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USA - KENTUCKY: AppHarvest Announces Ground-Breaking For Fourth And Fifth High-Tech Indoor Farms
The high-tech Somerset farm marks the company’s expansion into growing berry crops. The Somerset indoor farm will be 30 acres
The Company’s Newest Large-Scale Controlled Environment Facilities, Located In Somerset and Morehead, Ky., Will Grow Strawberries And Leafy Greens, Respectively
June 21, 2021
Source: AppHarvest
MOREHEAD, Ky., June 21, 2021 (GLOBE NEWSWIRE) -- AppHarvest, Inc. (NASDAQ: APPH, APPHW), a leading AgTech company, public benefit corporation and Certified B Corp focused on farming more sustainably using up to 90% less water than open-field agriculture and only recycled rainwater, today announced the start of construction for two new high-tech indoor farms in Central Appalachia. The company’s new farms, located in Somerset and Morehead, Ky., will grow berries and leafy greens, respectively.
The high-tech Somerset farm marks the company’s expansion into growing berry crops. The Somerset indoor farm will be 30 acres.
The high-tech Morehead, Ky. farm is the second AppHarvest farm in Rowan County to date. The new Morehead facility will produce leafy greens and will be about 15 acres.
AppHarvest’s newest indoor farms in Morehead and Somerset are preceded by the company’s flagship 2.76-million-square-foot facility growing tomatoes in Morehead; a 15-acre facility in Berea that will grow leafy greens; and a 60-acre facility in Richmond that will grow vine crops.
"These new facilities place us exactly where we want to be at the forefront of AgTech. With today’s dual announcement, we put ourselves ahead of our development schedule,” said AppHarvest Founder & CEO Jonathan Webb. “Our Somerset and Morehead farms will build on the success of our flagship farm to provide higher quality produce using cutting-edge technology at a large scale.”
AppHarvest’s goal is to operate 12 high-tech indoor farms by the end of 2025, and today’s announcement means five of those now have been put on the map. Construction for both the Somerset and Morehead facility is anticipated to finish by the end of 2022.
“AppHarvest has positioned Kentucky as a leader in the AgriTech industry, created hundreds of good-paying jobs for our people and pushed through and thrived during some of our most difficult times,” said Gov. Beshear. “Even as a pandemic raged, Jonathan Webb and his team built one of the biggest indoor farming operations anywhere using one of the most advanced LED-lighting systems ever created. We know the jobs and investments of the future will flow to those who can meet these challenges, so why not us? AppHarvest is making it happen.” AppHarvest’s newest facilities will provide hundreds of well-paying jobs to Eastern Kentuckians in and around Somerset-Pulaski and Rowan Counties.
Both the Somerset-Pulaski and Rowan County facilities will produce non-GMO fruits and vegetables free of harsh chemical pesticides, to be distributed to top U.S. grocers and restaurants. Because of the company’s strategic location in Appalachia, AppHarvest can reach nearly 70% of the U.S. population in a day’s drive, with up to 80% less diesel fuel compared to existing growers in Mexico and the Southwestern U.S.
Supporting Quotes
Congressman Hal Rogers: “I am excited to welcome AppHarvest to Pulaski County and the Lake Cumberland area. Our rich farming history and skilled workforce makes southern Kentucky a prime partner for this innovative AgTech industry. As AppHarvest expands efforts to farm for our future, they are also inspiring a new generation of ingenuity and stellar work ethic that will benefit our region for generations to come.”
Somerset Mayor Alan Keck: “AppHarvest is breaking ground literally and imaginatively across Southern and Eastern Kentucky, and the company’s record growth creates a beautiful synergy with the record growth we are seeing in Somerset and Pulaski County. We share a vision for what this community and this region of Kentucky can become, that it can grow and thrive with the right nurturing and investment. We are thrilled AppHarvest chose Somerset and Pulaski County to expand and are honored to partner with this visionary company.”
Morehead Mayor Laura White-Brown: “This groundbreaking continues to highlight the progression of Eastern Kentucky and Appalachia. AppHarvest continues to pave the way for communities in this region by contributing to the workforce and economic development and at the same time helping to combat world hunger.”
Pulaski County Judge-Executive Steve Kelley: "What an exciting time this is to witness up-close an industry disruption. Who would have imagined that Southern and Eastern Kentucky could be an industry leader in produce supply? With AppHarvest’s vision and determination, we have that chance. We welcome AppHarvest to our county with open arms, and we can’t wait to see its prosperity here. It is victories like these that make me proud of my county."
About AppHarvest
AppHarvest is an applied technology company building some of the world’s largest high-tech indoor farms in Appalachia that grow non-GMO, chemical pesticide-free produce using up to 90% less water than open-field agriculture and only recycled rainwater while producing yields up to 30 times that of traditional agriculture on the same amount of land with zero agricultural runoff. The Company combines conventional agricultural techniques with cutting-edge technology including artificial intelligence and robotics to improve access for all to nutritious food, farming more sustainably, building a domestic food supply, and increasing investment in Appalachia. The Company’s 60-acre Morehead, Ky. facility is among the largest controlled environment agriculture facilities in the U.S. For more information, visit https://www.appharvest.com/.
Forward-Looking Statements
Certain statements included in this press release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. All statements, other than statements of present or historical fact included in this press release, regarding Novus Capital’s proposed acquisition of AppHarvest, Novus Capital’s ability to consummate the transaction, the benefits of the transaction and the combined company’s future financial performance, as well as the combined company’s growth plans and strategy, future operations, estimated financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of AppHarvest’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on as, a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of AppHarvest. These forward-looking statements are subject to a number of risks and uncertainties, including those discussed in Novus Capital’s registration statement on Form S-4, filed with the SEC on October 9, 2020 (the “Registration Statement”), under the heading “Risk Factors,” and other documents Novus Capital has filed, or will file, with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. In addition, forward-looking statements reflect AppHarvest’s expectations, plans, or forecasts of future events and views as of the date of this press release. AppHarvest anticipates that subsequent events and developments will cause its assessments to change. However, while AppHarvest may elect to update these forward-looking statements at some point in the future, AppHarvest specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing AppHarvest’s assessments of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.
