry leaders.
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Leamington Greenhouse Growers Struggle With Venting With Light Pollution Limits
Venting limits are imposed by local municipalities to address light pollution concerns
A recent Horti Daily article discussed the problems with limited venting experienced by many greenhouses in the Leamington, Ontario area. Venting limits are imposed by local municipalities to address light pollution concerns. Venting is a strategy used by greenhouses to remove warm air from the greenhouse as temperatures rise, especially in the warmer months. Venting limits make it difficult for greenhouses to remove warm air and maintain optimal temperatures in greenhouses. An unintended consequence with artificial lights is that opening greenhouse side walls and roofs allows light escaping, causing light pollution to the neighboring area outside.
Greenhouse growers are constantly juggling and adjusting growth parameters like light, temperature, and CO2 to create an optimal growth environment for their plants. Choosing to vent or not is always a double-edged sword. On the one hand, venting is an inexpensive way to manage air exchange in order to keep temperatures cooler in the warm months from spring through fall. On the other hand, venting with artificial lights on results in light pollution. Venting also makes it impractical to supplement the greenhouse grow area with CO2 by atmospheric enrichment (also known as CO2 gassing) since the CO2 gas quickly escapes outside.
The problem with venting is not usually an issue for Leamington greenhouses in the colder months when the vents are closed, thereby enabling CO2 gassing as the facility is sealed and reduces artificial light pollution. CO2 gas levels in the grow rooms can be maintained at 1200 parts per million (ppm) to optimize growth. However, in the warmer months when venting occurs, it is very difficult to maintain 400 ppm (the level of natural CO2 in the air) even if CO2 gas is pumped into the grow area since nearly all of it escapes outside during venting.
CO2 Delivery Solutions™ can help Leamington greenhouse growers solve the CO2 supplementing problem when venting.
CO2 Delivery Solutions™ enables Leamington greenhouses to provide their plants with added CO2 which enhances growth and yields. This capability is achieved by misting an aqueous CO2 solution directly on to the plants, with or without venting. This technology allows CO2 to be controlled independently, rather than its delivery being co-dependent on the control of other growth parameters like light and temperature. This enhances a grower’s ability to optimize environments in a simpler and more effective manner. While CO2 Delivery Solutions™ cannot solve the artificial light pollution problem when Leamington greenhouses need to vent, it can certainly solve the lack of optimal CO2 problem during those months and help tip the balance towards more optimal yields year-round.
Visit co2delivery.ca for more information.
Nature Fresh Farms Advances In Sustainable Transportation Through The SmartWay Program
Nature Fresh Farms pledges to reduce freight transportation-related emissions by becoming a member of SmartWay
Leamington, ON (January 15, 2020) – Nature Fresh Farms pledges to reduce freight transportation-related emissions by becoming a member of SmartWay.
Over the past year, Nature Fresh Farms joined the SmartWay Transport Partnership to further its sustainable development and continue to lead in its environmental initiatives. SmartWay is administered in Canada by NRCan and is free to those interested in becoming members, aiming to help both shippers and carriers move goods efficiently, by maximizing load capacity and keeping fuel costs and environmental impact at a minimum.
SmartWay is an internationally recognized program that encourages its members to be more aware of their carbon footprint by helping them track fuel consumption and improve their overall performance. Through their membership, Nature Fresh Farms can use the program to measure the environmental impact of their freight supply and use recommendations from SmartWay to improve and modify their transportation and operation strategies. With Nature Fresh Farms’ commitment to reducing emissions, their goal is to have at least 80% of their carrier base SmartWay certified by 2023.
“It has always been important for Nature Fresh Farms to recognize and understand our carbon footprint in every area of our operations,” shared Leigh Ann Breault, Director of Logistics. “Making the necessary improvements to our freight supply chain, using the recommendations provided from SmartWay, will only help reinforce our position as an industry leader in sustainability.”
With environmental performance becoming increasingly important as a business metric, more companies are becoming aware of the benefits of being a part of programs such as this. Having over 3,600 North American companies signed on to the SmartWay partnership, Nature Fresh Farms membership demonstrates their continued environmental leadership and corporate responsibility.
