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Inside Larry Ellison's Futuristic Indoor Farming Company, Whose Massive, Tesla Solar-Powered Hawaii Greenhouses Are The First Step Toward An Ambitious Goal of Feeding The World
Sensei Ag is an agriculture-tech firm bent on changing the way food is grown worldwide. The company's mission is to feed the world by making produce more nutrient-rich and accessible and lowering the barrier to entry for vertical or greenhouse farming
06-15-21
An employee at Sensei's farm in Lanai, Hawaii. Sensei Ag
Oracle billionaire Larry Ellison created an indoor farming company called Sensei Ag in 2018.
The goal of Sensei Ag is to feed the world by making produce more nutrient-rich and accessible.
Sensei Ag's Tesla solar-powered greenhouses grow produce that's distributed throughout Hawaii.
Picture this: You're driving along the highway on the island of Lanai, Hawaii's smallest inhabited island. All of a sudden, the verdant landscape gives way to futuristic greenhouses powered by an array of solar panels.
This is the first outpost of Larry Ellison's 3-year-old indoor farming company, Sensei Ag.
Sensei Ag is an agriculture-tech firm bent on changing the way food is grown worldwide. The company's mission is to feed the world by making produce more nutrient-rich and accessible and lowering the barrier to entry for vertical or greenhouse farming.
And while the company is young, it has the backing of Ellison, the tech titan whose net worth hovers around $95 billion and whose aggressive bet on the future of database management turned Oracle into a $200 billion behemoth.
Ellison's latest venture seems to have an equally ambitious outlook on the future.
"In the next three-to-five years, our goal is to feed the top three quintiles of the world with our products and employ the bottom two," Sensei Ag CEO Sonia Lo told Insider. "And then in the next eight-to-10 years, it is to feed everybody."
Here's how Sensei Ag is working to making indoor farming mainstream and use its Hawaiian homebase as a "lab for the world."
Sensei Ag is the brainchild of Ellison and Dr. David Agus, a cancer physician, and professor at the University of Southern California.
Larry Ellison, left, and Dr. David Agus. Sensei Ag
Ellison is the cofounder of cloud-computing firm Oracle. The 76-year-old billionaire, who announced last year that he moved to Lanai full time during the pandemic, is known for being something of an international playboy, as well as an outspoken advocate for health and wellness.
Ellison and late Apple CEO Steve Jobs were close friends for 25 years and often spent time hiking together near their neighboring homes in Woodside, California, prior to Jobs' death from pancreatic cancer in 2011. Ellison gave a eulogy at Jobs's funeral.
Agus, 57, is a prominent physician who treats patients with advanced forms of cancer and leads the USC cancer institute funded by Ellison.
Agus and Ellison became close friends while Agus was treating Jobs' cancer, according to Forbes.
Ellison and Agus founded Sensei in 2018, and recently split the company in two: A data-driven wellness spa called Sensei Retreats, and Sensei Ag.
A person receiving a massage at Sensei Retreats in Hawaii. Robb Aaron Gordon
Located at a Four Seasons resort known as Sensei Lanai, Sensei Retreats offers guests a customizable experience: They can set physical and mental goals for their stay, and the spa will track their sleep, nutrition, and blood flow.
Sensei's overarching goal is to help people live longer and healthier lives by improving sleep, movement, and nutrition, the company says.
Sensei Ag's primary focus is to bring healthy, affordable food to the masses by making indoor farming more accessible and more sustainable.
Inside a Sensei Ag greenhouse on Lanai. Sensei Ag
"Larry's perspective and David's perspective is that indoor growing is revolutionary and that we can move the needle on feeding people globally and diminishing water use and land use," Lo said.
This goal will come with significant costs and an ambitious technology rollout, she said but cited the environmental benefits of moving farming indoors, particularly when it comes to water use: Indoor farming is shown to use significantly less water than outdoor farming. Greenhouses use roughly 10% the amount of water used in an open field, and vertical farms use even less — closer to 3%, Lo said.
In addition to focusing on sustainability, Sensei employs a team of plant scientists who are working on maximizing the nutrients in the crops Sensei grows.
What makes Sensei Ag different from other indoor farming companies, Lo said, is that it works as a franchise model.
An exterior view of Sensei's greenhouses. Sensei Ag
For the average farmer, shifting to indoor production can be prohibitively expensive, which is what's held back the indoor farming movement up to this point, Lo said.
Farmers who opt for traditional outdoor growing have "a whole infrastructure that supports you," Lo said. That includes the ability to lease a tractor, lease land, and borrow other growers' cold storage and packing infrastructure.
"Whereas if you want to be an indoor grower, you have to come up with several hundred thousand dollars, at a minimum, if not several tens of millions," Lo said.
What Sensei Ag offers is the "whole franchise package." That includes helping a farmer identify the right indoor growing form factor for their farm, whether that's a glass greenhouse or an indoor farm; setting up a "cold chain," or refrigerated supply chain; and locking in transportation and logistics.
There's also a data component to what Sensei Ag is offering to farmers. Sensei tracks factors like crop selection and what type of light a grower users, then feed that information into a dataset to help inform future Sensei partners.
The produce grown by Sensei's partners can carry the Sensei Farms branding, and Sensei will help with distribution.
Crops growing inside a Lanai greenhouse. Sensei Ag
Lo said that a benefit to being one of Sensei's franchisees is the ability to distribute your produce at major US retailers.
"If you go to Walmart and you say, 'I have a 200,000-square-foot greenhouse and I want to deal directly with you,' Walmart will say, 'Oh gosh, you know, we really can't manage you as a vendor that's that small,'" Lo said.
"Whereas if you go to Walmart and you say, 'We're Sensei, and we have 200 farms across the US,' that's a risk that Walmart is willing to take," she said.
Not all types of crops are suited to growing indoors, and what's typically grown today meets a three-pronged threshold: good nutrition, reliability, and affordability.
Tomatoes growing inside one of the greenhouses on Lanai. Sensei Ag
Lo pointed to tomatoes as a good example of food that is almost entirely grown indoors, because growers can offer good value to customers.
"That's taken 15 years and it's taken a lot of technology, a lot of reliability of growing, a lot of just processes and procedures that have come into play," Lo said.
Lo predicted that the next crops to move primarily indoors will be leafy greens and strawberries. Strawberries, in particular, are becoming harder to grow outdoors due to a change in pesticide laws.
But there are downsides to indoor growing, particularly when it comes to energy use.
Tesla solar panels at Sensei's Lanai greenhouses. Sensei Ag
Indoor farms are often powered by coal, so they still have a carbon footprint.
And while there are vertical farms that are powered by solar energy, they require as many as 20 acres of solar panels, which means you're not really using less land.
At Sensei's farm on Lanai, there are six greenhouses spanning 120,000 square feet that are capable of producing over a million pounds of food per year, according to Forbes.
The greenhouses have sensors and cameras that track data about the farms, including water usage and airflow, and are powered by Tesla solar panels. (Ellison sits on Tesla's board.)
Lo called Sensei's farm on Lanai its "lab for the world."
Sensei's farm on Lanai. Sensei Ag
"Islands are incredibly tough," she said, citing water, land, and labor constraints that make farming challenging on Lanai. But she said that the company has already met its initial goal of feeding the Hawaiian islands.
Sensei had its first harvest in August 2020, and by December, its produce was sold on every Hawaiian island. The food is packed on Lanai, then taken by barge to central Honolulu — from there, its distributed to the other islands, Lo said.
Food that's grown at Sensei Farms is distributed at the Nobu restaurant located inside the Sensei resort nearby, with the aim of measuring the effect the food has on people who visit the Sensei Wellness program.
"Now our goal is to not just make food an export of Lanai, but also to take the learnings from Lanai — the business processes, the franchising model on the island, the water conservation, the water reuse — and really make it an intellectual product and then export that intellectual product," she said.
She added: "If it works on an island in the middle of the Pacific, it will work anywhere."
USA: NEW JERSEY - Livingston Considers Resident's Sustainable Hydroponic Pilot Project Proposal
As the Township of Livingston continues to brainstorm ways to make the best use of its open spaces, Keith Hines and sustainable agriculture expert Tom Erickson recently proposed a hydroponic pilot project that would use a nutrient solution and water in lieu of soil for a community garden
By ELISE PHILLIPS MARGULIS
June 7, 2021
LIVINGSTON, NJ — As the Township of Livingston continues to brainstorm ways to make the best use of its open spaces, Keith Hines and sustainable agriculture expert Tom Erickson recently proposed a hydroponic pilot project that would use a nutrient solution and water in lieu of soil for a community garden.
After the duo’s initial proposal to implement the project at the Essex County Riker Hill Art Park fell through, the township is now looking into the possibility of doing so at the recently purchased Strahman Hill Park property.
Erickson recently presented a slideshow to the township illustrating how hydroponic technology works and demonstrating how hydroponic farming utilizes rain and solar power to grow healthy produce that can be donated to local food pantries.
“The project itself uses horticulture hydro-culture techniques to sustainably produce crops in an efficient organic manner with no impact to air, water or local environment, which is pretty important to us,” said Erickson, who also explained that hydroponics have a zero-carbon footprint. “We also plan on using the latest low-cost electronics to add a layer of control and monitoring that allows participation of the town administrators, fire, and police.”
According to Erickson, the hydroponic project could also provide unique educational opportunities for students interested in agricultural engineering and environmental sciences.
Erickson’s slideshow, much of which can be seen in the photos above, depicted a concept drawing of a greenhouse, plant-growing racks inside the greenhouse, the low-cost computer that would run the program, piping to transport the water and nutrient solution, sensors, a water pump, an aeration pump, a storage battery to operate the system at night and on rainy days, multiple solar panels and more.
He also demonstrated that easy-to-install solar kit power all water flow, aeration, lighting, monitoring, and security and that a basic, low-cost computer can monitor temperature, humidity, and liquid levels, security cameras, and sound or motion detectors.
“Our mission is to supplement the local food pantries in a sustainable, organic and efficient fashion with low environmental impact and potential for education,” said Erickson. “I think this has high potential to team up with the high school, the elementary school and open up doors to learning and training at the educational level.”
Hines, who is known in the Livingston area for his philanthropic endeavors, thanked the township council for considering a project that he feels would be important to the entire community.
“It's obviously incredibly high-tech stuff and really fascinating in terms of what can be accomplished with the technology and the fact that it's not going to have any footprint at all,” said Mayor Shawn Klein, who was impressed that the project has the potential to generate nutritious food for people who don't have access to it without causing problems with fertilizer or run off. “I think it sounds great, and hopefully we'll have a lot of success and be able to expand even in the same footprint as the county park or maybe even in town.”
To learn more or to view Hines and Erickson’s full presentation to the Livingston Township Council, CLICK HERE. (The slideshow can be found about 23 minutes into the hyperlinked video.)
AeroFarms: An Unproven Business With Enormous Risk
AeroFarms's mission is to grow the best plants possible for the betterment of humanity
June 13, 2021
Written by Jamie Louko
Spring Valley Acquisition Corp. (SV) APPHSVSVU
Summary
AeroFarms is a SPAC that is being brought to the market by Spring Valley Acquisition Corp. The deal was announced on March 26.
AeroFarms runs and operates vertical greenhouse farms. Unlike most greenhouses, AeroFarms' greenhouses take up little horizontal space, which allows them to pay less in expenses.
AeroFarms's mission is to grow the best plants possible for the betterment of humanity.
Currently, AeroFarms is not a buy, but it should be on a watchlist for investors to watch closely to see how well they can execute.
sompong_tom/iStock via Getty Images
Investment Thesis
AeroFarms (SV will become NASDAQ: ARFM) is a business that has high hopes, but with little edge from their other tech-savvy competitors, I struggle to see how they will be able to achieve the immense growth they are claiming. With poor financials and only $2.5 million in revenue, this business has not yet shown that it can achieve these expectations. Until AeroFarms can consistently show investors they are able to meet the guidance they set for themselves, it should be avoided by long-term investors.