Important Information for Investors and Stockholders
In connection with the proposed transaction, Novus Capital has filed the Registration Statement with the SEC, which includes a preliminary proxy statement to be distributed to holders of Novus Capital’s common stock in connection with Novus Capital’s solicitation of proxies for the vote by Novus Capital’s stockholders with respect to the proposed transaction and other matters as described in the Registration Statement, as well as the prospectus relating to the offer of securities to be issued to AppHarvest’s stockholders in connection with the proposed transaction. After the Registration Statement has been declared effective, Novus Capital will mail a definitive proxy statement, when available, to its stockholders. Investors and security holders and other interested parties are urged to read the proxy statement/prospectus, any amendments thereto and any other documents filed with the SEC carefully and in their entirety when they become available because they will contain important information about Novus Capital, AppHarvest and the proposed transaction. Investors and security holders may obtain free copies of the preliminary proxy statement/prospectus and definitive proxy statement/prospectus (when available) and other documents filed with the SEC by Novus Capital through the website maintained by the SEC at http://www.sec.gov, or by directing a request to: Novus Capital Corporation, 8556 Oakmont Lane, Indianapolis, IN 46260. The information contained on, or that may be accessed through, the websites referenced in this press release is not incorporated by reference into, and is not a part of, this press release.
Participants in the Solicitation
Novus Capital and its directors and officers may be deemed participants in the solicitation of proxies of Novus Capital’s shareholders in connection with the proposed business combination. Security holders may obtain more detailed information regarding the names, affiliations and interests of certain of Novus Capital’s executive officers and directors in the solicitation by reading the Registration Statement and other relevant materials filed with the SEC in connection with the business combination when they become available. Information concerning the interests of Novus Capital’s participants in the solicitation, which may, in some cases, be different than those of their stockholders generally, is set forth in the Registration Statement.
MEDIA CONTACT: blair.carpenter@appharvest.com
INVESTOR CONTACT: kaveh.bakhtiari@appharvest.com
IMAGE/VIDEO GALLERY: Available here
Vertical Farm Merger Valued At $1.1 Billion
Strategic partners include food and agriculture industry giant Cargill and Sarath Ratanavadi, CEO of Gulf Energy Development Public Company Limited – Thailand’s largest private energy and infrastructure company and one of the world’s leaders in sustainable energy
June 18, 2021
HAMILTON, Mont.–(BUSINESS WIRE)–Breakthrough U.S. indoor agriculture company Local Bounti Corporation (Local Bounti) has agreed to go public through a merger with Leo Holdings III Corp. (Leo or Leo Holdings) (NYSE: LIII), a publicly-traded special purpose acquisition company, pursuant to a definitive business combination agreement. The transaction values the combined company at an equity value of $1.1 billion (assuming no redemptions) and upon closing of the transaction, the combined company is expected to remain listed on the New York Stock Exchange under the symbol “LOCL”.
Strategic partners include food and agriculture industry giant Cargill and Sarath Ratanavadi, CEO of Gulf Energy Development Public Company Limited – Thailand’s largest private energy and infrastructure company and one of the world’s leaders in sustainable energy – which are investing in the combined company through a private investment in public equity (PIPE) arrangement. Cargill is also expected to provide $200 million in debt financing to accelerate Local Bounti’s expansion plans. Local Bounti plans to use the capital to build local strategically-located indoor farming facilities across the Western U.S. to provide fresh, superior-tasting, long-lasting and sustainably-grown produce with minimal carbon footprint.
Local Bounti Investment Highlights
Superior unit economics, with high yield and low-cost operations, enabled by unique hybrid facility configuration that addresses the challenges of conventional greenhouse and vertical farming
Producing leafy greens today at initial facility with pipeline to grow to eight facilities and the company expects to have over 30 SKUs by the end of 2025, which extends Local Bounti’s penetration, beginning in the largely untapped Western U.S. market
Superior brand and product that is local and sustainable across a growing number of SKUs, currently in more than 400 retail stores, including Associated Food Stores and URM served retail banners such as Rosauers, Super 1 Foods and Yoke’s
Strong commitment to Environmental, Social and Governance (ESG) practices and standards, including an executive team member who is Global Reporting Initiative (GRI)-certified to ensure aggressively transparent reporting per GRI and Sustainability Accounting Standards Board
Best-in-class, established management team of seasoned veterans at scaling early-stage companies, with Fortune 500 and public company experience
“Today’s announcement takes Local Bounti to the next level in enabling local, sustainable production and delivery of fresh, delicious and nutritious produce, including in regions that traditionally don’t have access to local supply, starting in the Western U.S. and expanding globally,” said Local Bounti Co-Founder and Co-CEO Craig Hurlbert. Based on publicly available market research on CEA, Local Bounti believes the current Western U.S. market opportunity is approximately $10.6 billion, and estimates that the total U.S. market for vegetables and herbs will reach up to $30 billion by 2025.
“We look forward to leveraging our proven business model as we accelerate the building of cutting-edge local production facilities that feature our proprietary IP, referred to as Stack & Flow Technology™, and transforming conventional agriculture practices for the benefit of all our customers, no matter where in the world they’re located,” he said, adding that the company’s growth plans include adding seven new facilities and local leadership in different geographic regions, as well as global expansion of its proprietary technology.
An industry disruptor changing the way food is grown and re-imagining the Farm of the Future™, Local Bounti is a premier controlled environment agriculture (CEA) company redefining ESG standards for indoor agriculture. The company’s unique business model is based on building local facilities, operated by local teams, to deliver the freshest and highest quality produce to local communities while maintaining a limited carbon footprint. Using proprietary technology to grow leafy greens and herbs in a smart, indoor controlled environment – and with a cultivation process that uses 90 percent less water and land than conventional agriculture, free from herbicides or pesticides – Local Bounti delivers high-quality produce that not only has a longer shelf life, but is also superior in taste.
“Local Bounti is set to be a transformational force in the AgTech industry with its demonstrated concept and model in food production and distribution,” said Lyndon Lea, President and CEO of Leo. “Combining Local Bounti’s emphasis on innovation, entrepreneurial spirit, and technology-driven approach with the institutional knowledge of the Leo Holdings team, we are confident in the company’s ability to expand in both reach and consumer offerings.”
Leveraging its innovative proprietary modular and scalable building system, which is designed to easily and efficiently replicate the company’s sustainable indoor farm model, Local Bounti is more than doubling the size of its flagship facility in Hamilton, Montana, and plans to break ground on additional facilities in the Western U.S. before the end of this year.
To learn more about Local Bounti’s unique growing process, diversified product offerings and experienced leadership team, please visit localbounti.com.
Transaction Overview
As a result of the transaction with Leo, Local Bounti will receive up to $400 million in gross proceeds (assuming no redemptions), including $125 million from a fully committed PIPE anchored by existing investors and new investors, including Fidelity Management & Research Company LLC, BNP Paribas Asset Management Ecosystem Restoration Fund and Cargill.