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Continuously expanding, Nature Fresh Farms has become one of the largest independent, vertically integrated greenhouse vegetable farms in North America. As a year-round grower with farms in Leamington, ON, Delta, OH, and Mexico, and with their Distribution Centers established in Leamington, Delta, and Laredo, TX, Nature Fresh Farms prides itself on consistently delivering exceptional flavor and quality to key retailers throughout North America, while continuing to innovate and introduce more viable and sustainable growing and packaging solutions.
SOURCE: Nature Fresh Farms | info@naturefresh.ca T: 519 326 1111 | www.naturefresh.ca
U.S. Department of Agriculture Secretary Sonny Perdue Visits Kalera
On Monday, June 8th, technology-driven vertical farming company Kalera welcomed Secretary of Agriculture Sonny Perdue to its Orlando facility
Perdue Visits Kalera For a Behind-The-Scenes Tour With Top Kalera Executives
June 09, 2020, | Source: Kaleraphoto-release
Secretary of Agriculture Sonny Perdue (l) stands next to Kalera CEO Daniel Malechuk (r) during a visit to the vertical farm's Orlando facility.
ORLANDO, Fla., June 09, 2020 (GLOBE NEWSWIRE) -- On Monday, June 8th, technology-driven vertical farming company Kalera welcomed Secretary of Agriculture Sonny Perdue to its Orlando facility. Secretary Perdue was greeted by Kalera’s top executives, including CEO Daniel Malechuk and CTO Cristian Toma, who, along with other staff members, escorted him on a private tour of the facility’s proprietary technology, providing a glimpse at the future of farming. Key takeaways included how Kalera:
eliminates the use of chemicals and removes exposure to pathogens through cleanroom technology.
is able to supply an abundance of produce locally, eliminating the need to travel long distances when shipping perishable products.
ensures the highest quality and freshness by delivering product to customers within hours of harvest rather than days or weeks
Is able to reduce water consumption by 95% compared to field farming.
During the tour, Perdue was able to sample the lettuce Kalera grows at the Orlando facility. Some of his positive reflections about the tour can be read in this Fox 35 Orlando news piece, “USDA Secretary visits Central Florida hydroponic farm, calls it a 'very innovative food production system'.”
Kalera recently announced its new Atlanta facility, which will open in early 2021. While Kalera’s Orlando farm, which Perdue visited on Monday, is currently the highest production volume vertical farm in the Southeast, the new Atlanta facility will be more than double the size and generate approximately 75 jobs for the local community. As was the case in Orlando, Kalera is able to quickly open its newest growing facility in Atlanta as a result of a streamlined design and construction process, further illustrating its ability to rapidly scale and expand its vertical farms.
After the tour, Daniel Malechuk, CEO of Kalera, addressed Secretary Perdue in front of assembled employees and press, saying, “Thank you very much on behalf of the Kalera staff for your time, and visiting us to discuss the future of agriculture, which is clean, healthy, sustainable, local and fresh. We look forward to helping the US stay on the cutting edge of agricultural innovation and feeding a hungry world with fewer natural resources.”
In addition to its R&D center, Kalera opened its first commercial vertical farm, the HyCube growing center, on the premises of the Orlando World Center Marriott to bring fresh, local produce to the hotel’s visitors and customers. In March this year, it announced the opening of its second facility in Orlando. The Atlanta facility is the third farm in Kalera’s portfolio, and will soon be joined by more in the United States. Kalera is currently sold in over 160 Publix stores.
About Kalera
Kalera is a technology-driven vertical farming company with unique growing methods combining optimized nutrients and light recipes, precise environmental controls, and cleanroom standards to produce safe, highly nutritious, pesticide-free, non-GMO vegetables with consistently high quality and longer shelf life year-round. The company’s high-yield, automated, data-driven hydroponic production facilities have been designed for rapid rollout with industry-leading payback times to grow vegetables faster, cleaner, at a lower cost, and with less environmental impact.
Kalera’s shares are traded on NOTC, a marketplace for unlisted shares managed by NOTC AS, which is owned 100% by Oslo Børs ASA, the Oslo Stock Exchange.
