GreenFactory Emirates: The Largest Indoor Farm In The World To Be Developed In Abu Dhabi

Barendrecht (The Netherlands) and Abu Dhabi (UAE)
September 22, 2020

A joint venture between GrowGroup IFS from Barendrecht (The Netherlands) and RainMakers Capital Investment LLC from Abu Dhabi (UAE) will build the largest indoor farm in the world in the desert of Abu Dhabi. The GreenFactory Emirates will produce 10,000 tons of fresh produce per year on a plot of 17.5 hectares and a cultivation area of 160,000 square meters.

GreenFactory Emirates will develop an innovative indoor farming with the world's most advanced indoor growing system from The Netherlands. It is a combination of vertical and flat farming and solves the normal cultivation restrictions due to extreme climates in regions as the UAE. The facility will involve numerous leading agro-technological companies in its construction as best of breed for each component will be sourced through top-tier Dutch companies. It is now possible to cultivate high-quality vegetables 100% pesticide-free, all year round and anywhere on the planet: “Quality of Holland – Local Grown.” From seeding, harvesting, processing to "ready to eat" products will take place under one roof.

The joint venture also plans to build other indoor farms in other regions of the world where extreme climates are a challenge to normal cultivation.

Water, Co2, and waste

The GreenFactory will be saving 95% of water consumption as opposed to standard methods of cultivation as well as reducing its Co2 footprint up to 40%. By growing fresh produce locally, GreenFactory Emirates will also contribute to reducing waste in various other areas. Its contribution to slowly reducing reliance on fresh foods imports will in turn reduce waste of produce occurring during the transport process while reducing logistical traffic.

Research and development

GreenFactory Emirates will include a built-in research and development component that will help ramp up the production beyond the 56 current varieties of lettuces, leafy greens, herbs, and kale. It will also optimize its production by collecting real-time data to inform future global expansion of indoor farming. With confirmed partnerships with GAAS Wageningen and Delphy in The Netherlands, GreenFactory will benefit from live feedback provided by some of the best students and Academia in the field.

Food security

Food security is high on the UAE’s agenda. The country aims to be number 1 on the Global Food Security Index by 2051. In 2019, the UAE ranked on the 21st place on the Index, jumping an impressive 10 places from number 31 in 2018. Boosting local production and creating an enabling environment for agri-tech is a top priority for the government. The UAE strives to become a knowledge hub with regards to food production in heat, high humidity, and high salinity soil. The private sector (supermarket chains and the hospitality industry) has also set ambitious targets for itself in order to sell more local produce.

Partnership

The partnership between GrowGroup and rainMKRS is initiated and a result of an introduction made by the Embassy of the Kingdom of The Netherlands in the United Arab Emirates and the Monarch Group which has played an instrumental role in seeking opportunities and nurturing relationships.

Expo 2020 Dubai

The total project amounting to 650M AED (150M EURO) is planned in different phases in 3 years. Phase 1 will be operational before Expo 2020 Dubai in October 2021, so GreenFactory Emirates can show the world its innovations. A kick-off for more similar projects and innovations worldwide.

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GrowGroup IFS

GrowGroup IFS (Innovative Farming Solutions), founded by CEO John Breedveld in Barendrecht in The Netherlands, is specialized in developing indoor farming based on the most advanced Dutch innovative farming solutions, especially in regions where normal cultivation is restricted by extreme climate and or limited space.

rainMKRS Capital Investment LLC

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With offices in Abu Dhabi (UAE) and Montreal (Canada), rainMKRS is an entrepreneurial catalyst co-founded by a group of Emirati and Canadian entrepreneurs. Led by Mohamed Jouan Al-Dhaheri, Sultan Al-Nassour, Sebastien Leblond, and Jonathan Mérineau Gosselin, rainMKRS brings together the world’s most impactful companies and projects in the food and agriculture sector and UAE’s economic, educational, and investment stakeholders. rainMKRS’ objective is to help bridge the gap between these stakeholders in order to accelerate the progress on critical and strategic components in support of the UAE desire to achieve food security.

GreenFactory Emirates is its first of many initiatives in the field.

Singapore's Temasek Bets on 'Skyscraper Farms' As Growth Market

Joint Venture With Bayer To Develop Seeds

To Boost Food Security In City-State

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TAKASHI NAKANO, Nikkei staff writer

September 10, 2020

SINGAPORE -- Singapore's state-backed investment group Temasek Holdings has extended its business portfolio into urban farming, a concept that will aid the city-state in its quest to become more agriculturally self-sufficient.