The Boards of Directors of Local Bounti and Leo unanimously approved the transaction, and the transaction will require the approval of the stockholders of both Local Bounti and Leo and is subject to other customary closing conditions. The transaction is expected to close in the second half of 2021.
Additional information about the proposed transaction, including a copy of the merger agreement and investor presentation, will be provided in a Current Report on Form 8-K to be filed by Leo Holdings III with the Securities and Exchange Commission (SEC) and will be available at www.sec.gov. For materials and information, visit the investor section of www.leoholdings.com for Leo, which can be found HERE.
Advisors
Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc., and Nomura Securities International, Inc. served as placement agents on the PIPE and Debevoise & Plimpton LLP served as legal advisor to the placement agents. Kirkland & Ellis LLP served as legal advisor to Leo. Morgan Stanley & Co. LLC and Nomura Greentech served as financial advisors to Local Bounti and Orrick Herrington & Sutcliffe LLP served as legal advisor to Local Bounti.
About Local Bounti
Local Bounti is a premier controlled environment agriculture (CEA) company redefining conversion efficiency and environmental, social and governance (ESG) standards for indoor agriculture. The company operates an advanced indoor growing facility in Hamilton, Montana, within a few hours’ drive of its retail and food service partners. Reaching retail shelves in record time post-harvest, Local Bounti produce is superior in taste and quality compared to traditional field-grown greens. The company’s USDA Harmonized Good Agricultural Practices (GAP Plus+) and non-genetically modified organisms (GMO) produce is sustainably grown using proprietary technology 365 days a year, free of pesticides and herbicides, and using 90 percent less land and water than conventional outdoor farming methods. With a mission to ‘bring our farm to your kitchen in the fewest food miles possible,’ Local Bounti is disrupting the cultivation and delivery of produce. The company is also committed to making meaningful connections and giving back to each of the communities it serves. To find out more, visit localbounti.com or follow the company on LinkedIn for the latest news and developments.
About Leo Holdings III Corp and Leo Holdings
Leo Holdings III Corp is a special purpose acquisition company (SPAC) that seeks to invest in entrepreneurially driven growth companies that seek to disrupt existing industries or business models. The management team has extensive experience owning and operating businesses on a global scale through its private equity vehicle, Lion Capital. Leo Holdings’ management team has collaboratively worked together for over 20 years.
Leo Holdings III Corp is part of a special purpose acquisition company initiative, Leo Holdings, which is focused on investing in disruptive, innovative business models. The initiative seeks businesses positioned to thrive in the evolving digital information age where changing consumer behavior creates the opportunity for outsized returns. In 2020, Leo Holdings Corp entered into a business combination with DMS, a disruptive performance marketing business which delivers high-intent customers while de-risking client advertising spend. Leo Holdings Corp II (LHC) and Leo Holdings III Corp (LIII) are currently listed on the NYSE.
Leo Holdings was formed by the principals of Lion Capital, which is led by Founder and Managing Partner, Lyndon Lea. For more information, visit https://leoholdings.com/.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements included in this Press Release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of other financial and performance metrics and projections of market opportunity. These statements are based on various assumptions, whether or not identified in this Press Release, and on the current expectations of Local Bounti’s and Leo’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Local Bounti and Leo. These forward-looking statements are subject to a number of risks and uncertainties, including changes in domestic and foreign business, market, financial, political and legal conditions; the inability of the parties to successfully or timely consummate the proposed transaction, including the risk that any required regulatory approvals are not obtained, are delayed or are subject to unanticipated conditions that could adversely affect the combined company or the expected benefits of the proposed transaction or that the approval of the stockholders of Leo or Local Bounti is not obtained; failure to realize the anticipated benefits of the proposed transaction; risks relating to the uncertainty of the projected financial information with respect to Local Bounti; the effects of competition on Local Bounti’s future business; the impact of the COVID-19 pandemic on Local Bounti’s business; the ability of Leo or the combined company to issue equity or equity-linked securities or obtain debt financing in connection with the proposed transaction or in the future, and those factors discussed in Leo’s final prospectus dated February 25, 2021 under the heading “Risk Factors,” and other documents of Leo filed, or to be filed, with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that none of Leo or Local Bounti presently know or that Leo or Local Bounti currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Leo’s and Local Bounti’s expectations, plans or forecasts of future events and views as of the date of this Press Release. Leo and Local Bounti anticipate that subsequent events and developments will cause Leo’s and Local Bounti’s assessments to change. However, while Leo and Local Bounti may elect to update these forward-looking statements at some point in the future, Leo and Local Bounti specifically disclaim any obligation to do so. These forward-looking statements should not be relied upon as representing Leo’s and Local Bounti’s assessments as of any date subsequent to the date of this Press Release. Accordingly, undue reliance should not be placed upon the forward-looking statements. Certain market data information in this Press Release is based on the estimates of Local Bounti and Leo management. Local Bounti and Leo obtained the industry, market and competitive position data used throughout this Press Release from internal estimates and research as well as from industry publications and research, surveys and studies conducted by third parties. Local Bounti and Leo believe their estimates to be accurate as of the date of this Press Release. However, this information may prove to be inaccurate because of the method by which Local Bounti or Leo obtained some of the data for its estimates or because this information cannot always be verified due to the limits on the availability and reliability of raw data, the voluntary nature of the data gathering process.
Important Information
In connection with the proposed transaction, Leo intends to file a registration statement on Form S-4, including a proxy statement/prospectus (the “Registration Statement”), with the SEC, which will include a preliminary proxy statement to be distributed to holders of Leo’s ordinary shares in connection with Leo’s solicitation of proxies for the vote by Leo’s shareholders with respect to the proposed transaction and other matters as will be described in the Registration Statement, and a prospectus relating to, among other things, the offer of the securities to be issued to Local Bounti’s stockholders in connection with the proposed transaction. After the Registration Statement has been declared effective, Leo will mail a definitive proxy statement/prospectus, when available, to its shareholders. Investors and security holders and other interested parties are urged to read the proxy statement/prospectus, and any amendments thereto and any other documents filed with the SEC when they become available, carefully and in their entirety because they contain important information about Leo, Local Bounti and the proposed transaction. Investors and security holders may obtain free copies of the preliminary proxy statement/prospectus and definitive proxy statement/prospectus (when available) and other documents filed with the SEC by Leo through the website maintained by the SEC at http://www.sec.gov. These documents (when they are available) can also be obtained free of charge from Leo upon written request to Leo by emailing brown@leo.holdings or by directing a request to Leo’s secretary at c/o Leo Holdings III Corp, 21 Grosvenor Pl, London SW1X 7HF, United Kingdom.