Further information about the company may be found at www.kalera.com and www.kalera.com/investor along with an introductory Kalera film: www.youtube.com/watch?v=2Crpph9w0hE
Kalera Contact:
Daniel Malechuk, CEO
Phone: +1 407 574 2382
Email: dmalechuk@kalera.com
IDTechEx: How to Succeed in Vertical Farming
Vertical farming is an emerging technique within agriculture that involves growing crops indoors under controlled environmental conditions
NEWS PROVIDED BY IDTechEx
May 26, 2020
BOSTON, May 26, 2020,/PRNewswire/ -- Vertical farming is an emerging technique within agriculture that involves growing crops indoors under controlled environmental conditions. By carefully tailoring the environment to the exact requirements of the crop, such as through using LED lighting to produce the exact light spectrum needed for optimal photosynthesis, it is possible to obtain yields hundreds of times higher than traditional agriculture.
Vertical farms can be set up almost anywhere, making it possible to grow crops in the middle of populous urban centers, meaning that it is possible for crops to reach consumers within minutes of harvest. This contrasts with traditional agriculture, where fresh produce can take weeks to reach consumers, losing the freshness, and increasing contamination risk along the way. The recent IDTechEx report, "Vertical Farming: 2020-2030" explores the technologies and markets around the fast-growing vertical farming industry.
Vertical farms use artificial lighting and carefully controlled climates to grow crops at far higher yields than conventional agriculture. Source: Intelligent Growth Solutions (PRNewsfoto/IDTechEx)
Vertical farming has been the subject of a lot of hype in recent years, with supporters claiming it could revolutionize food production. Industry advocates, such as Columbia University Professor Dickson Despommier, have presented visions of a future world where fresh food is grown inside skyscrapers to feed giant, high-tech metropolises (for further visions of the cities of the future, see the IDTechEx report, "Smart City Opportunities: Infrastructure, Systems, Materials 2019-2029"). Investors are also feeling the hype, with vertical farming start-ups raising over a billion dollars in investment in the last five years alone.
However, despite this optimism, the industry does face some major challenges and the sector has more than its fair share of bankruptcies. PodPonics, once the most well-funded vertical farming company in the world, and FarmedHere, which once operated what remains the largest vertical farm ever built, both went bankrupt. David Rosenberg, Chief Executive of New Jersey-based vertical farming outfit AeroFarms, recently said he wouldn't be surprised if 90% of the players in the industry went out of business within the next three years.
Broadly, many vertical farms struggle for the same reasons. As well as costing a lot of money to set up, vertical farms can be very expensive to run, largely because they require continuously running artificial lighting and climate controls. This is compounded by high labor costs and logistical difficulties that often get more difficult as the vertical farm gets larger. This all makes it very difficult to compete on price with produce grown on conventional farms, which typically have razor-thin profit margins.
Because of these challenges, vertical farmers generally only grow crops where the whole of the plant can be consumed, in order to maximize space efficiency and avoid wasting energy on growing inedible stems and leaves. Therefore, almost all vertical farmers are restricted to growing herbs and leafy greens. These are still a large market but fall somewhere short of the lofty claims made by some supporters of the industry.
It is certainly possible to run a successful vertical farming business, as fast-growing players such as Bowery Farming and InFarm will attest to, however, it requires a carefully planned out strategy and consideration of all the variables and trade-offs involved in vertical farming, in addition to a fair amount of investor capital.
The keys to success in vertical farming are outlined in the recent IDTechEx report, "Vertical Farming: 2020-2030". The report discusses several factors that can contribute to the success or failure of a vertical farm, including:
Whether or not to automate. Automation can significantly reduce labor costs while streamlining the logistical processes. However, investing in advanced automation equipment can lead to extremely high start-up costs.
Choice of crops. Should vertical farming try to branch out beyond leafy greens, or should it corner the market it has? What about higher-value crops inaccessible to conventional agriculture?
How large is too large? Larger centralized facilities could lead to economies of scale but could also face spiraling logistical difficulties. However, smaller localized facilities may face much higher start-up costs relative to the output capacity.
The importance of location: is a city center location really the best place to set up a vertical farm?
The need for experience in the food industry. Crops are living organisms and are not always predictable. Despite this, there is a relative lack of food and agriculture experience in the vertical farming sector.
For more information on this report, please visit www.IDTechEx.com/vertfarm or for the full portfolio of Food & AgTech research available from IDTechEx please visit www.IDTechEx.com/research/agtech.