SPAC Details
AeroFarms is being brought to the market by Spring Valley Acquisition Corp. This was announced on March 26. AeroFarms is expected to receive $317 million in cash from the deal, and the deal is expected to close in the second quarter of 2021, which would assume that AeroFarms would branch off into their Nasdaq listing, ARFM, within the month. However, SPACs usually take 4-6 months from announcement to go public, which would pin AeroFarms around July-September. September is on the longer side of this estimate, and considering estimates from Spring Valley and AeroFarms, a September target is likely inaccurate. I would expect that AeroFarms will go public sometime between late June and late July.
This process would estimate AeroFarms' equity value to be roughly $1.2 billion, which is slightly lower than another competitor that recently SPAC'ed in 2021, AppHarvest (NASDAQ: APPH). After the SPAC process, AeroFarms expects to nominate two of Spring Valley's existing directors, Debora Frodl and Patrick Wood, III, to its Board of Directors. Now that we have the basic details of the SPAC out of the way, let us dive into what AeroFarms does and why they are coming to the public markets.
AeroFarms' Mission
AeroFarms is a vertical greenhouse that is trying to change how Americans create sustainable food. This Certified B-Corp uses vertical farming, AI, and biological sciences to improve the way fresh produce is grown and distributed locally and globally. Their product, Dream Greens, "wins on quality, flavor, taste, and texture," and they sell in many major distributors like Whole Foods, ShopRite, Amazon Fresh, and FreshDirect.
AeroFarms was founded in 2004, and it became a B Corp in 2017. AeroFarms is trying to solve issues brought on by the megatrends of population growth, water scarcity, arable land loss, and climate change.
Source: Analyst Day Presentation
Currently, AeroFarms focuses on leafy greens, primarily bok choy, kale, micro broccoli, and arugula. AeroFarms' reason for existing today is to meet the need to solve issues brought on by climate change and other environmental issues. Due to strong droughts and water scarcity, water will be needed more and more if our world continues to use water at the pace we do today. AeroFarms uses 95% less water than traditional farms, which allows them to be less reliant on these problems, as well as open up water that would have been used to go towards other needs. This lack of water has also caused droughts, which can, in turn, lead to food shortages. Because AeroFarms' greenhouses are not as reliant on water, as well as the fact that they are indoors, these droughts are not as impactful to AeroFarms' business.
Source: Analyst Day Presentation
Simply put, AeroFarms sees great problems with our future if we continue to farm the way we do today, and they are trying to preemptively solve these problems.
Both co-founders are still involved, one as the CEO and the other as the CMO. Considering that AeroFarms was founded in 2004, it is clear that the founders are very dedicated to the vision and the mission of AeroFarms, and they will likely stay with the business for the long haul. If they founded this business simply to make a quick buck, the founders likely would have moved on already instead of dedicating 17 years of their lives to this business. This is a very good sign in my book. However, management is still extremely important for a business like this. If management were to cash out within a year of coming public, that would show me that the founders were not as dedicated as I thought, which would lower my conviction in this business to a more bearish conviction.
Being a SPAC, they were allowed to project revenues and estimates out to 2026. Therefore, it should come as no surprise that this company sees massive growth potential. They expect that vertical farming alone will be a $12.7 billion business by 2026, growing at over 22% 5-year CAGR. They also expect global fresh produce to become a $1.8 trillion industry by 2023, and leafy greens alone will contribute $108 billion to that large TAM. Clearly, this sort of farming is going to grow due to increases in demand (as the population increases). I have some skepticism as to whether it will be this large come 2023, but there is no doubt that the industry will be growing.
Quite frankly, it is near-impossible to correctly estimate how big this market will get. If it gets as big as AeroFarms claims it will, then AeroFarms will definitely have room to fight for market share and they will have vast opportunities to grow and become an amazing business. However, a 22% 5-Year CAGR in vertical farming is definitely aggressive. I worry that AeroFarms may be estimating on the extreme side, and that vertical farming will not grow that fast. If this is the case, then AeroFarms' potential will noticeably decrease, and it would make it a much less interesting investment.
Also, I am a firm believer that the world is going to need more greenhouses as it becomes harder to grow outdoors due to climate change and other sub-optimal weather conditions. There have been many recent droughts and other disasters that make it hard to count on reliable crops from outdoor farms, and greenhouses can minimize the impact that Mother Nature is having on our crop yields.
The sustainability of greenhouses is also a major benefit to society. The water usage is drastically lowered in greenhouses like AeroFarms, and so are emissions. These negative impacts are greatly reduced compared to traditional farms, so AeroFarms is not only helping create a sustainable supply of food, but they are also doing in a very environmentally friendly manner.
Their mission and drive to make our world better is the reason that I am writing about this stock today. I believe that AeroFarms and companies like it are trying to solve a major future problem for our world, and I am happy to give them attention for it. As I have mentioned a few times already, they have tons of competition. This competition is fierce, and it definitely has the potential to make AeroFarms fight for this market share.
Competition Concerns
As I have mentioned many times already, AeroFarms has some steep competition in the greenhouse space they are playing in. Although no major competitors are actively engaging in vertical farming (excluding one), they still have plenty of competition in the sustainable farming space.
Probably the company that first comes to mind is AppHarvest. I have written an article that dives deep into AppHarvest, but I will go over it quickly for anyone who is not extremely interested in AppHarvest. AppHarvest is a business that is based out of Kentucky and Appalachia. Unlike AeroFarms, which primarily focuses on growing leafy greens, AppHarvest's current focus is tomatoes. AppHarvest has plans in place to expand into leafy greens in a major way in the next 5 years, however. With their 60-acre farm (and 9 more facilities on the way), AppHarvest is planning to ramp up production in a major way.
AeroFarms is not expected to grow as fast as AppHarvest. Currently, the only things they are building is an R&D farm facility in Abu Dhabi, and another farm in Danville. The Abu Dhabi facility plans on breaking ground this month. They do, however, have a total of 3 farms, their biggest and only cash-generating farm bring their vertical farm headquarters in Newark, New Jersey. On April 29, 2021, AeroFarms announced that they are breaking ground and starting construction of their second farm, located in Danville, Virginia. Their third farm is the new facility in Abu Dhabi.
Clearly, both of these businesses are growing at a very fast rate. and there is no doubt that it will continue. Although they are not directly competing currently, they will likely be competing in the leafy greens area quite soon. In terms of technology, they are using similar kinds of tech, although I believe that AppHarvest has a very slight edge.
Source: Investor Presentation
The main thing that gives AeroFarms an edge over AppHarvest is how they commercialize their product. One of the weaknesses I have with AppHarvest is how they sell their product. Simply, AppHarvest partners with a distributor, Mastronardi, who then is the sole buyer of AppHarvest's product and they distribute it out to larger companies. This results in a customer concentration for them. AeroFarms does not do this, but rather they partner directly with large businesses like Whole Foods. I like AeroFarms' distribution model much more than AppHarvest's.
I would be remiss if I did not briefly mention some of the private competitors. First, Bowery Farms, another vertical farming company that is private, is a major threat to AeroFarms. First, they are roughly double the size of AeroFarms. Second, they are operating in the same rough geographical region that AeroFarms is selling in. Bowery operates in New York, with plans to expand into Pennsylvania.
Source: Bowery Website
Bowery has 2 operating farms compared to just one for AeroFarms, and they are building one more today. These farms are in New Jersey and Maryland, which is quite intrusive on AeroFarms' market. Bowery also is planning on expanding into berries, tomatoes, and carrots, while they currently grow leafy greens. Due to greater size, they have been able to reach better economies of scale than AeroFarms, so their prices are actually lower currently. Bowery also sells in 850 grocery stores. Like AppHarvest and AeroFarms, Bowery is using a similar structure of technology that enables sustainability and limits pesticides in their farming.
Another strong (and private) competitor is Gotham Greens. They operate a very unique business model: instead of building large facilities, Gotham builds its greenhouses on the rooftops of its customers. This enables extreme freshness for its customer and nearby customers.
Source: Gotham Greens Website
Gotham Greens obviously has more greenhouses built and producing crops than any of the businesses mentioned. They have 8 greenhouses, encapsulating the Northeast, as well as the West of the U.S. Currently, they are operating and selling in 40 U.S. states. Freshness is clearly Gotham's edge over AeroFarms, however, their business model can be both a blessing and a curse. Gotham is limited to small greenhouses, whereas large, 60-acre greenhouses like AppHarvest's are much more cost-effective. AeroFarms sits in the middle of these sizes for its facilities.
All of these businesses have their own edge, and it is still unknown which will make the greatest difference. However, farming is by no means a winner-take-all market. There will be many winners in this space, and potentially even all of these competitors could be successful along with AeroFarms. To quickly summarize, each company has benefits that separate them from the pack. AppHarvest has its central location (Kentucky), Bowery has strong economies of scale due to its size, and Gotham has its ability to deliver the freshest products. Now, I am going to take a look at what makes AeroFarms special compared to some of its competitors.
The Edge
Compared to traditional farming, AeroFarms' technology and sustainability is what separates them. Due to the nature of greenhouses, AeroFarms can have tight control on conditions that the plants experience, so AeroFarms can create the most optimal environment for the plants to grow faster, and be of the highest quality. They also excel at full automation of their farm. Everything from seeding to packaging their produce is fully automated.
Source: Investor Presentation
AeroFarms uses data science and a fully-controlled technology platform that enables it to better understand plants and optimize farms while improving quality and reducing costs. Simply, they are analyzing plant biology to optimize the growth of these plants.
Teams of plant scientists develop custom algorithms to precisely define the conditions each plant needs to thrive. This understanding allows AeroFarms to optimize performance, cultivate new varieties, improve quality, lower costs and optimize efficiency.
Source: Investor Presentation
This understanding of the biology of plants is extremely important for AeroFarms. One of the primary benefits they have over traditional farming is that they can create the best-looking and tasting produce. Understanding exactly how plants thrive and do this is crucial. If they were to expand into different products, such as berries or tomatoes, they would have to do this again. This knowledge may take time to learn, and if they are testing environments to see which one produces the best crops, it could take a while. However, once learned, this can be easily replicated in dozens, if not hundreds, of other facilities. Once AeroFarms learns that leafy greens thrive under (and these numbers/metrics are not accurate but for the example) 75-degree heat with high sun exposure and light water levels, they can replicate those conditions in whatever facility they grow leafy greens in. This intellect is somewhat time-consuming to learn, but once it is learned, it gives the company a massive advantage.
Through the integration of these disciplines, AeroFarms achieves up to 390 times greater productivity per square foot annually versus traditional field farming while using up to 95% less water and zero pesticides. Therefore, due to the productivity, clearly the knowledge that they learned from the data and plant biology is paying off.
Source: Investor Presentation
Another thing that most traditional famers do not have is data. AeroFarms can create lasting network effects and benefit greatly from scale if they can efficiently use and act on data they receive from their facilities.
Lastly, AeroFarms has been creating a strong library of IP since its founding. With over 250 invention disclosures and a vast library of data collected over 15 years of operations, AeroFarms is continually improving its systems to understand plants at unprecedented levels and solve agriculture-related supply chain issues. Currently, AeroFarms has 15 granted patents, with 38 more pending approval. They also have 46 designated trade secrets. The vast amount of trade secrets show that they want to keep its operations relatively unknown to its competitors, so they do not elaborate much on what those secrets entail. However, their strong number of patents show that they have actual technology that is working effectively and it is independent to them. No other greenhouse or direct competitor could do the same thing AeroFarms is doing in some of its capacities.
AeroFarms plans on bringing these trade secrets to future facilities, with plans to start construction on three farms, none of which have been announced or actually planned yet, by the start of 2023. AeroFarms also sees strawberries as a major growth avenue. Strawberries are highly cyclical due to growing conditions and they carry lots of pesticides, both of which AeroFarms is trying to solve in the farming universe.