Participants in the Solicitation
Leo and Local Bounti and their respective directors and certain of their respective executive officers and other members of management and employees may be considered participants in the solicitation of proxies with respect to the proposed transaction. Information about the directors and executive officers of Leo in its final prospectus dated February 25, 2021. Additional information regarding the participants in the proxy solicitation and a description of their direct interests, by security holdings or otherwise, will be set forth in the Registration Statement and other relevant materials to be filed with the SEC regarding the proposed transaction. Stockholders, potential investors, and other interested persons should read the Registration Statement carefully before making any voting or investment decisions. These documents, when available, can be obtained free of charge from the sources indicated above.
No Offer or Solicitation
This communication is for informational purposes only and is not intended to and shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy or subscribe for any securities or a solicitation of any vote of approval, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, and otherwise in accordance with applicable law.
Research Signify And Fragaria Innova Into Growing Strawberries With LED Bears Fruits
“Extra growth light is needed to realize sufficient yield and quality in winter”, according to plant specialist Peer Hermans, who conducts the research on behalf of Signify
June 15, 2021
· Provides better steering of the plants
· Optimizes winter growth
· Helps growers realize a stabile production pattern with high yield and good quality strawberries
Eindhoven, the Netherlands – Signify (Euronext: LIGHT), the world leader in lighting, has worked together with Fragaria Innova to develop specific light recipes for strawberries, resulting in a steady production pattern with high yield, and good quality strawberries in wintertime. The joint research over the past year helps to further optimize the winter production of the so-called ‘June bearers’, a strawberry cultivar known for relatively short peaks in production.
Within Fragaria Innova, progressive strawberry growers commit themselves, together with external partners, to innovation surrounding the themes of growing under light and plant health. For growing under light, Fragaria Innova and market leader Signify conduct a multi-year program with participating growers/propagators. At one of the production companies, a special compartment has also been equipped with separate climate control, this enables the testing of several growth- and light strategies for multiple cultivars under full LED. One of the main goals of the research is realizing a (more) stable production pattern during wintertime.
Current winter productions usually take place with June bearers with a short production period of 8 to 10 weeks, after which a new planting in another section takes over production to create a stable, flat production. Unlit cultivation dominates before- and after the winter production.
“Extra growth light is needed to realize sufficient yield and quality in winter”, according to plant specialist Peer Hermans, who conducts the research on behalf of Signify. “The trials have shown that you can influence the plant build-up somewhat with specific light recipes, for which LED is ideally suited.” By accurately tuning the light intensity and spectrum offered to the developmental stage of the plant, you can optimize the leaf surface and stretching of the flower trusses and leaf stalks. A better plant build-up can benefit the production. The idea is to raise the production quality through light optimization.
Grower Marcel Dings from Brookberries, co-initiator behind Fragaria Innova, noticed some influence on the plant build-up, but the extra assimilates that came with it, went mostly to the crop and less to the fruits. Dings: “Next season will focus on how we can further optimize the division of the assimilates in the plant, and how we can get the assimilates to the fruits”. The grower notices that there are a lot of variables at play, such as: cultivars, planting times, cultivation goals, light spectra, light intensity, and the balance between natural daylight and artificial lighting. “The benefit of this new generation of LED grow lights is that we can play with lighting efficiently and that we can finetune the recipe to our own wishes and possibilities. Within this project, together we can achieve faster and more progress. I am satisfied with the results of this first year, but there is definitely room for further optimization. Hopefully, we can keep this going in the coming years.”
Grower Dave Linssen, a participant within Fragaria Innova (cultivar: Malling Centenary), had a trial with different spectra at one company location, planted in August just like his unlit crop. “The lit plants went into production earlier in winter, as expected. When it came to kilos and plant build-up, we hardly noticed any difference between the light spectra”, he concludes. “We may need to tinker a little to get the ideal light recipe for our company. It seems obvious to me that growing under LED is a desired addition.”
Based on these encouraging results, the trial set-up for the coming season will be determined. Spectrum research and testing different cultivars will be part of this research. For more information on growing strawberries with LED grow lights, please go to www.philips.com/horti.
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For further information, please contact:
Global Marcom Manager Horticulture at Signify
Daniela Damoiseaux
Tel: +31 6 31 65 29 69
E-mail: daniela.damoiseaux@signify.com
About Signify
Signify (Euronext: LIGHT) is the world leader in lighting for professionals and consumers and lighting for the Internet of Things. Our Philips products, Interact connected lighting systems and data-enabled services, deliver business value and transform life in homes, buildings and public spaces. With 2020 sales of EUR 6.5 billion, we have approximately 37,000 employees and are present in over 70 countries. We unlock the extraordinary potential of light for brighter lives and a better world. We achieved carbon neutrality in 2020, have been in the Dow Jones Sustainability World Index since our IPO for four consecutive years and were named Industry Leader in 2017, 2018 and 2019. News from Signify is located at the Newsroom, Twitter, LinkedIn and Instagram. Information for investors can be found on the Investor Relations page.
About Innoveins | Fragaria Innova
Innoveins is an ecosystem where organizations cooperate at the cross-over between plants and technology to develop innovations through co-creation and bring them to the market.
Within Innoveins, Fragaria Innova unites ambitious strawberry growers to jointly tackle challenges in the areas of labor, upscaling, efficiency, plant health and resilience, biodiversity, growth media, product quality, continuity, delivery reliability and smart farming.
Freight Farms And CEO Vanzura Set To Reinvent Container Farming
June 17, 2021
The global pressures exacerbated by COVID-19 and the rippling toll it takes on the international community has made one thing clear: preparedness is everything. The Coronavirus has exposed vulnerabilities in the global health network that no one could have imagined. Food production and distribution must now reset their agendas to prepare for catastrophe.
Freight Farms, a 2011 Agtech company that pioneered hydroponics-based container farming, is committed to preparing the world for the next disaster by reinventing the way we grow food.
“Fill in the blank with the institution, how prepared are you for the emerging trends that are impacting the world,” Freight Farms CEO Rick Vanzura explained. “Sustainability issues, land availability, water availability; those issues obviously preceded COVID-19, but we think there’s going to be a greater sense of urgency around folks expecting us to have an answer and be prepared for these global trends, as opposed to being reactive.”