IDTechEx guides your strategic business decisions through its Research, Consultancy and Event products, helping you profit from emerging technologies. For more information on IDTechEx Research and Consultancy, contact research@IDTechEx.com or visit www.IDTechEx.com.
Media Contact:
Jessica Abineri
Marketing Coordinator
press@IDTechEx.com
+44-(0)-1223-812300
SOURCE IDTechEx
Indoor Composters For A More Sustainable Life
If you’re new to the compost game, getting a bin is the perfect first step. Here are some of our favorite indoor composters available today
Curb Your Carbon Footprint Conveniently
Composting is an easy way to reduce the amount of waste produced by your household, sending organic matter like food scraps back into the soil. While many people compost outside in compost piles, it is possible to compost even if your home doesn’t have a garden or outdoor area. Indoor composters are compact and low-odor containers for food scraps. Having one in the house is important for people that have weekly compost pickups or drop offs. Indoor composters also make life easier for people with outdoor compost piles, decreasing the frequency with which they have to step outside to dump food scraps. If you’re new to the compost game, getting a bin is the perfect first step. Here are some of our favorite indoor composters available today.
This five-gallon compost bin can live on a countertop and comes with liquid Bokashi, which can ferment and break down your food waste into soil and compost tea. Compost tea is a liquid that fertilizes plants and can be dispensed from the nozzle at the bottom of this SCD bin. Bokashi composting is especially great for the indoors, because it minimizes odor. With a tight lid and carrying handle, you can easily transport this bin to your outdoor compost pile or compost drop-off site.
This is an awesome choice for plant-lovers and gardeners, as it can turn your compost into soil amendment in just three hours. It is also space-efficient and can reduce the volume of your food waste by 90 percent. It is a tightly-sealed and odor-free container, using heat and carbon filtration to break down food, including bones, pits and shells. The machine will let you know when the filter needs to be replaced.
This 2.4 gallon polyethylene compost bin is a convenient size for any kitchen. It comes with a year’s worth of carbon filters, which help combat odor. You can safely put this in the dishwasher after it is emptied.
If you aren’t producing large amounts of food waste, something smaller and more aesthetic-forward could be the ticket. This 1-gallon compost bin is a small pail that will look stylish in an urban kitchen and get the job done. You can remove the plastic container from the pail to dump your compost and throw in the dishwasher. Its lid is ventilated for moisture and temperature control, but the activated charcoal filters help prevent odor from escaping and stinking up your kitchen.
By PopSci Commerc Team | Popular Science | May 4, 2020
The Case Against More Ethanol - It's Simply Bad for Environment
The revisionist effort to increase the percentage of ethanol blended with U.S. gasoline continues to ignore the major environmental impacts of growing corn for fuel and how it inevitably leads to higher prices for this staple food crop
Ethanol, which seemed like a good idea when huge federal subsidies and mandates were put in place a decade ago, now seems like a very poor idea indeed. Yet despite years of bad ethanol reviews, some prominent figures (including former Senator Tim Wirth and attorney C. Boyden Gray in the accompanying article) offer a revanchist argument: Ethanol is not really so bad after all, and we should significantly increase its blending with gasoline from 10 to 30 percent. As Samuel Johnson remarked of a second marriage, this narrative reads like a triumph of hope over experience.
The essence of the argument that we need more, not less, ethanol in our gas tanks is linked to the U.S. Environmental Protection Agency’s upcoming mid-term review of President Obama’s fuel economy standards, established in 2012. Ethanol boosters say now is the time to ramp up the ethanol/gasoline blend to 30 percent because it will reduce harmful particulate pollution, improve gas mileage, and lower gas prices. As for the environmental costs of increased corn production, they contend that vastly improved agricultural methods are steadily reducing the use of chemicals and fertilizers on cornfields.
The truth is, however, that growing corn in the U.S. heartland still has a major environmental impact — one that will only increase if we add even more ethanol to our gasoline. Higher-ethanol blends still produce significant levels of air pollution, reduce fuel efficiency, jack up corn and other food prices, and have been treated with skepticism by some car manufacturers for the damage they do to engines. Growing corn to run our cars was a bad idea 10 years ago. Increasing our reliance on corn ethanol in the coming decades is doubling down on a poor bet.