AeroFarms has a clear edge above traditional farming, just as AppHarvest, Gotham, and Bowery do. Where I struggle to find an edge is between the technology of these businesses. After looking at the technology for all of these businesses, the results seem to be the same: more efficient production and productivity, better tasting produce, less use of water, greater sustainability. Also, all of these businesses have some sorts of patents that make their business stand out. Personally, I believe that it is not the technology that gives AeroFarms an edge over its competition, nor do I think it is vertical farming (itself).
Vertical farming alone does not provide any greater benefits over non-vertical farms in terms of quality of produce. However, I believe the optionality that comes from vertical farming when it comes to growth is the edge for AeroFarms. Unlike AppHarvest, where they need 60 acres of land to have a 60-acre farm, AeroFarms only needs a small portion of that land. With even a 48-towered farm, AeroFarms could theoretically create the same sized farm in a fraction of the horizontal size of one of AppHarvest's farms. This is beneficial in one primary way: AeroFarms would be able to go to places AppHarvest would not. For example: AeroFarms' HQ is in Newark, New Jersey. AppHarvest could never find a large enough space in that city to build a farm, but AeroFarms can.
Simply, AeroFarms has the agility in its farms to travel to cities and more urbanized geographies that competitors like AppHarvest cannot. This can give them an edge, for if both AppHarvest and AeroFarms are selling in the same city, but AeroFarms actually has a greenhouse in the city, grocers would likely sell more AeroFarms' products because of locality and freshness.
Financials and Valuation
Financially, AeroFarms is quite lacking. AeroFarms has over $48 million in cash and no long-term debt, which is wonderful, but that is just about where the good news stops. Their net revenues were $2.5 million for the FY 2020, yet their cost of goods sold was almost $8 million, resulting in a gross profit loss of $5.4 million. As they continue to scale, at least for a while, this number can get worse too. AeroFarms is spending a whopping $17 million in SG&A compared to only $1 million in R&D. This is exactly the opposite of what I want to see in a business. I want their R&D expenses to be high, because it shows me that they are heavily investing in the future of their business.
All of this combines for a grand net income loss of over $25 million. However, as most SPACs do, they are projecting monstrous growth.
Source: Investor Presentation
They are expecting their current one farm to grow to 16 farms and their revenue to grow to $553 million (from the $4 million today) by 2026. They also expect their gross margins to be roughly 50% by 2026, which is high for any farming business. EBITDA margin is also expected to reach a whopping 35%. AeroFarms is clearly spinning an optimistic story with these growth projections, and I am not sure how confident I am that they can get that done. Transitioning from negative to positive gross margin is going to be hard enough for them, and I think it will take at least until 2023 for them to do that. Therefore, the fact that they believe that they will have margins of 50% just 3 years after turning their gross profit positive is a bit of a stretch to me. I have no doubt that this company will grow, but I do doubt that they will be able to grow at such a high rate.
Also, they project that they will be able to get 3 new farms up and running and producing every single year until 2026. That is extremely optimistic growth. AeroFarms only broke ground on 2 farms recently, and they are expecting to build both of those up to production capacity in 1.5 years? That is quite aggressive. Not to mention that they would still need to find another area to build a farm, build it, and start producing crops in that same time frame. That is an extremely tall order, just to meet 2022 estimates. Then they have to do that again, and again, until 2026, just to meet guidance. Not exceed, just meet.
Clearly, I am quite skeptical about how rapidly they will be able to grow. Personally, I do not think they will be able to do this, and for me, a company that does not meet their own expectations is not worth an investment. For me, missing expectations gives me a lack of confidence in the ability of management, and therefore I lose trust. AeroFarms has not missed any expectations yet, but they have a tall order ahead of them, and any small slip in any form would likely cause consistent misses on growth estimates.
Considering that this business has not become its own public company yet, the valuation metrics are slim. Also considering that this business is gross profit negative, operating income negative, EBITDA negative, and net income negative, the only valuation metric available is Price-to-Sales Ratios.
Valued at $1.2 billion, AeroFarms has $2.5 million in sales (let's say $3 million to be super generous). At these metrics, AeroFarms' P/S Ratio would be 400. This is absolutely ludicrous. Even at AppHarvest's insanely optimistic revenue estimates, their forward 2023 P/S Ratio is over 22.
It does not help that I am skeptical on AeroFarms' own estimates for the success of their business, but 22x forward sales is quite an expensive multiple. At those high forward multiples, I would stay far away and make sure they execute and (hopefully) beat their expectations. If they can meet or beat their revenue guidance, maybe these valuations can be justified, but until they prove my skepticism wrong, this company is extremely highly valued for no good reason at all.
Why I'm Not Buying Today
Today, this business should not be touched with a 10-foot pole. The reasoning for this ultimately comes down to two concepts: Their technology is not drastically different than its direct competitors, and their financial situation is simply miserable. The first one is going to be hard to fix, which is why I am likely to remain bearish on the business, but the second one could change within the next 2-3 years. In which case, I would likely take another look at this business and rethink my thesis. For the meantime, while they are still gross profit negative, investors should definitely stay away.
Lastly, I must mention again that the valuation and AeroFarms' guidance are insane. AeroFarms' guidance assumes some of the largest growth we have seen in any modern day company, within only 5 years. These growth estimates might be accurate if they were placed out 7-10 years in the future, but 5 years for this business to go from its first sales to fully-scaled economics is highly unlikely. Even if we assume these drastic growth rates, their valuation is still quite high.
Investors should stay away from AeroFarms for now, but watch it closely for the next 2-3 years. As this business operates, we can watch to see how they prove themselves out. If they can consistently meet their own guidance and expectations, then AeroFarms' might be investment material. Until, however, they have some time to prove themselves out, AeroFarms is merely a company with little edge that is hopeful to grow at astronomical rates. Today, this business is not worth the high risk of investment.
This article was written by
Long Only, Growth, Long-Term Horizon, Tech
Contributor Since 2021
I am a college student who has found a deep thirst for learning and investing. Being very young, I have leaned toward very long-term investments and growth stocks, primarily in tech. I do, however, love consumer goods companies as well. Currently, I am studying International Business and Economics.
Disclosure: I am/we are long APPH. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Airgarden Uses NASA-Designed Technology To Give Sustainable Produce An Easy Win
Airgarden, Australia’s very first vertical soilless gardening system, is making use of the technology for the benefit of anyone obsessed with sustainable design – or for those who just want access to more home-grown produce, faster
Does Your Home Benefit From The Use
of Astronaut Technology?
No. Let’s Change That, Shall We?
Airgarden, Australia’s very first vertical soilless gardening system, is making use of the technology for the benefit of anyone obsessed with sustainable design – or for those who just want access to more home-grown produce, faster.
The game-changing gardening system is said to sprout 5 times more home-grown produce, 3 times faster, with 95% percent water. What’s more, is that the Airgarden takes up 1sqm of space so your petite inner-city apartment is no excuse to not get your green thumb on.
“The idea stemmed from wanting to grow fresh produce that was good for us, and the environment while living in the inner city,” said co-founder Prue Bauer, who started Airgarden with her brother Tom. “We were sick of throwing out so much of what we bought and wanted quality produce that didn’t cost an arm and a leg. More and more people are thinking about what they are putting in their bodies and the cost of organic food was unsustainable long term, so we knew there has to be a better solution.”
NASA-developed aeroponics technology – which has been approved by horticulturalists – is typically used to grow plants in space. Tom and Prue wisely repurposed that to allow anyone to grow their own urban farms with no digging, weeding, or watering required.
Even if the game-changing potential for giving life to your inner-city apartment doesn’t win you over. The money-saving potential surely will. With Airgarden, budding home-gardeners can sprout up to 150 different types of fruits and vegetables to feed a family of four each week. That is a significant cut to the weekly grocery run, and an easy way to incorporate more lush, leafy greens in your diet.
Airgarden is already being picked up in some sustainably-minded restaurants across Australia, including Halcyon House’s Paper Daisy restaurant, Manly Boathouse, and Wild Canary. Undoubtedly that list is going to be growing in no time, especially given as it’s a way for a restaurant to grow their own on-site garden without actually having the space (or rooftop) to do so.
What Is Aeroponics?
Aeroponics is an advanced variation of hydroponics where plants are suspended in the air; their roots dangle down and are periodically misted with water from a timed sprinkler system connected to the main nutrient reservoir
How Aeroponics Works,
Types, And Pros, And Cons
June 14, 2021
Aeroponics is an advanced variation of hydroponics where plants are suspended in the air; their roots dangle down and are periodically misted with water from a timed sprinkler system connected to the main nutrient reservoir. This soilless growing method is best for plants that need more oxygenation since aeroponic roots aren’t hampered by dense soil or thick growing mediums. Depending on the plant and specific type of aeroponics system, the grower typically uses little to no growing media at all.
In aeroponics, a specially designed pump and spray system is submerged into the nutrient-water solution and timed to release short mists of water to the plants’ roots throughout the day. Because roots will have more access to oxygen and humidity in an aeroponics system, they often grow two to three times larger and yield far bigger numbers than traditional farming methods. Generally, it also uses less water over time since excess water not absorbed by the roots is drained back into the nutrient tank, and the mist allows for higher concentrations of nutrients with less liquid.
Most of the plants that work with hydroponics will thrive in an aeroponics system, from leafy greens and herbs to tomatoes, cucumbers, and strawberries, but with additional perks. Because of the exposed root qualities of aeroponics systems, root vegetables like potatoes that would otherwise be ill-suited for hydroponics systems will flourish as they’ll have more room to grow and be easier to harvest.
Neznam / Getty Images
Aeroponics in Space
NASA began experimenting with aeroponics as early as 1997, planting adzuki beans and seedlings aboard the Mir space station in zero gravity and comparing them to controlled aeroponic gardens on Earth treated with the same nutrients. Amazingly, the zero gravity plants grew more than the plants on Earth. Aeroponics can not only provide long-mission deep-space NASA crews with fresh food, but it also has the potential to provide them with fresh water and oxygen.
How Does Aeroponics Work?
The seeds are planted somewhere they’ll stay in place, such as pieces of foam, pipes, or foam rings, which are then wedged into small pots or a perforated panel with a tank full of nutrient solution below. The panel elevates the plants so they’ll be exposed to the natural (or artificial) light and circulating air, providing light on the top and nutrient mist on the bottom, and an enclosure around the roots helps keep the moisture in. A timed pump rests inside the tank or reservoir, pumping solution up and through spray nozzles that mist the roots, with excess liquid draining straight down through an outflow chamber back into the reservoir. At the next timed interval, the entire cycle starts again.
Neznam / Getty Images
Nutrients for aeroponics systems, like hydroponics, come packaged in both dry and liquid forms. Depending on the plant and growth stage, primary nutrients may include nitrogen, phosphorus, and potassium, while secondary nutrients can range from calcium and magnesium to sulfur. It is also important to consider micro-nutrients, such as iron, zinc, molybdenum, manganese, boron, copper, cobalt, and chlorine.
In aeroponics systems where the nutrient solution is continuously recycled, the pH measurements need to be taken regularly to ensure that enough nutrients are getting absorbed into the plants.
Natural Aeroponics
Aeroponics occurs in nature, specifically in more humid and wet regions like the tropical islands of Hawaii. Near waterfalls, for example, plants will grow vertically on the rocks with their roots openly hanging in the air, the spray from the waterfall moistening the roots under the right conditions.
Types of Aeroponics
There are two types of commonly used aeroponics: low pressure and high pressure. Low pressure is the most used by home growers since it is low cost, easy to set up, and its components are easier to find. However, this type of aeroponics often uses a plastic spray nozzle and a typical fountain pump to deliver nutrients, so the droplet sizes are not exact and can sometimes waste more water.
High-pressure aeroponics, on the other hand, distributes nutrients through a highly pressurized nozzle that can deliver smaller water droplets to create more oxygen in the root zone than low-pressure techniques. It is more efficient, but much more costly to set up, so it tends to be reserved for commercial production rather than hobbyists.