Vanzura looks to channel his decade of experience as a restaurant executive, growing Wahlburgers from a single restaurant to a $100 million dollar institution, as well as greatly expanding Panera Bread, to redefine food production and distribution as a whole.
Freight Farms uses container-based “vertical farming” to do just that, allowing farmers to produce hundreds of high-quality local crops from a 320 square foot shipping container which automates the farming process for maximum efficiency.
Vanzura plans to expand and distribute these self-contained, sustainable farms to a wide diversity of industry segments. The priority will of course be the global communities that need them the most. “We see the Freight Farm as a perfect fit for countries with food access difficulties, short growing seasons and inherently challenging climates. There’s probably no location where having a hyper-local, highly traceable, always available solution isn’t going to make sense in some way,” he added.
In the name of access to high-quality food, in a sustainable model built to withstand a natural disaster, Freight Farms has now distributed their automated, hydroponic farms to 48 U.S states and across the world to 32 different countries, boasting success and efficiency from the Arctic wilderness, to the desert, and to concrete jungles.
Freight Farms believes that its emphasis on access, preparedness, and sustainability will be more necessary than ever in the wake of COVID-19, as well as global trends of food insecurity and environmental uncertainty. Vanzura explained that the company has already reacted to shifting demands by supporting small-scale farmers as they set up drive-through produce stations to reach customers directly.
Freight Farms CEO Rick Vanzura
“Demand during this time for that hyper-local, fresh product has certainly ramped up,” Vanzura added. “Hopefully, once people get a taste of it, they will understand the difference, and post Covid, our containers will become an industry staple.”
Vanzura sees his role as not only expanding to agriculturally vulnerable countries abroad but also increasing access to high-quality food across institutions in the United States. He wants to specifically target universities and has partnered with foodservice provider Sodexo to ensure local food is available to as many people as possible.
Vanzura says he was forced by his children to move beyond the world of crafting a restaurant chain’s vision and use his knowledge to make the world a better place. Freight Farms, with Vanzura’s leadership, has the ability to change the way we think of farming and change the world.
Freight Farms hopes to combat international uncertainty, face the threats of climate change, and provide people with fresh produce regardless of climatic constraints and difficulties. “Healthy food is a right, not a luxury,” and Freight Farms is helping make this mission statement a reality.
Lead photo: A Freight Farms container has unprecedented environmental control and exceptional ease-of-use to unlock your growing potential.
To learn more about Freight Farms and how they are reinventing container farming, visit their website.
Total Food Service is a monthly B2B foodservice publication and website covering foodservice and hospitality news, industry trends, and exclusive interviews.
Whose Roundtable Will You Join At Indoor AgTech, June 24-25?
Are you ready to debate hyper-local food systems, optimizing plant traits and the best approaches to grower and buyer partnerships?
Are you ready to debate hyper-local food systems, optimizing plant traits and the best approaches to grower and buyer partnerships? Take your pick of 34 roundtable discussions hosted by international agtech leaders at this month’s Indoor AgTech Innovation Summit.
A hugely popular part of the program, the small group breakouts offer a great opportunity to expand your network and engage with the topics most critical to you and your business. You’ll benefit from different viewpoints and fresh thinking, leaving with a wealth of valuable new connections.
Whose discussion group will you join? Places are limited and tables fill quickly, so be sure to save your seat on the virtual platform.
ROUNDTABLE HOSTS & TOPICS
JOIN THEM - REGISTER NOW
Over 500 of your industry colleagues are already busy networking and booking their sessions on the virtual summit platform so don't miss out - join them now.
Remember, the platform will be available 24/7 for a full month after the summit, so you can continue to network with delegates and rewatch all the sessions on demand.
We are looking forward to welcoming you online.
Oscar Brennecke
Conference Producer
Indoor AgTech Innovation Summit
oscar.brennecke@rethinkevents.com
+44 (0)1273 789989
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USA: MASSACHUSETTS - New Partnership Will Serve Meals For 400 Youth Per Day
Town to Table, a Boston-based container farm company, announced a partnership with the Boys & Girls Clubs of Metro South, an organization that accommodates kids in out-of-school-time hours
Town to Table, a Boston-based container farm company, announced a partnership with the Boys & Girls Clubs of Metro South, an organization that accommodates kids in out-of-school-time hoursy
Town to Table, a Boston-based container farm company, announced a partnership with the Boys & Girls Clubs of Metro South, an organization that accommodates kids in out-of-school-time hours.
"Together, we are operating two Freight Farms that will serve community members, food pantries, non-profits organizations, and the Clubs’ Kids Café Healthy Meals program which provides meals for 400 youth per day and serves more than 100,000 meals annually," said Town to Table on their LinkedIn page.
The farm will also be used as an educational resource to provide hands-on learning experiences for Club members with curricula-focused food systems, food justice, nutrition, and sustainability.
For more information:
Town to Table
https://towntotable.com
Boys & Girls Clubs of Metro South
Publication date: Fri 11 Jun 2021
Certhon Wraps Up 7th Raspberry Trial Successfully
After successfully growing strawberries in the Certhon Innovation Centre (CIC), the company has decided to take on another trial of growing fruits indoors.
“Raspberry isn’t the first crop that comes to mind when figuring out which crops to grow indoors,” Andrea Huegler, R&D Engineer and Agronomist at Certhon said. “However, we accepted the challenge and decided to go for it as there are a lot of benefits to growing it in a controlled environment.”
After successfully growing strawberries in the Certhon Innovation Centre (CIC), the company has decided to take on another trial of growing fruits indoors. Certhon has been doing lots of research on indoor farming for a long time now. This has allowed them to investigate how to grow more complex crops in a controlled environment without daylight.
Andrea Huegler
Trial results
The main advantage of growing this crop indoors is having higher yields and consistent quality year-round. Certhon sees great opportunities ahead for the crop, due to its premium status and short shelf life. “It makes it a perfect candidate to be grown indoors.” During this trial, common raspberry cultivars were chosen. Certhon used chilled raspberry canes from a propagator, pollination by bumblebees and top and interlighting was used to flourish the crops. The harvesting period comprises 10 weeks, out of a total cultivation cycle of 21 weeks and is expected to end in July 2021.
Cultivation risks
The research was mainly about investigating the right transition of the vegetative state of the crop to the generative state. Andrea says that balancing the climate and light with energy consumption is the trickiest part here. “Ever since the first raspberry trial we’ve been trying to balance out the reduction of energy use, having an X amount of yield at a great quality and extending the harvesting period. Throughout the trials, we have obtained nearly twice as much yield compared to the traditional Dutch polytunnel producers in the summer,” Andrea notes.