The effort to rehabilitate corn ethanol is linked to the perceived insufficiency of federal mandates — known as the Renewable Fuel Standard — requiring an escalating quantity of ethanol from corn and cellulosic sources to be blended with gasoline annually until 2022. Cellulosic ethanol, which was supposed to supplant that made from corn in meeting the mandate, has proven a monumental disappointment, and the EPA has taken a big step back from requiring its use.
To continue to meet the renewable fuel mandate will require further use of corn-based ethanol, which is constrained by the so-called “blend wall” — a limit related to current engine design — because most of the ethanol now available is only blended with gasoline at a level of 10 percent. The ethanol industry and others are proposing raising the blend level to 30 percent. Without such a break in the blend wall, the renewable fuel standards mandates are in trouble. At present, though, fewer than 2 percent of filling stations in the U.S. sell higher than 10 percent ethanol blends.
Shrouded in the political fumes and corrosive influence of special interests, the economic fundamentals of ethanol are clear in the light of day. Two prices determine its profitability: the price of corn and the price of oil. The higher the price of corn, the more expensive it is to divert from feeding animals or making high-fructose corn syrup and instead distill it as alcohol fuel for cars and trucks. Second, the higher the price of oil, the more economically ethanol can be blended with gasoline. When corn is cheap and oil prices are high, ethanol margins are fat. But when corn prices rise and oil prices fall, ethanol margins are flat.
As ethanol production took off in the mid-2000s, aided and abetted by a panoply of federal and state subsidies, it chewed up so much corn so fast that it was hoisted on its own petard as corn prices rose to record highs in 2007 while oil prices weakened. Corn prices then fell back as farmers responded to high prices with record plantings. Today, oil prices remain low and corn prices are strengthening again. Despite recent weakness, corn prices remain nearly double their level of 2005 when the major elements of ethanol subsidies and mandates began to be put in place.
The predictable weakness in ethanol margins resulting from low oil prices has led even Archer Daniels Midland (ADM), one of ethanol’s major advocates, to reconsider its stake in its ethanol investment after years of aggressive subsidy-seeking. Reuters and Bloomberg both reported that against a backdrop of lower crude oil prices, ADM is looking at “strategic options” in its ethanol business after spending $1.3 billion since 2006 to build two new ethanol plants and seeing its fourth-quarter 2015 profits fall.
In the face of these tribulations, the revisionist ethanol narrative makes a number of shaky assumptions. First is that a reevaluation of a 30-percent ethanol blend, or E30, is timely in light of the EPA’s current fuel economy standards review, because its efficiency in high-performance engines may be an improvement over the losses in miles per gallon with a 10-percent ethanol blend, or E10.
E85 fuel in “flex-fuel” vehicles may increase ozone-related mortality, asthma, and hospitalizations.
To date, ethanol has been antithetical to fuel economy. According to the U.S. Department of Energy, vehicles typically go 3 to 4 percent fewer miles per gallon on E10 and 4 to 5 percent fewer miles per gallon on E15, because ethanol packs only about two-thirds the BTU’s of gasoline. Advocates of E30 argue that such inefficiencies can be overcome if high-compression engines are tuned to use the fuel and are certified under EPA rules, making such engines more akin to racecars. But this would mean further EPA regulatory backing for E30 to assure its availability.
A key argument of E30 proponents is that higher-ethanol blends would reduce the need for alternative fuel additives that may have negative health effects. In support, they cite studies related to the impacts of aromatic hydrocarbons from gasoline additives used to boost octane, which lead in turn to secondary particulates with impacts on human health. Without question, hydrocarbon fuels have negative health impacts. But ethanol is no exception. Stanford University’s Mark Jacobson estimates that E85 fuel in “flex-fuel” vehicles may increase ozone-related mortality, asthma, and hospitalizations by 4 percent compared to gasoline by 2020 for the U.S. as a whole and 9 percent in Los Angeles alone.
Apart from the scientific evidence that ethanol-based particles in air can kill people and make them sick, more recent scientific analysis links corn for ethanol to declining bee populations, with potentially catastrophic implications for many other high-value agricultural crops (almonds, apples) that depend on these insects for pollination. A recent study found that declines in bee populations are greatest in areas of intense agriculture in the Midwest corn belt and California’s Central Valley, both of which have few of the flowering species, such as goldenrod, that are so important to bee survival. “These results,” the study noted, “reinforce recent evidence that increased demand for corn in biofuel production has intensified threats to natural habitats in corn-growing regions.”