High-pressure systems typically mist for 15 seconds every 3 to 5 minutes, while low-pressure systems may spray for 5 minutes straight every 12 minutes. Experienced growers will adjust the spraying interval according to the time of day, watering more frequently at night when the plants are less focused on photosynthesis and more focused on taking up nutrients. With both types, the reservoir solution is kept at a temperature range between 60 F and 70 F in order to maximize the absorption rate of the plant. If the water becomes too hot, it is more susceptible to algae and bacteria growth, but if it gets too cold, the plants may start to shut down and not take as many nutrients as they would at a more optimal temperature.
Aeroponics at Home
While some growers choose to use horizontal aeroponic systems similar to traditional soil farming, vertical systems can save more space. These vertical systems come in all shapes and sizes, even small enough to be used on a back porch, balcony, or even inside an apartment with the appropriate lighting setup. In these smaller systems, misting devices are placed on top, allowing gravity to evenly distribute the nutrient solution as it spreads downward.
Neznam / Getty Images
Aeroponics kits are available to make the setup process easier for beginners, but it is also possible to design and build your own system at home, similar to hydroponics, with tools found at most local gardening stores. Due to the complicated and expensive nature of high-pressure aeroponics, it is always prudent for beginners to start off with a low-pressure system before working their way up to more technical operations.
Fun Fact
The first recorded use of aeroponics happened in 1922 when B.T.P. Barker developed a primitive air plant-growing system and used it to research plant root structure in a laboratory setting. By 1940, researchers were frequently using aeroponics in plant root studies, as the dangling roots and lack of soil made it much easier to observe changes.
Pros and Cons
One of the most significant advantages of aeroponics systems is the fast and high crop yield and the fact that it uses the least amount of water over time compared to hydroponics and aquaponics. Roots are exposed to more oxygen, helping them absorb more nutrients and grow faster, healthier, and larger. Also, the lack of soil and growing medium means that there are fewer threats of root zone diseases.
On the flip side, aeroponic system chambers are constantly being sprayed with mist, keeping them wet and prone to bacteria and fungi; this can be remedied by cleaning and sterilizing misters and chambers regularly.
Affordability Factor
Studies show that the cost of growing a tuber (such as potatoes, jicama, and yams) using aeroponics is about one-quarter less than the cost of a conventionally grown tuber.
Due to the circular nature of the watering system and the higher nutrient absorption rate, aeroponics uses considerably less water than similar farming systems. Aeroponic equipment is also easier to move and requires much less space (nurseries can even be stacked on top of each other like a modular system). In a study comparing lettuce growth aeroponics, hydroponics, and substrate culture, results showed that aeroponics significantly improved root growth with greater root biomass, root-shoot ratio, length, area, and volume. The study concluded that aeroponics systems may be better for higher-valued crops.
surabky / Getty Images
Because the plants aren’t submerged in water, aeroponics is completely dependent on the misting system. If anything malfunctions (or in the event of power outages), then the plants will quickly dry up and die without water or nutrients. Seasoned growers will think ahead and have some sort of backup power and misting system waiting in storage in case the primary one fails. The system’s pH and nutrient density ratio is sensitive, and will require plenty of hands-on experience to understand how to properly balance them; as there is no soil or media to absorb the excess nutrients, proper knowledge about the perfect amount of nutrients is essential to aeroponics systems.
Lead photo: surabky / Getty Images
Eco-Friendly Smart Farms Based On Nutrient Solution Recirculation
UV sterilization and microbial stability analysis used to recycle nutrient solution; proposed method minimizes the use of fertilizers and water by hydroponic farms
15-JUN-2021
UV sterilization and microbial stability analysis used to recycle nutrient solution; proposed method minimizes the use of fertilizers and water by hydroponic farms
NATIONAL RESEARCH COUNCIL OF SCIENCE & TECHNOLOGY
The development of new urban agriculture technologies, such as vertical and smart farms, has accelerated rapidly in recent years. These technologies are based on hydroponic cultivation in which plants are grown using nutrient-rich solutions rather than soil. Approximately 20-30% of the nutrient solutions used during hydroponic cultivation are discharged without being absorbed by the crops, and because most farmers in South Korea do not treat the discharged solutions, hydroponic farms contribute significantly to environmental pollution.
This problem can be reduced if hydroponic farms use a recirculating hydroponic cultivation method that reuses the nutrient solutions after sterilizing them with ultraviolet (UV) light, instead of discharging them. However, two main issues complicate the implantation of such recirculation systems. First, the potential for diseases and nutrient imbalances to develop owing to microbial growth in the recycled nutrient solutions must be eliminated. Second, the initial investment required to set up a recirculating hydroponic cultivation system is often prohibitive, costing hundreds of millions of Korean won per hectare.
However, a new study conducted by researchers at the Korea Institute of Science and Technology (KIST) proposes a method that can stably manage the microbial population in recirculating hydroponic cultivation systems. The research team, led by Drs. Ju Young Lee and Tae In Ahn of the Smart Farm Research Center, KIST Gangneung Institute of Natural Products, conducted an integrated analysis of the microbial growth characteristics by constructing a model that simulates the flow of water and nutrients, and the inflow, growth, and discharge of microorganisms in recirculating and non-circulating hydroponic cultivation systems. Their simulations revealed that the microbial population in recirculating hydroponic cultivation systems can be controlled by adjusting the UV output and the water supply. On the contrary, in non-circulating hydroponic cultivation, the microbial population fluctuates considerably depending on the amount of water used, increasing sharply if there is too little water.
KIST researchers are experimenting with a circulating hydroponic cultivation system. Credit: Korea Institute of Science and Technology (KIST)
High cost has restricted the use of UV sterilization systems in hydroponic farming in Korea And prompted the research team to develop their own UV sterilization system, with further studies underway to commercialize this system as an economical alternative to imported systems.
The results of the study have already received strong interest: the rights to the operation and management software technology for recirculating hydroponic cultivation has been acquired by Dooinbiotech Co., Ltd. for an advance fee of 80 million won (8.5% of the operating revenue), while an agreement is in place with Shinhan A-Tec Co., Ltd. for the advanced recirculating hydroponic cultivation technology for an advance fee of 200 million won (1.5% of the operating revenue). Commercializing the recirculating hydroponic cultivation system is expected to reduce fertilizer costs by approximately 30~40%, which equates to 30 million won per year based on a 1-hectare farm.
Commenting on the envisaged impacts of the study, Dr. Ju Young Lee said, "The developed system makes the transition to eco-friendly recirculating hydroponic cultivation systems an affordable option for many more farmers." Dr. Tae In Ahn added, "We are also developing software and operation manuals to guide farmers in managing the nutrient balance in the solutions to increase the number of farms using the recirculating hydroponic cultivation system."
Lead photo: THE INTEGRATED MODEL DESCRIPTION. view more
CREDIT: KOREA INSTITUTE OF SCIENCE AND TECHNOLOGY(KIST)
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The study was supported by the Ministry of Agriculture, Food, and Rural Affairs (Institute of Planning and Evaluation for Technology in Food, Agriculture, and Forestry) and the Innovative Smart Farm Technology Development Program of Multi-agency Package. The research results are published in the latest issue of the Journal of Cleaner Production (IF: 7.24, ranked in the top 6.9% by JCR), a highly respected international journal in the field of environmental science.
Disclaimer: AAAS and EurekAlert! are not responsible for the accuracy of news releases posted to EurekAlert! by contributing institutions or for the use of any information through the EurekAlert system.
Is A Vertical Farm Cost Effective To Build And Operate?
A common question we’re often asked is a vertical farm cost effective to build and operate? There is no categorical answer to this complex question, which often requires a detailed feasibility study to resolve.
Author: Robert Colangelo.
Founding Farmer at Green Sense Farms Holding, INC.
A common question we’re often asked is a vertical farm cost-effective to build and operate? There is no categorical answer to this complex question, which often requires a detailed feasibility study to resolve.
The answer Starts With The 4 Cs -
Crop, Capacity, Climate, and Capital Budget.
Crop: What is the intended crop and how many varieties will be grown? At this time vertical farms can economically grow leafy greens (lettuces, baby greens, herbs, and microgreens), starter plants, and cannabis. To grow a cultivar well its best to design a farm with individual grow rooms where set points can be optimized to the monocrop. Many customers ask us to build farms that can grow a wide range of crops. We suggest specializing in growing large volumes of a few crops, that you can grow well and build a brand. This will also make production more efficient increasing the profitability.
Capacity: What is the desired output and frequency of harvest? The answer to this question is key to sizing a farm design. Understanding the production schedule and how many crop rotations a farm will hold will assist in laying out the farm. Capacity is also key to calculating the unit production cost. The bigger the farm typically the lower the unit cost.
Climate: One of the advantages of a vertical farm is that it can be built anywhere from the cold-dry climate in the South Pole to the hot- humid climate in Southeast Asia. The more humid the climate the more expensive mechanical equipment will be required to control Temperature and Relative Humidity. A good farm design can take into consideration the outside cool-dry climate and use it to reduce capital and operating expenses. In addition, cooler drier climates tend to have less bugs which will reduce operating costs when it comes to Integrated Pest Management (IPM) programs.
Capital Budget: A rule of thumb is that if you spend more on capital expense then you will reduce your operating expense. A well-built farm that is designed to optimize crop growth will lower the daily operating cost. To do this it greatly helps to have an anchor customer identified, define the crop (s) that will be grown, the harvest frequency/delivery and how it will be packaged so that these variables all be factored into the farm design.
Many other factors play a role in setting and building a farm. This includes location, automation, and labor. The 4C’s will get you off to a good start and will allow the development of an initial financial proforma so that you can predict the size of the farm, output, and the capital required to build and operate the farm profitably. I have learned that sometimes the best projects are the “ones not done.” Building a farm too big or too small can be a disaster. Starting backwards to first identify and understand the customers’ needs is a good way to begin. With adequate research and planning a vertical farm can be built to operate profitably and be a project worth doing!
VIDEO: Can An Indoor Smart Garden Beat Outdoor Gardening? We Tested It
Can smart gardens really grow delicious vegetables inside your apartment? WSJ asked Timothy Hammond, an urban gardener, and educator in Houston, to test out Rise Gardens
Can smart gardens really grow delicious vegetables inside your apartment? WSJ asked Timothy Hammond, an urban gardener, and educator in Houston, to test out Rise Gardens hydroponic smart garden to see how the vegetables compare with his own outdoor garden.
Photo: Ben Hallock for The Wall Street Journal
MIT Engineers Have Discovered A Completely New Way of Generating Electricity
A new material made from carbon nanotubes can generate electricity by scavenging energy from its environment
By ANNE TRAFTON
MASSACHUSETTS INSTITUTE OF TECHNOLOGY
JUNE 7, 2021
MIT engineers have discovered a way to generate electricity using tiny carbon particles that can create an electric current simply by interacting with an organic solvent in which they’re floating. The particles are made from crushed carbon nanotubes (blue) coated with a Teflon-like polymer (green). Credit: Jose-Luis Olivares, MIT. Based on a figure courtesy of the researchers.
Tiny Particles Power Chemical Reactions
A new material made from carbon nanotubes can generate electricity by scavenging energy from its environment.
MIT engineers have discovered a new way of generating electricity using tiny carbon particles that can create a current simply by interacting with liquid surrounding them.
The liquid, an organic solvent, draws electrons out of the particles, generating a current that could be used to drive chemical reactions or to power micro- or nanoscale robots, the researchers say.
“This mechanism is new, and this way of generating energy is completely new,” says Michael Strano, the Carbon P. Dubbs Professor of Chemical Engineering at MIT. “This technology is intriguing because all you have to do is flow a solvent through a bed of these particles. This allows you to do electrochemistry, but with no wires.”
In a new study describing this phenomenon, the researchers showed that they could use this electric current to drive a reaction known as alcohol oxidation — an organic chemical reaction that is important in the chemical industry.