However, raspberry cultivation isn’t without challenges. “One of the risks that could come up is growing grey mold,” explains Andrea. “If nectar isn’t removed well from the flower, the fruit can grow mold or have a grey undertone. However, if you manage your humidity wisely, the incidence is severely reduced. That’s the idea behind the CIC, optimizing growing recipes and eventually expanding the product portfolio because we want to provide a wide selection of product options to our clients.”
Greenhouse application
The knowledge that is generated in the CIC can also be applied to the cultivation of raspberries in greenhouses. Growing these crops indoors allows Certhon to generate ideal growing conditions and maximum potential for raspberry cultivation. With this knowledge, Certhon generates a blueprint that growers can follow in greenhouse cultivation as well.
Andrea explains, “For instance, the blueprint can be followed when growers want to know when to: provide extra lighting, shading, or adjust the humidity. In this way, ideal growing conditions can be mimicked to achieve the highest quality and yield possible in a greenhouse.”
Cane risk
Another, very important aspect is the quality of the raspberry canes. In order to have good production, your raspberry canes need to be of good quality and pest-free. “This cannot always be guaranteed, '' says Andrea, “since they are propagated outdoors and therefore bound to the pressures of external influences, such as climate. Although we have not tried it ourselves yet, we think the next step is to also propagate raspberry canes in a controlled environment without daylight.”
For more information:
Andrea Huegler, R&D Engineer and Agronomist
Certhon
andrea.huegler@certhon.com
ABC Westland 555
P.O. Box 90
2685 ZH Poeldijk
The Netherlands
Tel: +31 174 22 50 80
www.certhon.com
Publication date: Mon 7 Jun 2021
Author: Rebekka Boekhout
© HortiDaily.com
Certhon Expands To Bring In Horticultural Experience For North American Market
Besides traditional greenhouses, indoor farming has become a professional segment that develops faster in the United States than anywhere else. In some cases, these facilities are complementary to the greenhouse, but mostly these are stand-alone setups
While celebrating its 125 years of existence this year, Certhon is far from done developing and expanding within the horticultural market. There have been a lot of developments for the company in the last few years. For example, Certhon established its own Innovation Center to research the optimization of technologies in the field of indoor farming. With a team of technology experts and agronomists, Certhon always tries to find ways to improve cultivation methods. Another development is the partnership between DENSO and Certhon that has been established last year. This collaboration is meant to accelerate the technologies used in horticulture.
We also see that projects are becoming more and more complex, large-scale, and international. Certhon is already active all over the world: from Europe to the Middle East and from Asia to North America. Because the demand for fresh greenhouse produce is still on the rise in the North American market, Certhon works to realize a stable presence in the United States. That’s why Timo Kleijwegt and Fred van Veldhoven have joined Certhon to rejuvenate and bring in experience to serve this growing market optimally. This, combined with dedicated local people and a support team based in the headquarters in Poeldijk, the Netherlands, entrepreneurs in North America can rely on the best Certhon has to offer and 24/7 support.
Left: Timo Kleijwegt, right: Fred van Veldhoven
Turn-key greenhouse projects
For expansion of an existing greenhouse, new (indoor) facility, or turnkey set up, Certhon has all the knowledge, know-how, and technologies under one roof to enable entrepreneurs to produce local, fresh food. All in accordance with the local regulations and requirements, and the wishes of the customer. One of Certhon’s solutions is the SuprimAir greenhouse, which is a semi-closed greenhouse that provides optimal growing conditions for various crops like tomatoes and peppers, but also ornamentals like orchids.
“In fact, Certhon doesn’t just design and construct a greenhouse, but creates the optimal climate and conditions to realize the best results,” says Fred van Veldhoven, who recently joined Certhon as International sales manager. “Certhon has its own developed system to obtain a complete and updated backtrack of the climatological conditions of a particular area per hour!” continues Fred. “All available data has been brought together and presents a reliable picture of the local situation. Future developments are being forecasted and extremes are being analyzed. This way, the right facility can be calculated, designed, and built for anything, anywhere.”
The American market is probably the most dynamic and demanding in the world and the consumers are used to have access to high-quality food, flowers, and ornamental plants. “Entrepreneurs choose for the total solution approach of Certhon, so they only have to turn the key,” concludes Fred.
State-of-the-art indoor farms
Besides traditional greenhouses, indoor farming has become a professional segment that develops faster in the United States than anywhere else. In some cases, these facilities are complementary to the greenhouse, but mostly these are stand-alone setups. The legalization of cannabis production in various states in the US and Canada has boosted this development. However, more and more entrepreneurs discover the benefits of fully controlled indoor food production, just around the corner.
Also within the larger agglomeration areas where fresh food is more expensive, indoor farming is part of the supply chain. Recently, Timo Kleijwegt joined Certhon as sales manager for the US market to respond to this development. Timo: “In our Innovation Centre, we have several indoor cells that are all designed differently so we can test which systems are working better for different purposes.
One of the crops we are testing and that is very interesting for indoor farming, are strawberries. Certhon has developed a unique growing concept for indoor strawberry production, which is highly profitable. Besides all the benefits that come with indoor growing, we see enormous positive results in yield and taste of growing strawberries indoors. At the moment, the final trials are being concluded. If anyone is interested in the results, they can contact me for a one-on-one presentation.”
Certhon will be present at key events in the US and Canada to share the latest developments, including the PMA in New Orleans in October. “We are looking forward to talking to ambitious entrepreneurs there,” Timo concludes.
15 Best Plants For Aquaponics
Aquaponics is a combination of aquaculture (raising aquatic animals) and hydroponics (using nutrients and water rather than soil to cultivate plants). It typically requires less water, less energy, and less labor than traditional farming
May 28, 2021
When it comes to growing plants, aquaponics is one of the most sustainable food production systems around. Aquaponics is a combination of aquaculture (raising aquatic animals) and hydroponics (using nutrients and water rather than soil to cultivate plants). It typically requires less water, less energy, and less labor than traditional farming,
Definition:
What Is an Aquaponics System?
An aquaponic system uses the nutrient-rich water from fish tanks as a natural fertilizer for plants. The plants, in turn, help purify the water for the fish habitat, mimicking nature’s ecological process found in lakes, rivers, and other waterways.
Both the water and nutrients in an aquaponic system are recycled in a closed-loop manner, oftentimes while being more productive than conventional soil farming.