The Environmental Working Group’s Emily Cassidy has written that moving from E10 to E30 would mean “more carbon emissions, more toxic pollutants into drinking water, more toxic algae blooms, and higher water bills for Midwestern residents.” A preview of the role of ethanol in the climate debate occurred during the California Air Resources Board’s 2009 assessment of the full climate impact of ethanol, one of the first assessments to consider the indirect land-use effects of expanded crops and deforestation to meet biofuel demand.
That ethanol demand has no effect on corn prices would come as news to economists documenting its continuing pivotal role.
While the overall impacts on climate remain uncertain, there is no clear evidence that ethanol is part of the solution rather than the problem. If anything, a ranking of nine energy sources in relation to global climate found that cellulosic and corn-based ethanol (E85) were ranked last of nine technologies with respect to climate, air pollution, land use, wildlife damage, and chemical waste.
Third, proponents of E30 blends submit that corn used for ethanol — now about 30 to 40 percent of the U.S. corn crop — is no longer a threat to food prices due to increases in agricultural productivity and that, anyway, U.S. corn is fed mainly to livestock. The part about livestock is absolutely true. Yet even though a portion of the corn product distilled into ethanol can be recovered for animal feed, this does not mean that corn directly available for feed has not been reduced by allocating close to 30 to 40 percent to ethanol. Meat-producing animals consumed an average of 38 percent of the U.S. corn crop from 2012 to 2016, about the same as used for ethanol. If ethanol blends were raised to 30 percent, does anyone really think that there would be no impact on the prices paid by consumers for corn-fed chicken, eggs, pork, beef, and milk?
The idea that ethanol demand has no effect on corn prices would come as news to economists documenting its continuing pivotal role. Brian Wright, an agricultural economist at the University of California at Berkeley has noted that real corn prices have nearly doubled since the ethanol mandates of 2005-2007. “By the standards of agricultural policy changes, the introduction of grain and oilseeds biofuels for use in transport fuels was abrupt, and the effects on the balance of supply and demand was dramatic,” he has written.
E30 advocates seem to have recently made a novel discovery: Conservation tillage is turning corn growing into a “carbon sink” and is now practiced on nearly two-thirds of all U.S. cropland. Reality check from the Corn Belt: Conservation tillage has been practiced intensively for more than 40 years and has shown real environmental improvements over the erosive open plowing of the past. But as to the extent of its use on cornfields, the U.S. Department of Agriculture reported in 2015 that such tillage practices were used on a little more than 30 percent of all U.S. corn acres in 2010-11, mostly outside the Corn Belt This is a lower percentage than on soybeans, wheat, or even highly erosive cotton.
Ethanol sales are actually projected to decline, from 135 billion gallons to 125 billion gallons in 2022.
Ethanol demand for corn has also contributed to major withdrawals of acres from the federal Conservation Reserve Program (CRP), which were taken out of production precisely because they were highly vulnerable to erosion.
Then there is the issue of vehicle engine efficiency. Here, the argument for E30 is supported by recent experimental work at Oak Ridge National Laboratory, which shows that E30’s increased torque delivers more power to smaller, specialized engines so as to achieve rough miles-per-gallon parity with current E10 fuels. Assuming engine designs can be innovated and E30 can be made widely available, it may be possible to overcome the concentrated resistance to ethanol among consumer groups and the auto industry — in the words of a Mercedes-Benz engineer, to make “the dog like the dog food.” To date, however, the dogs’ appetite for ethanol has been weak.
Ethanol sales are actually projected to decline, according to a 2014 Congressional Budget Office report, from 135 billion gallons to 125 billion gallons in 2022, which is one reason behind the urgency of the ethanol industry to adopt higher blend levels. The American Automobile Association (AAA) has objected to ethanol blend increases even to 15 percent, noting that it could cause accelerated engine wear and failure, as well as fuel-system damage.