Strano is the senior author of the paper, which appears today (June 7, 2021) in Nature Communications. The lead authors of the study are MIT graduate student Albert Tianxiang Liu and former MIT researcher Yuichiro Kunai. Other authors include former graduate student Anton Cottrill, postdocs Amir Kaplan and Hyunah Kim, graduate student Ge Zhang, and recent MIT graduates Rafid Mollah and Yannick Eatmon.
Unique properties
The new discovery grew out of Strano’s research on carbon nanotubes — hollow tubes made of a lattice of carbon atoms, which have unique electrical properties. In 2010, Strano demonstrated, for the first time, that carbon nanotubes can generate “thermopower waves.” When a carbon nanotube is coated with layer of fuel, moving pulses of heat, or thermopower waves, travel along the tube, creating an electrical current.
That work led Strano and his students to uncover a related feature of carbon nanotubes. They found that when part of a nanotube is coated with a Teflon-like polymer, it creates an asymmetry that makes it possible for electrons to flow from the coated to the uncoated part of the tube, generating an electrical current. Those electrons can be drawn out by submerging the particles in a solvent that is hungry for electrons.
To harness this special capability, the researchers created electricity-generating particles by grinding up carbon nanotubes and forming them into a sheet of paper-like material. One side of each sheet was coated with a Teflon-like polymer, and the researchers then cut out small particles, which can be any shape or size. For this study, they made particles that were 250 microns by 250 microns.
When these particles are submerged in an organic solvent such as acetonitrile, the solvent adheres to the uncoated surface of the particles and begins pulling electrons out of them.
“The solvent takes electrons away, and the system tries to equilibrate by moving electrons,” Strano says. “There’s no sophisticated battery chemistry inside. It’s just a particle and you put it into solvent and it starts generating an electric field.”
“This research cleverly shows how to extract the ubiquitous (and often unnoticed) electric energy stored in an electronic material for on-site electrochemical synthesis,” says Jun Yao, an assistant professor of electrical and computer engineering at the University of Massachusetts at Amherst, who was not involved in the study. “The beauty is that it points to a generic methodology that can be readily expanded to the use of different materials and applications in different synthetic systems.”
Particle power
The current version of the particles can generate about 0.7 volts of electricity per particle. In this study, the researchers also showed that they can form arrays of hundreds of particles in a small test tube. This “packed bed” reactor generates enough energy to power a chemical reaction called an alcohol oxidation, in which alcohol is converted to an aldehyde or a ketone. Usually, this reaction is not performed using electrochemistry because it would require too much external current.
“Because the packed bed reactor is compact, it has more flexibility in terms of applications than a large electrochemical reactor,” Zhang says. “The particles can be made very small, and they don’t require any external wires in order to drive the electrochemical reaction.”
In future work, Strano hopes to use this kind of energy generation to build polymers using only carbon dioxide as a starting material. In a related project, he has already created polymers that can regenerate themselves using carbon dioxide as a building material, in a process powered by solar energy. This work is inspired by carbon fixation, the set of chemical reactions that plants use to build sugars from carbon dioxide, using energy from the sun.
In the longer term, this approach could also be used to power micro- or nanoscale robots. Strano’s lab has already begun building robots at that scale, which could one day be used as diagnostic or environmental sensors. The idea of being able to scavenge energy from the environment to power these kinds of robots is appealing, he says.
“It means you don’t have to put the energy storage onboard,” he says. “What we like about this mechanism is that you can take the energy, at least in part, from the environment.”
Reference: “Solvent-induced electrochemistry at an electrically asymmetric carbon Janus particle” by Albert Tianxiang Liu, Yuichiro Kunai, Anton L. Cottrill, Amir Kaplan, Ge Zhang, Hyunah Kim, Rafid S. Mollah, Yannick L. Eatmon, and Michael S. Strano, 7 June 2021, Nature Communications.
DOI: 10.1038/s41467-021-23038-7
The research was funded by the U.S. Department of Energy and a seed grant from the MIT Energy Initiative.
How UAE Produce Is Taking Over The Dining Table: 'We Are Growing All This On Our Doorstep'
Local farms are reporting a rise in demand, while Atlantis, The Palm resort has introduced an initiative to put UAE produce on its restaurants' tables
Local farms are reporting a rise in demand, while Atlantis, The Palm resort has introduced an initiative to put UAE produce on its restaurants' tables
Oasis Greens is a hydroponic farm located in the Jebel Ali free Zone. All photos by Antonie Robertson / The National unless otherwise mentioned
The concept of a “farm tour” is not what it once was.
Instead of the smell of open mud and fertilizer that I used to equate with a farm, I’m standing inside a pristine, temperature-controlled room that contains rows of herbs and leafy greens stretching out to the ceiling.
I am at Oasis Greens, one of many hydroponic, vertical farms to have cropped up in Dubai over the past few years. In this high-tech environment, seeds are planted into foam, which is placed in a solution that provides plants with all the nutrients they need, while LED lights overhead mimic the rays of the run.
The process involves no messy soil or pests and, by default, no need for pesticides either, while 90 percent less water is used than required by traditional farms. The result is sustainably grown, organic and local produce – from varieties of lettuce (be it butterheads and icebergs) to kale, rocket, and bok choy.
Why buy UAE-grown fruits and veggies?
Oasis Green hydroponic farm, located in Jebel Ali Free Zone. Antonie Robertson / The National
Whether it’s a hydroponic or traditional farm, there are indisputable benefits of opting for local over imported produce, which is being noticed by both consumers and big brands.
Among the latter is Atlantis, The Palm, which has launched a sustainability initiative titled the Atlantis Atlas Project.
One of the cornerstones of this campaign is a pledge to give diners access to dishes that are made with locally sourced and organic ingredients, grown and harvested in the UAE. Kelly Timmins, director of conservation, education and corporate social responsibility at the hotel, says the reason for this is two-fold.
“One of the key focuses for Atlantis is to look at increasing our use of local suppliers and vendors as part of our commitment to drive the whole local economy."
She says using local produce is better for the environment as it reduces freight and the carbon footprint involved with bringing in goods from across the world.
Plants are grown in foam rather than soil in hydroponic farms like Oasis Greens. Antonie Robertson / The National
“We are trying to see how we can source perishable products responsibly. Sustainability is a journey and to get there we need the involvement of our community,” she explains.
To procure fresh ingredients on a daily basis, Atlantis, The Palm has teamed up with Fresh on Table, which works as a facilitator between UAE farms and consumers. The company, which launched in Dubai in 2019, takes orders from hotels, stores and customers online, and co-ordinates with farms to ensure that the product is harvested, packaged and delivered the next day.
According to commercial manager Garima Gambhir, the company has grown month-on-month, and currently works with more than 1,000 farms, as well as big hotel groups.
Home-grown company Fresh on Table supplies products from farms to consumers. Supplied
“Chefs realise that local produce is just fresher and going to last longer on the shelf, as opposed to something that has, say, been imported from [the Netherlands] and passed through three days of transit before reaching the kitchen,” she says.
The pandemic has also had an invariable role to play in the rising demand for local produce.
“When borders and hotels started closing last year, the supply food chain was disrupted. With distributors unable to fulfil contracts from international suppliers, we were able to pitch in because everything was local, reliable, and could be picked up from a farm and delivered in a few hours,” says Gambhir.
Oasis Greens currently grows varieties of lettuce, leafy greens and microgreens. Antonie Robertson / The National
Local farms have also witnessed a spike in demand over the past year. Nikita Patel, founder of Oasis Greens, says despite the pandemic, business has been good, with a notable rise in online orders.
“Everyone has been at home, cooking. And even though we didn’t have a lot of tourists come in, residents weren’t leaving, either,” she says.
“I think the pandemic made people realise that food security isn’t a theoretical thing. In a lot of countries, people were having issues with grocery items running out, but the UAE did a very good job ensuring that didn’t happen. Over the past year, more companies are looking inwards and seeing how they can source local. We are just riding the wave.”
Hydroponic farms in the UAE
At UNS Hydroponic, custom LED lights mimic the rays of the sun, helping plants grow. Antonie Robertson / The National
Oasis Greens grows approximately 12 to 15 types of herbs and leafy greens, and has started cultivating microgreens. “The aim is to get into fruits and vegetables, too,” says Patel. “We want to grow cherry tomatoes, chillies and more.”
Within the industrial area of Al Quoz, meanwhile, grows one of the largest, most lush indoor vertical farms in the region. UNS Farms is home to 16 varieties of leafy greens and 16 varieties of micro greens across a space of 5,600 square metres.
During a tour, executive director Mehlam Murtaza asks us to dip our feet in a solution to ensure we don’t track any crop-destroying bacteria or germs inside, before explaining how different elements can affect the growth of plants.
“Our LED lights are a custom design with a special spectrum. Each colour actually has a different effect on the crop – they can widen the leaf size, make them longer or have another indirect effect,” he says.
The nutritional value of the plant remains unchanged, though, with a lot depending on the quality of the seeds used. The seed also plays a role in the taste – at USN Farms, I’m given two types of basil leaves, Thai and Italian. Despite the fact that both varieties are grown in the UAE, the Italian version is subtle in taste and smell, while the Thai is sharper.
UNS Farms in Al Quoz is spread over 5,600 square metres. Antonie Robertson / The National
“We have just scratched the surface about what we can do,” says Murtaza. In the future, research and development may be able to further tweak the taste of plants, he adds. "Who knows what's next? Maybe cotton-candy-flavoured herbs."
With a number of perks of buying local, it does beg the question: why haven’t hotels been doing this all along?
Murtaza says it’s only in the past couple of years that vertical farms have developed to deal with the volume they need. Even then, the maintenance and power required to run hydroponic farms means only certain crops can be grown at financially feasible rates.
Locally 'farmed' seafood in the UAE
Fish Farm in Jebel Ali grows organic and regular salmon, sea bass, sea bream, yellow tail kingfish and hammour. Antonie Robertson / The National
Supporting local goes beyond leafy greens. While the UAE is blessed with an abundance of seafood, there is still a reliance on imports.
That's something home-grown company Fish Farm is aiming to change. Launched in 2013, the company identified the most in-demand fish species being imported and sought to change this by growing them within the country. It currently produces organic and regular salmon, sea bass, sea bream, yellowtail kingfish, and hammour.
“It’s all part of building our food security,” says chief executive Bader bin Mubarak. “At the moment, less than 10 percent of the fish is locally acquired. We want to be able to cover the entire UAE market.”
The company plans on doing this with the help of three facilities: a caged farming facility in Dibba, a hatchery in Umm Al Quwain, and a land farming facility in Jebel Ali.
At the facility in Jebel Ali, Mubarak explains how juveniles and eggs were first sourced from different parts of the globe to ensure the right genetics.
“But since then, we have been hatching our own fish eggs,” he says. The Fish Farm was the first establishment in the world to grow Atlantic salmon on land, from eggs, Mubarak says.
Fish Farm has recreated ideal marine conditions for various species of fish. Antonie Robertson / The National
Business development manager Edmund Broad agrees that it is all about growing and harvesting seafood in the most sustainable manner possible.
“One of the biggest problems with the seafood industry is the pressure it puts on wild fish stocks, through commercial hunting using huge nets. We are a substitute for this. By growing fish on land in a controlled and secure environment, we are not taking anything from the sea. We’re leaving the oceans alone.”
The farm has recreated the ideal environments required by fish, many of which stem from cold-water countries, such as Scotland and Iceland. The fish swim in an area with appropriate salinity, currents, temperature, pH level, and even lighting.
“We’ve recreated the ideal marine conditions suitable to each species: the Atlantic for the salmon, the Pacific for the yellowtail kingfish, the Gulf for the hammour and the Mediterranean for the sea bass,” explains Broad.
The farm currently produces 3,000 metric tonnes of fish per year. “By 2030, we want 50 per cent of seafood consumed to be produced within the country,” says Broad.