Warm freshwater fish are known to benefit leafy crops the best, while other plants adapt better depending on the size or type of aquaponic system and the amount of sunlight available. Many aquaponic growers use freshwater tilapia fish in their tanks, although catfish, trout, bass, crustaceans like crayfish, and even saltwater fish can be used.
Both the fish and plants you choose for your aquaponic system should have similar temperature and pH needs, and while most commercial growers tend to lean toward leafy crops like lettuce and herbs, it is also possible to grow more exotic fruits and veggies like bananas and pomegranates.
Whether you’re growing on a large scale or just starting a new hobby at home, here are 15 of the best plants for aquaponics.
Lettuce
Leafy lettuce is probably the most commonly grown aquaponic plant, mainly because it is also the simplest and the most productive. The nutrient demand is low, while the pH requirement is between 6.0 and 6.2, and the temperature should be between 60 F and 70 F. Lettuce also has a shorter growing cycle and loves the sunlight, so it is ideal for outdoor aquaponic growing systems. Maintenance is typically limited to checking the pH level once a week, and you can harvest your lettuce in as little as a month’s time.
Kale
Kale plants grow so well in aquaponic systems that they can easily get out of hand if not harvested regularly. Also, kale can handle a slightly higher pH and temperature limit with a lower nutrient requirement than lettuce, and can be planted directly in sunlight outdoors as long as the temperature stays within 55 F to 70 F (it prefers temperatures on the cooler side, however). The plants do well in most aquaponic systems, but are partial to gravel growing media. After about five to six weeks, aquaponic kale is ready to eat.
Spinach
Low nutrient requirements and a wider margin for error in terms of pH makes spinach another amazing leafy green to plant in an aquaponic garden. The green superfood plant likes temperatures between 45 F to 75 F, but too much sun outdoors can cause bolting and a subsequent bitter taste in the crop. Since it has shorter roots, spinach doesn’t need a deep growing bed in order to thrive, making it ideal for nutrient film technique aquaponics and raft systems.
Tomatoes
Although tomatoes require a higher amount of nutrients, they can handle warmer temperatures (up to 85 F) and grow wonderfully in water. Because they are high nutrient plants, tomatoes are best reserved for larger systems with more time to establish themselves. Just like tomatoes grown in traditional gardens, aquaponic tomatoes will likely need a support structure to handle their tall growth—up to 6 feet for some plants. The best options for these plants are fish that like warmer water, such as tilapia, koi, and goldfish
Watercress
Usually the biggest problem with aquaponic watercress is how fast it grows and multiplies. One small plant quickly turns into many more and before you know it, you have way more watercress than you need. Plus, if it isn’t harvested regularly enough it can easily clog your grow bed, creating issues for the rest of your system. Watercress can even be cultivated circularly, as it is easy to grow from cuttings and from seeds, meaning you can produce it continually and for little to no additional cost.
Radish
From white daikon to classic red, radishes are one of the easiest vegetables to grow via aquaponics. Those who grow them regularly swear by using wood fibers to help sprout the seeds, but clay and pumice are also good growing mediums for radishes. They prefer cooler temperatures as low as 60 F but up to 80 F, and pH levels between 6.0 to 7.0, so common tilapia and koi are often used.
Carrots
Carrots need a lot of sunlight to thrive, though they prefer cooler temperatures between 59 F and 65 F. These veggies are considered difficult to grow, but all it takes is a correctly set up aquaponics system with a fine, pH neutral growing medium and at least 6-8 hours of direct sunlight daily. A media bed aquaponics system is best for carrots as they do not do well in other methods, and they can be harvested from seeds in two to three month’s time.
Strawberries
Strawberries are best grown using a vertical aquaponics system since they multiply quickly and require very little space. The only catch is, since most aquaponic strawberry plants only produce a few individual fruits, it is wise to plant as many as possible and give them plenty of space if you want to create a large yield. They require medium to high amounts of nutrients and prefer a ph between 5.5 and 6.5, with a temperature between 60 F to 80 F. Unlike leafy greens, strawberries require more potassium, so most growers will add them into their aquaponic systems after they’ve already become more established.
Basil
This herb’s natural ability to tolerate high heat and moisture makes it one of the best plants to include in an aquaponic system. It grows fast and can germinate in under a week, with plants ready to harvest and eat within just 25 days. Basil has low nutrient requirements and a temperature preference between 65 F and 85 F. Just like traditional soil-growing basil, it's important to remove flowers as they form in order to increase yield, and be sure to harvest it sparingly to lengthen its life.
Mint
No matter which variety of mint you choose to grow, they are almost sure to flourish in an aquaponics system. This isn’t always a good thing, as mint grows so fast that it runs the risk of overwhelming the entire growing system and keeping the rest of the plants from growing.
If you do choose to plant mint, keep plants 18 to 24 inches apart so the roots don’t compete over precious water and nutrients. Mint also requires partial shading, temperatures from 65 F to 70 F, and pH between 6.5 and 7.0.
Cucumber
As lovers of warm weather, cucumbers grow best in an area with plenty of access to sunlight and humidity (artificial lights if growing indoors). Keep a close eye on their complex roots to ensure they don’t clog up the piping within the aquaponic system, and keep plants between 11 and 23 inches apart so they don’t hoard nitrogen from the rest of your plants.
Cauliflower
Thanks to cauliflower’s natural hardiness, it requires little maintenance and will thrive in a water-based aquaponics system. Since it is also extremely resistant to pests and disease, it is another one of the best aquaponic veggies for beginners. Keep your cauliflower out of direct sunlight, and especially frost, if growing outside; it can also thrive in a greenhouse.
Cabbage
Westend61 - Michael Bader / Getty Images
Another easy plant to grow in aquaponics, cabbage does best with a pH of 6.2 to 6.6 and in temperatures between 45 F and 75 F. Cabbage seedlings should be kept warmer than a crop that has already matured, but otherwise, these vegetables require little maintenance outside of watching for the regular pests and rot. Harvest aquaponic cabbage after nine weeks. Since they are rather nutrient hungry, you’ll want to monitor them for nitrate levels, and consider a nutrient film technique system because of their shallow roots.
Sunflowers
Goroda / Getty Images
Aquaponics isn’t just for fruits and vegetables, but for flowers and ornamental plants as well. Under the right conditions, sunflowers can go from seed to 4 or 5 feet tall with an aquaponic system and will do well in both a greenhouse and outdoors in a warm climate. They can be grown without the use of chemical fertilizers or pesticides and are both edible and aesthetically pleasing.