For this and a host of other reasons, the push to substantially boost the use of corn-based ethanol to power our cars is extremely ill advised. As the American Interest noted of the Renewable Fuel Standard and the drive for E30, “It’s rare that a policy comes along that offers so little to so many distinct groups of shareholders. In that respect, perhaps there is something impressive about the Renewable Fuels Standard: It’s found that elusive policy sour spot.”
By C. Ford Runge | Yale Environment 360 | May 25, 2016
C. Ford Runge is the McKnight University Professor of Applied Economics and Law at the University of Minnesota, where he also holds appointments in the Hubert H. Humphrey Institute of Public Affairs and the Department of Forest Resources. He is former director of the university's Center for International Food and Agricultural Policy and has written for Foreign Affairs
Lead Photograph: Corn fields in the United States heartland. DAN THORNBERG/SHUTTERSTOCK
"Aquaponics Can Reduce Food Miles"
Long travel distances for our food lead to excessive carbon use, energy use for refrigeration, food spoilage, nutrient depletion, and poorer food security. by Brian Filipowich
Long travel distances for our food lead to excessive carbon use, energy use for refrigeration, food spoilage, nutrient depletion, and poorer food security.
by Brian Filipowich
Aquaponics – and other controlled-environment growing techniques like hydroponics and aeroponics – can greatly reduce the distance food travels from farm to plate.
For the first time ever, researchers recently attempted to map out the entire U.S. food supply chain. The resulting map, above, shows an intricate web of food moving across the country. The full report is public and can be found here: Food flows between counties of the United States (Lin, 2019)
The map illustrates that our food travels long distances before it reaches our plate. “Food miles” is the measurement that tracks the actual distance food travels from farm to plate.
“Studies estimate that processed food in the United States travels over 1,300 miles, and fresh produce travels over 1,500 miles, before being consumed.” (ATTRA, 2008)
One reason for high food miles is because most food requires a large amount of open land and arable soil, and requires a specific climate to be grown at a large scale. Only certain parts of the country meet this criteria, and these areas must transport food long distances to reach all U.S. consumers. The map below shows the nine counties in the U.S. (highlighted in red) from which most food originates.
But aquaponics – and other modern growing methods like hydroponics and aeroponics – are water-based and do not require large amounts of arable soil. Also, these modern growing methods are usually practiced in “controlled-environments” like greenhouses that maintain ideal growing environments for plants throughout the entire year.
Aquaponic systems that raise edible fish can further reduce food miles by cutting down on the distance needed to transport the animal protein in our diets. The demand for animal protein is expected to rise along with world population growth. But farms that raise beef, pork, and poultry need large tracts of land far from population centers. Conversely, aquaponics and other recirculating aquaculture operations can raise fish in urban or suburban areas. And, because fish have a much more efficient feed conversion ratio than land animals, less feedstock needs to be grown and shipped, further increasing efficiency.
To read more about food miles, see Food Miles, Background and Marketing from ATTRA.
One often-overlooked benefit of local food is greater food security. Our complex web of food is susceptible to systemic shocks such as weather or disaster events. In extreme cases, disruptions could make it difficult to get enough food to a certain population. A greater proportion of local food allows areas to be better-prepared in cases of unexpected events.
But, before we assume that all food miles are bad, more research is needed to measure the tradeoffs between local and long-distance. For instance, studies show that it’s often more efficient to import fruits from distant warmer climates than to heat a local greenhouse in the winter.
More needs to be done to evaluate, quantify, and account for the hidden costs of our food system, including food miles. Analytic tools such as True Cost Accounting, Cost-Benefit Analysis, and Life Cycle Assessment (LCA) create a more complete picture of the true cost of a product. LCA takes into account the costs of a product’s entire life cycle: production, processing, packaging, transport, use, and final disposal. LCA uses indicators not traditionally captured in a product’s market price, such as resource depletion, air and water pollution, biodiversity loss, human health impacts, and waste generation.
Analytic tools like LCA can uncover the true cost of shipping foods long distances and incentivize local agriculture. Aquaponic and hydroponic growers will benefit because – without the need for soil – they can get as close to consumers as possible. The result will be fresher food, less strain on the planet, and local economic growth!
For more information:
Aquaponics Association
4531 Airlie Way, Annandale VA 22003
info@aquaponicsassociation.org
aquaponicsassociation.org