From farm to table
UAE residents can get a taste of these sustainable and local ingredients in some of the best restaurants in the country. Thanks to its sustainability pledge, nine of Atlantis, The Palm's signature restaurants are serving dishes with ingredients grown and harvested in Dubai.
Locally hand picked mushrooms, pecorino and truffle at Bread Street Kitchen. Courtesy Atlantis, The Palm
Guests can tuck into locally produced burrata from Bread Street Kitchen or an organic salmon carpaccio from Seafire Steakhouse. Hakkasan is offering dim sum with locally handpicked chestnut mushrooms while Nobu has a crispy hand-picked shiitake mushroom truffle salad.
Ronda Locatelli, The Shore, Wavehouse, and White Restaurant are some other restaurants offering dishes with sustainable ingredients.
Seven-day dry-aged organic Atlantic salmon, grown in the UAE, is available at Seafire Steakhouse. Courtesy Atlantis, The Palm
Raymond Wong, chef de cuisine at Seafire Steakhouse, says the difference between imported and local ingredients is staggering.
“As a chef, an import order is always challenging as you need to place it three to four days in advance for your produce to come in time. But with this initiative, we can order just a day in advance from sustainable farms in Dubai and the produce is as fresh as it can be.”
He hopes this will encourage other restaurants and hotels to follow suit. “I think it will bring a lot of awareness. A lot of people don’t even know we are growing all this on our doorstep.”
June 13, 2021 07:48 AM
Click & Grow 25 Is An Efficient, Self-Monitoring Indoor Garden
“I started the company with a dream to make fresh food available and accessible for everyone and with the Click & Grow 25, we finally made it happen in a sustainable way,” said Mattias Lepp, founder, and CEO of Click & Grow
Written by Dawn Hammon
June 9, 2021
In a world struggling to find balance between busy lifestyles and healthy living, Click and Grow 25 aims to offer an easy-to-use way to grow organic food inside your home.
The smart indoor garden only takes up as much space as a microwave, yet with stacking trays, you can grow fresh produce for one person, two people or an entire family. With such a compact design, anyone can incorporate the Click & Grow 25 into their apartment, home or office.
The system is intuitive and does most of the work for you. Simply select your proprietary biodegradable Smart Soil plant pods, which are similar to the design used in single-serve coffee machines. Each pod is pre-loaded with seeds and soil. Once planted, the built-in technology takes over, monitoring the growth of leafy greens, fruits, and herbs.
This self-growing garden takes care of plants automatically by maintaining optimal levels of moisture, nutrients, root oxygen and pH. The device ensures perfect conditions needed to grow lush produce at a faster rate than you will find in an outdoor garden. Plus, the direct garden-to-table aspect offers a higher nutrient content than store-bought food, often pulled from the field weeks before. All plants are organic without the need for fertilizers and pesticides.
Click & Grow 25 not only provides convenience, but its energy-efficient design consumes just 200 kWh of electricity per year, which equates to about $40 in large urban areas. An associated app lets users know when it is time to add more water and offers harvesting tips as well as recipes.
“I started the company with a dream to make fresh food available and accessible for everyone and with the Click & Grow 25, we finally made it happen in a sustainable way,” said Mattias Lepp, founder and CEO of Click & Grow. “With the impact of population growth and the demand on our natural resources, it is inevitable for us to become more self-sufficient. I believe we are all going to be growing some of our food at home soon and I’m certain we’ve developed the best solution to do just that.”
Click & Grow 25 recently launched via Kickstarter, where it was fully funded in the first 20 minutes. At the time of writing, it had raised over $500,000 of the $35,000 goal.
Images via Click & Grow
Another Week, Another Webinar! You are Invited To Join Us on The 17th of June For The: FTS Virtual Round Table Talks HR in CEA
Agriculture, as a whole, has a wide range of labor and HR challenges. How can CEA help the horticulture industry overcome these problems? Join FarmTech, Ponic Jobs, and more experts from the field in this webinar to find out
Agriculture, as a whole, has a wide range of labor and HR challenges. How can CEA help the horticulture industry overcome these problems? Join FarmTech, Ponic Jobs, and more experts from the field in this webinar to find out!
Register For The Webinar >>
The webinar will be interactive, hosted via Zoom, and there is time reserved for a Q&A directly with the experts. Can't join live? Register now and you'll be able to watch the recording of the webinar at your convenience.
Join us on Thursday 17 June!
FTS virtual round table talks HR in CEA
Thursday 17 June 15:00 – 16:30 (GMT +2)
Kyle BarnettFounder/Owner, Ponic Jobs
Moderator
Todd DowningManaging Partner, Best Human Capital & Advisory Group
Table guest
Charlotte VisserCOO, Viscon Group
Table guest
Lisanne MeulendijksSpecialist Vertical Farming, Delphy Improvement Center
Table guest
Kate BrunswickStrategic Relationship Manager, Innovation AgriTech Group
Table guest
Clement CardonAgriculture Policy Assistant, FarmTech Society
Table guest
See The Program>>
Spread, Chubu Electric Power And ES-CON JAPAN Enter An Investor Agreement, Plan To Construct Techno Farm Fukuroi, World’s Largest Vertical Farm To Produce 10 Tons Daily
Spread is excited to enter the investor agreement with Chubu Electric Power and ES-CON JAPAN, as all partners share the same vision and values of sustainable agriculture, and each partner is bringing their own unique strengths to the partnership
Spread Co., Ltd., Chubu Electric Power Co., Inc., ES-CON JAPAN Ltd., announced today that they have entered into an investor agreement regarding the establishment of TSUNAGU Community Farm LLC to construct and operate vertical farms.
Expectations are high for vertical farms for stable production of pesticide-free agricultural products through precise control of the cultivation environment.
Many hope that vertical farms will provide a solution for a number of problems, such as growing consumer needs for food safety, a decrease in farming population, as well as food supply instability, and price fluctuations due to extreme weather.
Based on the agreement, Spread, Chubu Electric Power, and ES-CON JAPAN will jointly establish the new company that will construct and operate vertical farms, in July 2021.
As its first initiative, the new company is planning to build an automated vertical farm Techno Farm Fukuroi” in Fukuroi city (Shizuoka, Japan), which will be the world’s largest automated vertical farm, capable of producing 10 tons of lettuce per day.
The construction will start in October this year, while the production start is planned for January 2024.
The integration of Chubu Electric Power’s energy management know-how, ES-CON JAPAN’s real estate development capabilities, and Spread’s cultivation technologies will allow for the efficient and stable production of pesticide-free, safe and clean vegetables.
Spread, Chubu Electric Power, and ES-CON JAPAN aim to solve the issues affecting food and agriculture through vertical farming, while actively utilizing renewable energy and effectively using CO2 in the cultivation process to achieve a sustainable society and the delivery of SDGs through decarbonization.
About Spread
Since its establishment in 2006, Spread has been promoting vertical farming with the goal of creating a sustainable society.
In 2018, Spread started shipping from the large-scale automated Techno Farm Keihanna in Kizugawa, Kyoto which is the first facility to employ Spread’s next-generation food production system Techno Farm?. In less than 2 years from the start, Techno Farm Keihanna reached a stable operating rate of 99%. Spread will further refine Techno Farm? technologies that allow stable production anywhere at any time, and plans to reach 100 tons of daily production domestically by 2030, while pursuing various business opportunities both in Japan and overseas. Under the concept of “Sustainable Vegetable”, Spread delivers its own vertically farmed vegetables brand Vegetus to approximately 4,000 stores in Japan. Since the start of the brand in 2008, Spread has sold over 70 million packs in total*1.
Spread is excited to enter the investor agreement with Chubu Electric Power and ES-CON JAPAN, as all partners share the same vision and values of sustainable agriculture, and each partner is bringing their own unique strengths to the partnership.
Unique Features of Techno Farm Fukuroi
Largest vertical farm in the world, capable of producing 10 tons of lettuce per day
Standardized, efficient operations via automated cultivation
Even more precise environmental control
Recycling of the water used for cultivation
Energy-saving due to in-house developed LED lighting specifically for vertical farming
IoT-based cultivation management system
Pesticide-free, stable production, not influenced by the weather
Utilization of renewable energy
Spread will continue to pursue further business opportunities through technological innovation both in Japan and overseas.
Spread aims to provide solutions for the global problems of climate change and food security and the delivery of a truly sustainable society.
Techno Farm Fukuroi’s Specification
Construction site: Fukuroi-shi, Shizuoka Prefecture, Japan Farm type: Indoor Vertical Farm using Artificial Lighting Site area: Approximately 24,400㎡
Product: Leafy greens（Lettuce）
Production capability: 10 tons per day / 3,650 tons per year Production start: January 2024
Overview of TSUNAGU Community Farm LLC
Established: July 2021 (scheduled)
Location: 1, Higashi-shincho, Higashi-ku, Nagoya-shi, Aichi Prefecture Managing partners: Chubu Electric Power (representative member), ES-CON JAPAN, Spread
Investment: Chubu Electric Power: 51%, ES-CON JAPAN: 48%, Spread: 1%
Business: Production and sale of agricultural products through the operation of vertical farms, utilizing fully artificial light
Overview of Chubu Electric Power Co., Inc.
President & Director：Kingo Hayashi
Business：Renewable energy business, Nuclear power business, Overseas business, Community support infrastructure-related business, Etc.
Overview of ES-CON JAPAN Ltd.
President & Representative Director：Takatoshi Ito
Business：Real estate sale, Real estate leasing, Real estate planning, brokerage, and consultation
Overview of Spread Co., Ltd.
Chief Executive Officer ：Shinji Inada
Business：Vertical farming operation, management, and sales of the products
"We Store CO2 From The Outside Air To Make Plants Grow Faster"
“Our ultimate goal is to make greenhouses independent of fossil fuels while improving their crop yield”, says Jarle. This ambitious goal is the main motivation behind their unique, yet a straightforward new product: an environmental climate system that provides plants inside of the greenhouse with outside CO2.
Bringing captured CO2 into the greenhouse with zeolites
“In short, we capture CO2 from the air outside and then release it inside the greenhouse. As our system includes the greenhouse to be a closed system, all the CO2 inside will increase plant growth. This new technology does not give any emissions to its surroundings while in use and the solution is 100% climate-neutral”, Jarle Skjæveland with GreenCap Solutions explains. The company recently launched their product, and they are working on several projects in Norway and abroad.
“Our ultimate goal is to make greenhouses independent of fossil fuels while improving their crop yield”, says Jarle. This ambitious goal is the main motivation behind their unique, yet straight forward new product: an environmental climate system that provides plants inside of the greenhouse with outside CO2. On top of that, it allows for the reuse of condensed water, which further reduces costs for growers.
GreenCap Solution’s technical team combines decades of energy in the oil and gas industry, which is now taken to the greenhouse industry. For the past four years, they have been working on the carbon-capturing technique. Last year, they started working with the first greenhouse company to apply the technique: Lauvsnes Gartneri, a tomato greenhouse in Finnøy, Norway. The second project they started this year is with a Norwegian cucumber grower.
Zeolites: a tried method
For the capturing of the CO2 molecules, the company uses zeolites, a porous mineral that can adsorb large quantities of gas. Zeolites occur naturally but are also produced industrially. “Using zeolites as carbon adsorbent is nothing new. It was already used in the 1960s for industrial applications. Our invention is effectively using the energy and storing the CO2 for greenhouse application, in combination with climate control within the greenhouse,” Jarle explains.
Inside the greenhouse, the CO2 is transported by a constant air flow. “With the greenhouse closed on a sunny day, the temperature might get too high. For that reason, we have a circulation system that shifts the air every 10 minutes. Air tubes underneath the plants produce a constant low-speed airflow. This way, the temperature inside can be a comfortable 24 C even in a hot climate,” Jarle adds.