Temasek and German pharmaceutical major Bayer established Unfold, a 50-50 joint venture, last month. The company will develop and market seeds for vertical farming both in Singapore and at its California headquarters.

Singapore produces less than 10% of the food it consumes. The government plans to raise the ratio to 30% by 2030.

Vertical farming, officials believe, is crucial to attaining that goal. The technique grows agroponic layers of crops under artificial light inside skyscrapers. Because the plants are not dependent on weather, the method is expected to generate large yields in a relatively quickly.

"Temasek is recognized as one of the leading investors in the food and agriculture segment," said Jurgen Eckhardt, head of Leaps by Bayer -- an investment arm of Bayer. "They have investments in, and relationships with, a range of vertical farming companies."

Bayer will provide plant genetic data to Unfold, which will first develop new varieties of lettuce, spinach and tomatoes, among other crops. The company will sell seeds to food producers.

Temasek will introduce companies to the technology and expertise at Unfold and other investment targets. Temasek holds a stake in Sustenir Agriculture, a Singaporean urban farming company, providing a channel for Sustenir to cultivate Unfold's high-yield seeds.

Vertical farming is projected to grow into a $12.77 billion market in 2026, according to Allied Market Research, up from $2.23 billion in 2018.

Temasek invested 3 billion euros ($3.7 billion) into Bayer in 2018 -- funding which helped Bayer complete the acquisition of U.S. seed producer Monsanto.

The company anticipates further investments in the agricultural sector.

"Whether it's in the area of an alternative protein, aquaculture, or crop science, it's an area that requires actually more capital," said Temasek International CEO Dilhan Pillay Sandrasegara. "So far it's done well for us and we're still keen to invest more in it."

Temasek has expanded its portfolio of life sciences and agribusiness investments. Allocation in the domains stood at 8% at the end of March, or five points higher than five years earlier. The size of the holdings is about $17 billion.

The coronavirus pandemic has heightened concerns over food security. Thailand and other trading partners temporarily imposed restrictions on exports. The Singaporean government doled out 30 million Singapore dollars ($22 million) in subsidies this April to help companies produce more eggs, leafy vegetables and fish.

"In Singapore, with less than 0.8% arable land, vertical farming innovation is critical," said Unfold CEO John Purcell.

This year, Temasek has invested in startups that develop meat and fish substitutes, as well as plant-based milk. GIC, another Singaporean state investor, in May picked up shares in Apeel Sciences, a U.S. company that developed an artificial peel for fruits and vegetables to extend shelf life.

The less-than-stellar portfolio performance has also factored in Temasek's investments into agribusiness. For the year ended March, the company reported a return of minus 2.3%, the first negative result in four years. Declining stock values of domestic companies such as the banking group DBS Group Holdings and the conglomerate Sembcorp Industries were behind the setback.

When Singapore Airlines sought to raise up to S$15 billion in rescue funds this March, Temasek was the first to indicate it would sign on in light of its status as a major investor in the carrier. Saddled with its role as a financial provider of last resort, the state investment group's ability to reap returns from investments in agriculture and other growth sectors will sway its performance.

Temasek has also stepped up investment in advanced medical fields such as biopharmaceuticals in the past year, with stakes in 10 companies revealed in 2020 so far.

Vertex Venture Holdings, a Temasek unit that oversees a fund specializing in the medical field, has invested in more than 20 healthcare-related startups, including American drug developer Elevation Oncology in July.

"COVID-19 has shone a light on the importance of continued R&D investment," said Lori Hu, managing director of Vertex Ventures HC. "It has revealed critical unmet needs in the health care industry. We continue to actively look at new deals."

Leveraging its broad network, Vertex took a stake in Israeli telemedicine platform operator Datos Health in April and invested in India's IVF Access Hospitals, which specializes in infertility treatments, two months later.

Through its investments in the medical field, Temasek is also involved in the global race to develop coronavirus treatments. It was part of a group of investors to pour $250 million into Germany's BioNTech, which is jointly developing a COVID-19 vaccine candidate with Pfizer. South Korean drugmaker Celltrion, in which Temasek holds a roughly 10% stake, has brought a diagnostic kit to market in the U.S. last month.

Investments in biopharmaceutical developers carry high risks, but the payoff can be large when a treatment successfully reaches the market. Holdings in unlisted companies accounted for 48% of Temasek's portfolio as of March-end, up six points from a year earlier.

Lead photo: Courtesy of Unfold - Vertical farms use hydroponics to grow crops inside buildings.