Vertical farming in Saudi Arabia
This technique comes in handy as the company recently started a new project in Saudi Arabia. This time not with a greenhouse but with a vertical farm that grows eight layers of lettuce. “When we visited Saudi Arabia some months ago, we noticed that some people were skeptical as to our technology would work in a hot climate too. With this new project, we are proving that our technique works, not only for different crops in different growing systems but also in different climates. And the additional benefit is that there we can make better use of solar power as well, taking advantage of the natural resources available.”
In many European countries, growers generally have a combined heat power (CHP) that already provides additional CO2 to growers. But according to Jarle, the systems can be combined easily. “Our technique is twofold: either we replace the current CO2 source or we add it to the closed growth environment. Both work fine together, but with our system, growers can stop using fossil fuels completely while still giving that beneficial CO2 to their plants. Besides, many countries do not need the extra heat provided by the CHP, at least not year-round. In that case, working with a CHP is not cost-effective.”
Already within the horticultural industry, GreenCap’s environmental climate control system can have many different applications. But the company is already investigating other possible usages of their carbon adsorbent technique. “CO2 is used in other industries too, so we are investigating other expansion already, such as companies absorbing their CO2 emission. However, horticulture is such a vast and rapidly growing industry. Imagine this huge industry, that is so essential for the food production of the entire world, being totally emission-free. That is what we’re working for.”
A promotional video of GreenCap Solution's system can be watched here.
For more information:
GreenCap Solutions
www.greencap-solutions.com
Publication date: Fri 4 Jun 2021
Author: Jenneken Schouten
© HortiDaily.com
CANADA: Firefly: A Bug Early Warning System / Precision Crop Health Monitor
LEAN Systems and its technology partner, Proxilogica, are pleased to announce the start of pre-production testing of “Firefly” in collaboration with Agriculture and Agri-Food Canada at the Lethbridge Research Development Center (LeRDC)
Delivering unprecedented crop state comprehension through innovative high-density instrumentation and the power of the cloud
Canada – LEAN Systems and its technology partner, Proxilogica, are pleased to announce the start of pre-production testing of “Firefly” in collaboration with Agriculture and Agri-Food Canada at the Lethbridge Research Development Center (LeRDC).
The Firefly is a wireless and self-powered IoT imager the size of a credit card, purpose-built for early detection of disease and pest outbreaks in the cereal crops and horticulture industry.
The LEAN/Proxilogica team has worked in collaboration with AAFC-LeRDC for almost two years to explore economical digital imaging systems for indoor plant phenotyping pursuant to a three-year material development agreement.
Dr. Anne Smith, a research scientist at LeRDC, together with her colleagues Drs. Jonathan Neilson and Charles Geddes have been developing inexpensive imaging platforms for digital image capture and image analysis protocols for plant phenotyping in growth rooms, greenhouses, and laboratories. Drs. Smith and Neilson, over the last two years, have been collaborating with LEAN Systems to test their technology. The early systems, which were installed less than one month prior to reducing on-site presence in response to COVID-19 restrictions, showed:
· effective image capture over greenhouse plants
· the ability to upload images remotely to a central server
· provide regular downloadable images to the user
· apply image analysis protocols to automatically extract information on plant growth over time
Dr. François Eudes, Director of Research and Technology, LeRDC, says “digital imaging solutions in controlled growth environments have supported research programs during the pandemic and have given us a view of the future of distributed teamwork and data-intensive plant science.”
Dr. Keshav Singh, who recently joined the team at LeRDC, says “diversified applications of Firefly sensing technology over traditional agricultural industry will facilitate the digital ag revolution for global food security. It will involve further development of ground-sensing Firefly technology and possibly aerial platform (drone) applications for rapid field scouting. In the future, this technology will help growers make critical decisions related to identifying types of pests and tracking micro-climates within a field much faster than ever before.”
AAFC is excited to continue working with LEAN Systems on the Firefly technology for automated image capture and extraction of plant phenotyping information relevant to rapid assessment of new varieties, the impacts of abiotic and biotic stresses, and for screening herbicide resistance in a variety of weed species.
Dr. David Southwell, CEO of Proxilogica Corporation, says behind the Firefly architecture are “large fleets of tiny imagers that maximize space coverage with enough onboard intelligence to pre-process and securely transmit data to the cloud where bird’s eye maps are then assembled. AI-boosted analytics functions may be performed at both edge and core, drastically reducing network traffic thereby enabling fleet scaling. We start in CEA spaces and will soon be ruggedizing and adapting the imagers for more demanding open field horticulture applications, including UAV platforms.”
“We are very excited about this technology and see the opportunity for a range of strategic B2B relationships to accelerate commercial evaluation and deployment as well as additional initiatives with research partners globally to expand the Firefly’s useful purpose,” said Bill Halina, managing director of LEAN Systems.
About AAFC:
The Lethbridge Research and Development Centre (LeRDC) was established in 1906 in Lethbridge, Alberta, and is one the largest facilities within Agriculture and Agri-Food Canada's (AAFC) network of 20 research and development centres. LeRDC leads research on beef cattle production systems, crop production, and sustainable production systems under dryland and irrigated conditions associated with farming in a semi-arid climate.
Dr. Anne Smith is a research scientist at LeRDC who specializes in remote sensing applications for agriculture. Over the last 25 years she has conducted studies in cropping systems and grasslands using satellite, airborne, drone and ground-based multispectral, hyperspectral, and radar systems.
Dr. Keshav Singh is a research scientist at LeRDC who specializes in high-throughput proximal and aerial imaging technologies to study canola, legume, and cereal crop phenomics. His work mainly involves agronomic data processing, image-cube analysis, algorithm development, crop mapping and analytics.
For more information:
https://profils-profiles.science.gc.ca/en/research-centre/lethbridge-research-and-development-centre
About Proxilogica:
Proxilogica was incorporated in 2017, built around a team of engineers with more than two decades of experience in technical computing with a vision to develop edge analytics devices. Firefly is the first technology to emerge from this campaign, aimed at improving productivity in precision horticulture.
For more information:
The Proxilogica Corporation
contact@proxilogica.com
www.proxilogica.com
About LEAN Systems:
LEAN Systems Limited Partnership (LP) was registered in the Province of Alberta on July 19, 2018 to help The Proxilogica Corporation fund development of proprietary technologies in the field of horticulture. The LP is managed by LEAN Systems GP Inc. who also provides business development support/advice to Proxilogica's leadership.
For more information:
LEAN Systems LP
contact@LEAN-Systems.ca
www.lean-systems.ca
VIDEO: Russia's Vertical Farm Experiment
"Such technological progress gives the possibility of having 3 harvests in a year.” When #Covid19 restrictions caused border closures with Russia, scientists in Moscow developed these LED-powered vertical farms to solve import problems
June 9, 2021
"Such technological progress gives the possibility of having 3 harvests in a year.” When #Covid19 restrictions caused border closures with Russia, scientists in Moscow developed these LED-powered vertical farms to solve import problems (Source: Quicktake)
When COVID-19 restrictions caused border closures with Russia, scientists in Moscow developed these LED-powered vertical farms to solve import problems. The imported products were received in a bad condition. "We started substituting imports by turning to vertical farming," she said.
Click on the video below to get to know more about the farm.
Green Skyscrapers That Add A Touch of Nature + Sustainability To Modern Architecture!
Polish designers Pawel Lipiński and Mateusz Frankowsk created The Mashambas Skyscraper, a vertical farm tower, that is in fact modular!
06/09/2021
Skyscrapers have taken over most of the major cities today. They’re symbols of wealth and power! And most of the skylines today are adorned with glistening glass skyscrapers. They are considered the face of modern architecture. Although all that glass and dazzle can become a little tiring to watch. Hence, architects are incorporating these tall towers with a touch of nature and greenery! The result is impressive skyscrapers merged with an element of sustainability. These green spaces help us maintain a modern lifestyle while staying connected to nature. We definitely need more of these green skyscraper designs in our urban cities!
Zaha Hadid Architects designed a pair of impressive skyscrapers that are linked by planted terraces, for Shenzhen, China. Named Tower C, the structure is 400 metres in height and is supposed to be one of the tallest buildings in the city. The terraces are filled with greenery and aquaponic gardens! They were built to be an extension of a park that is located alongside the tower and as a green public space.
Polish designers Pawel Lipiński and Mateusz Frankowsk created The Mashambas Skyscraper, a vertical farm tower, that is in fact modular! The tower can be assembled, disassembled and transported to different locations in Africa. It was conceptualised in an attempt to help and encourage new agricultural communities across Africa. The skyscraper would be moved to locations that have poor soil quality or suffer from droughts, so as to increase crop yield and produce.
The Living Skyscraper was chosen among 492 submissions that were received for the annual eVolo competition that has been running since 2006. One of the main goals of the project is to grow a living skyscraper on the principle of sustainable architecture. The ambitious architectural project has been envisioned for Manhattan and proposes using genetically modified trees to shape them into literal living skyscrapers. It is designed to serve as a lookout tower for New York City with its own flora and fauna while encouraging ecological communications between office buildings and green recreation centers. The building will function as a green habitable space in the middle of the concrete metropolis.
ODA’s explorations primarily focus on tower designs, in an attempt to bring versatility and a touch of greenery to NY’s overtly boxy and shiny cityscape. Architectural explorations look at residential units with dedicated ‘greenery zones’ that act as areas of the social congregation for the building’s residents. Adorned with curvilinear, organic architecture, and interspersed with greenery, these areas give the residents a break from the concrete-jungle aesthetic of the skyscraper-filled city. They act as areas of reflection and of allowing people to connect with nature and with one another.
Heatherwick Studio built a 20-storey residential skyscraper in Singapore called EDEN. Defined as “a counterpoint to ubiquitous glass and steel towers”, EDEN consists of a vertical stack of homes, each amped with a lush garden. The aim was to create open and flowing living spaces that are connected with nature and high on greenery.
Designed by UNStudio and COX Architecture, this skyscraper in Melbourne, Australia features a pair of twisting towers placed around a ‘green spine’ of terraces, platforms, and verandahs. Called Southbank by Beulah, the main feature of the structure is its green spine, which functions as the key organizational element of the building.
Mad Arkitekter created WoHo, a wooden residential skyscraper in Berlin. The 98-meter skyscraper will feature 29 floors with different spaces such as apartment rentals, student housing, a kindergarten, bakery, workshop, and more. Planters and balconies and terraces filled with greenery make this skyscraper a very green one indeed!
Algae as energy resources are in their beginnings and are seen as high potential. Extensive research work has dealt with algae as an energy source in recent decades. As a biofuel, they are up to 6 times more efficient than e.g. comparable fuels from corn or rapeseed. The Tubular Bioreactor Algae Skyscraper focuses on the production of microalgae and their distribution using existing pipelines. Designed by Johannes Schlusche, Paul Böhm, Raffael Grimm, the towers are positioned along the transalpine pipeline in a barren mountain landscape. Water is supplied from the surrounding mountain streams and springs, and can also be obtained from the Mediterranean using saltwater.
Tesseract by Bryant Lau Liang Cheng proposes an architecture system that allows residents to participate in not just the design of their own units; but the programs and facilities within the building itself. This process is inserted between the time of purchase for the unit and the total time required to complete construction – a period that is often ignored and neglected. Through this process, residents are allowed to choose their amenities and their communities, enhancing their sense of belonging in the process. Housing units will no longer be stacked in repetition with no relation whatsoever to the residents living in it – a sentimental bond between housing and men results.
In a world devoid of greenery, Designers Nathakit Sae-Tan & Prapatsorn Sukkaset have envisioned the concept of Babel Towers, mega skyscrapers devoted to preserving horticultural stability within a single building. The Babel towers would play an instrumental role in the propagation of greenery in and around the area. These towers would also become attraction centers for us humans, like going to a zoo, but a zoo of plants. Seems a little sad, saying this, but I do hope that we never reach a day where the Babel Tower becomes a necessity. I however do feel that having towers like these now, in our cities, would be a beautiful idea. Don’t you think so too?
Farm Tech Startup Iron Ox Appoints Impossible Foods and Tesla Veteran Rachel Konrad as First Independent Board Member
Iron Ox growing facilities use advanced robotics to precisely cultivate perfect, nutritious produce by giving each plant the specific attention it needs, and then getting it on a store shelf nearby within about a day of harvest
-- Konrad, who spent the past five years at Impossible Foods, joins the board of Iron Ox during a period of rapid manufacturing scale-up and retail expansion.
-- Iron Ox growing facilities use advanced robotics to precisely cultivate perfect, nutritious produce by giving each plant the specific attention it needs, and then getting it on a store shelf nearby within about a day of harvest.
-- The Series B-stage company, whose products are already a breakout seller in California, is also hiring plant scientists, engineers, greenhouse operators, and roboticists.
SAN CARLOS, Calif., June 10, 2021 /PRNewswire/ -- Iron Ox, a farming innovation company with deep expertise in robotics and artificial intelligence, has appointed former Impossible Foods and Tesla executive Rachel Konrad as its first independent board member. This appointment further demonstrates the food tech startup's growth trajectory as they scale up operations and expand their commercial footprint.
Iron Ox, which launched the world's first autonomous farm, has an industry-leading intellectual property portfolio to automate farming and produce that's fresher, cleaner, and locally grown. Thanks to the company's groundbreaking robotics, Iron Ox farms require 90% less water than traditional farms — generating 30 times more produce per acre of land.
Konrad joins Iron Ox after spending the past five years as Chief Communications Officer and a member of the senior leadership team at Impossible Foods, reporting directly to CEO Pat Brown. She previously held senior management roles at Renault-Nissan-Mitsubishi and Tesla, where she reported directly to Elon Musk as the company scaled up operations.
"We can't solve our planet's climate crisis without radical changes to the way we make food," said Konrad, who lives in the San Francisco Bay Area and enjoys cooking for her family and hiking with her rescue German Shepherd. "Iron Ox's intellectual property portfolio can usher in a new era of farming that produces food sustainably and ethically. But honestly, I was sold after my first whiff of Iron Ox basil."
"Rachel understands the unique power of disruptive startups to shift entire industries and force even the most entrenched incumbents to do the right thing for people and the planet," said Brandon Alexander, Iron Ox CEO and Co-Founder. "Her unique perspective will help Iron Ox refine and execute our ambitious strategy. As our first independent board member, we expect Rachel to help us set a new standard for inclusive governance in corporate America."
The Series B-stage company operates farms in Northern California and recently broke ground on a new 535,000 sq. ft. indoor farm in Lockhart, Texas. Today, California consumers can buy Iron Ox food throughout California at Whole Foods and at San Francisco Bay Area's upscale Biancchini's markets. Sales in Texas are expected to begin in late 2021.
The company is also hiring plant scientists, engineers, greenhouse operators and roboticists who are passionate about solving food insecurity, which is at the root of our environmental and public health crises.
For more information, and to view the job openings, visit the Iron Ox jobs page.
About Iron Ox:
Iron Ox is a farming innovation company with deep expertise in robotics and artificial intelligence, and a vision to solve global climate through food. Their approach redesigns every step of the farming process, achieving levels of precision that are impossible through traditional farming. Iron Ox produce is both local and sustainable by design, greatly reducing systemic food waste and minimizing the ecological impact of farming. For more information, visit www.ironox.com.
SOURCE: Iron Ox
Scottish Agritech Business IGS Appoints First CFO To Enhance Leadership Team And Support Global Expansion
With many countries developing national food security strategies there is an increasing emphasis on sustainable food production
Appointment of Sarah Willis Will Bolster Readiness For Rapid Growth
Edinburgh, Scotland – 31 May 2021 – Intelligent Growth Solutions (IGS), the Edinburgh-headquartered agritech business, continues to enhance its executive talent as it welcomes Sarah Willis into the role of Chief Financial Officer. Sarah’s appointment reflects the company’s need for substantial transactional and commercial financial experience to support IGS’ global growth strategy in the vertical farming market.
With many countries developing national food security strategies there is an increasing emphasis on sustainable food production. This is driving a rapid maturing of the vertical farming industry, generating significant levels of momentum from customers, consumers, and investors. IGS’s strategic position fits very well with these developments enabling the company to enter multiple regional markets this year.
Sarah’s role will be pivotal as the company looks to expand its operating base over the coming 12 months, ensuring operational support, corporate governance, and reporting structures are fit for purpose. She will be responsible for the company’s financial management, HR, admin support, and new office development, working closely with IGS CEO David Farquhar and the Board.
Sarah joins IGS from Spirit Energy, where, as Head of Finance Operations, she was responsible for the financial integrity of the company which generated over £1bn of revenues. Prior to that, Sarah was in senior management overseeing operational and financial performance at Centrica E&P in the UK and Europe. Sarah is a qualified Chartered Accountant, starting her career with KPMG and latterly Deloitte in Aberdeen, before joining Wood.
Working with highly regulated industries throughout her career, Sarah brings a strong commitment to due diligence, risk management and governance. She brings broad, multi-national M&A experience which will boost IGS’ ability to roll out across its global markets. Her financial and stakeholder management experience will further enhance the relationship with the IGS investment and shareholder community helping transition to a capacity expansion phase in this exciting industry.
Talking about her decision to join IGS, Sarah commented: “The opportunity to be part of a business like IGS is really exciting. The combination of the talented team, the incredibly innovative technology, and the prodigious industry growth was compelling for me.
“The company has achieved remarkable progress to date, reflecting its purposeful approach and hugely passionate team. I believe strongly in the guardianship of the planet – we must leave it in a better place for the next generation - and businesses like IGS are genuinely committed to this belief and have embedded this in its approach so well. I am delighted that I can be part of this ambitious team to help support a positive evolution in food production for the future.”
David Farquhar commented: “Sarah is a hugely welcome addition to the leadership team at IGS, as we seek to further diversify and expand the talent across our organization. She joins our business at a crucial and pivotal point in our evolution, bringing us a fresh perspective from the energy industry particularly, whilst expanding her own capabilities and leadership skills in her first CFO role.
David continued: “The IGS growth curve is steepening sharply and Sarah’s appointment demonstrates our commitment to deliver optimum results for our investors, customers, and partners. Sarah’s international experience is world-class, given her career in highly regulated, quoted companies across multiple geographies. Her leadership will be vital in helping us efficiently manage significant expansion.”
Sarah graduated from the University of Edinburgh and Dauphine Université de Paris where she studied International Business with French. Sarah is an advocate of diversity in its many forms and was involved closely in supporting Spirit Energy’s initiatives to create a more inclusive culture across the oil and gas industry.
Sarah is based in Aberdeen where she lives with her husband and daughter. A fluent French speaker, she is also very interested in music and plays golf.
Ends
Notes to editors:
For more information: please contact Kate Forster or Georgia Lea, IGS, on either kate@intelligentgrowthsolutions.com / +44 7787 534 999 or georgia@intelligentgrowthsolutions.com / +44 7897 539 954.
About Intelligent Growth Solutions (IGS):
Founded in 2013, IGS brought together decades of farming and engineering experience to create an agritech business with a vision to revolutionise the indoor growing market. Its commitment to innovation has continued apace and it has evolved the applications of its technology beyond indoor agriculture to create solutions for a wide variety of farming applications which enhance life for plants and people alike.
IGS launched its first vertical farm crop research centre in August 2018.
For more information visit www.intelligentgrowthsolutions.com or connect with us on Twitter and LinkedIn.
North America’s Indoor Farms Plan To Add 500-Plus Acres Over Next 5 Years
“Now that the market has established itself, you’re going to see a lot of technology in the next few years come on to the market. New hardware, new sensors, new control systems, new lighting, new physical structures, new growing system automation, robotics, AI — you name it.”
June 7, 2021 Lauren Manning
Indoor farming analytics provider Artemis has just released its annual State of Indoor Farming report, which reflects a survey of 205 enterprise horticulture facilities across the US and Canada. Put together in partnership with research firm Startle, the report’s goal is to assess where the region’s industry is today – as well as giving growers a voice around the latest trends, challenges, and opportunities it presents.
It covers everything from container farms to high-tech glass greenhouses and vertical farms.
“One thing we did this year that was different from last time was asking things like, ‘How are you actually getting capital? How are you getting contracts with buyers? How did the mechanics work to make sure that you can actually expand and build projects?'” Artemis co-founder and CEO Allison Kopf tells AFN.
“There are some really interesting tidbits that might go unnoticed, like the small number of people who indicated that part of their expansion plan includes packing operations. I think this is probably driven by Covid-19 and the supply chain holes that we saw. Doing more on-site packing and increasing on-site capacity is very different from field ag.”
A few other notable findings from the report include:
77% of respondents are growing multiple crops while 23% are growing a single crop.
The three most commonly cultivated crops indoors are leafy greens (26% of total), herbs (20%), and microgreens (16%). Tomatoes (10%), cucumbers (8%), peppers (8%), ornamentals (6%), and strawberries (6%) round out the list.
The average revenue reported by growers selling the leading indoor crop, leafy greens, is $7.82 per pound.
Inputs remain one of the biggest drivers of operational costs for indoor growers with average annual costs for seeds ($24,989), grow media ($19,190), and nutrients ($17,510) among the most expensive.
Retail and grocery outlets (28%) remain the dominant sales channel for indoor growers, followed by direct-to-consumer outlets (26%) and wholesale accounts (17%).
Indoor growers are also eager to expand their footprints. Roughly three-quarters have expansion plans that they aim to execute in the next five years. If they are successful in their endeavors, they’ll add a predicted 544 acres to North America’s indoor farming industry.
Technology adoption indoors
The indoor farming industry has a big appetite for technology, according to the Artemis report. Just over a third of respondents are using mainly tablets and mobile phones to run their daily operations, with 24% using desktop computers. Six percent have adopted barcode scanners.
When considering new technologies, 39% of indoor growers are eager to find solutions to manage operations more efficiently. Lowering the cost of production (20%) and increasing yields (19%) are also high on the tech discovery list.
Investing in technology and understanding it is a critical ingredient for success, according to Kopf.
“Now that the market has established itself, you’re going to see a lot of technology in the next few years come on to the market. New hardware, new sensors, new control systems, new lighting, new physical structures, new growing system automation, robotics, AI — you name it,” she says.
But the increase in choice comes with its own problems. Some growers may find themselves overwhelmed by the flood of new offerings, or lack the time to research the optimal products for them.
“Being able to find the right stuff to operate the facility the way you want for the crops that you are growing is going to be really, really critical. [Tech vendors] that differentiate based on product are going to stand above the rest,” Kopf suggests.
This could include products that help indoor farms prove they are carbon neutral or negative, opening up a new world of branding and marketing opportunities.
Advancements in breeding technology are also starting to open the door to new types of crop cultivation. As developments in genetics unlock the right varieties for indoor conditions, the industry will be better equipped to move beyond leafy greens and herbs.
Suited for public markets
As more indoor farming startups raise substantial rounds or take their companies public — like AppHarvest and Aerofarms have done recently through SPAC mergers — questions are bubbling up around whether the momentum can last.
For Kopf, the fact that indoor farms are producing tangible products differentiates them from some of the other hyped subsectors within agrifoodtech. Indoor farming operations can also involve substantial physical infrastructure, making them well suited for public markets, she says – while they can also tick the increasingly important ESG box for investors. As a result, she sees more SPAC deals and IPOs on the horizon.
There’s also room left for indoor farming to expand in certain geographies where massive consumer markets await.
“If you look at the Netherlands or Spain, markets where greenhouse production is commonplace, we’re really behind in the US. If you’ve got plenty of room to grow – that changes the dynamic,” Kopf says.
“I don’t think we are anywhere near where we will be in the next five to 10 years, which to me indicates you’re not in a bubble. You’re in the early stages of a transitional period for an industry as a whole.”