Peppers
Kwangmoozaa / Getty Images
Opt for pH-neutral growing media like shale or clay pebbles to support your aquaponic pepper plants from seed to maturity, and remember that they grow best with their roots in water that is between 60 F and 75 F. However, hot peppers like cayenne or habanero will likely be more tolerant to warmer temperatures. They also prefer moderately acidic levels between 5.5 and 6.5, so they work with multiple fish options (even smaller fish like tetras thrive alongside pepper plants).
CANADA - QUEBEC: Billionaire Project In Saint-Bruno
This project is extremely interesting because it combines data centers with greenhouses. As you may know, data centers produce huge amounts of heat
Editor’s Note: This project is extremely interesting because it combines data centers with greenhouses. As you may know, data centers produce huge amounts of heat. In the cold climate of Quebec, greenhouses could use some more heat. It will be interesting to watch this project develop, and see if this new model for using waste heat to help grow food year-round is viable!
Martin Bouchard, the founder of the Copernic search engine and the 4Degrés data centers, wants to eventually build at least three high-intensity data processing complexes including the recovery of thermal waste. The total estimated bill will be around 5 billion.
Is the plan complicated? To put this into words: artificial intelligence, innovation, circular economy, high capacity computing servers, clean energy, greenhouse production, food autonomy; stir calmly and you will obtain the successful project on which Mr. Bouchard and his associates Vincent Thibault and Dany Perron have been working for three years.
The Quebec government is receptive to this project, La Presse has learned. The role of the monopoly of electricity distribution is essential since such a data center dedicated to artificial intelligence consumes twice as much energy in a year when compared to a city the size of Drummondville.
Construction has started on the first campus located in Lévis. Completion is scheduled for November 2022. The daily Le Soleil described the main features recently. QScale is planning a second branch in the Ecoparc de Saint-Bruno-de-Montarville, on the South Shore of Montreal, just behind the commuter train station.
“Saint-Bruno would be half the size of that of Lévis, our flagship. Ultimately, our vision is to be present in the main regions of Quebec.”
— MARTIN BOUCHARD
The unveiling of financial and strategic partners will be done soon. “We would like to make an announcement in the next few months, if not the next few weeks. We are going to announce our plan to become the world's top 3 in computing. We must have our food autonomy, but also our calculation autonomy, ”emphasizes Mr. Bouchard.
The serial entrepreneur, along with private investors, invested 30 million to start the project. The rest of the financial package will be revealed at the time of the official announcement. "We are working very hard to ensure that the ownership of the company remains entirely in Quebec. "
We are talking about big bucks: from 2 to 3 billion for the Lévis complex, 1 billion for the Saint-Bruno complex.
What is it about?
QScale aims to be a data processing campus with high computational density. Campuses seek to meet the needs of machine learning, the demand for which is growing with the arrival of artificial intelligence in enterprises. Consider the data calculations required to safely move autonomous vehicles forward. Mr. Bouchard cites Tesla, Volkswagen, Pfizer, and Goldman Sachs as potential customers.
“Compared to what you would find in a conventional data center, our fridge-sized server cabinets will have five times the processing capacity. It's going to heat up even more, ” notes the 48-year-old entrepreneur. Quebec has the advantage of having clean and cheap energy.
This type of infrastructure is only just beginning to emerge in the world.
“There is not yet a leader in high density processing. Americans like Colovore, in Santa Clara, and ScaleMatrix, in San Diego, are powered by fossil fuels, without heat recovery, and with high electricity costs. We will be at least 10 times bigger than them only with Lévis.”
— MARTIN BOUCHARD
The business plan provides for the recovery of heat released by servers to heat agricultural greenhouses.
"We want to contribute to the food self-sufficiency of the province with a potential of 400 hectares of greenhouses just for the first campus," he insists. However, all greenhouse vegetable production is currently grown on 123 hectares. "For this component, we are in discussion with several players," says Mr. Bouchard. Consultant for Savoura, André Michaud confides that he has never been contacted by QScale. He said he was puzzled when he learned about the outline of the project.
"We have a greenhouse robotization project using artificial intelligence to potentially automate physically demanding jobs," retorts Mr. Bouchard. In Lévis, we have adjacent farmland which is equivalent to the equivalent of 80 football fields, enough to produce 2,880 tonnes of raspberries and 83,200 tonnes of tomatoes. "
That's not all. Mr. Bouchard wants to add to these complexes an innovation zone specializing in artificial intelligence. “The AI Zone is the missing link between basic AI research and its application in manufacturing companies. "
IQ analyzes the file
The pharaonic project has appeared on the radar screen of the Legault government. "We heard about it," said an unnamed government source. It’s an interesting file that is being looked at.
It is at Investissement Québec (IQ) that the file is analyzed. The state's financial arm was on the list of organizations QScale wanted to solicit, after being listed in the Quebec Lobbyists Registry.
As for electricity, "we already have agreements with Hydro-Quebec. Everything is in order. They are very happy. I cannot disclose anything, it will be announced. It’s very large, ”says Mr. Bouchard.
It is the user-pays principle that applies when the promoter of a project wants to have access to the Hydro-Québec network. QScale's land is conveniently located near high-power substations.
For data centers, hydro rates typically start at 4.04 cents per kilowatt-hour (kWh) when the economic development rate applies. If applicable, the price is 5.05 ¢ / kWh.
CONTENT AND IMAGE SOURCED FROM LA PRESSE
Lead photo: QScale has started construction of the first high-intensity data processing complex in Lévis. Completion is scheduled for November 2022; Image sourced from QScale
June 3, 2021
WRITTEN BY:
ANDRÉ DUBUC, AND
JULIEN ARSENAULT
New AeroMax Growing Media From OASIS Grower Solutions Increases Hydroponic Crop Growth by Up to 30%
Engineered with a unique open matrix, the increased porosity of the new Horticubes® AeroMax growing media leads to greater airflow and maximizes the opportunity for oxygen to get to a plant’s root zone
(Kent, OH) – OASIS Grower Solutions, a worldwide leader in propagation and division of Smithers-Oasis Company, understands the importance of propagation. Not only helping plants grow but generating big ideas as well. The most recent of which is the revolutionary new substrate engineered for precision hydroponic farming called Horticubes® AeroMax.
New Horticubes® AeroMax growing media introduces a higher level of porosity for faster, healthier hydroponic crop root growth.
Before creating a new media to support the production of leafy greens, herbs, and other crops for hydroponic farming, Vijay Rapaka Ph.D., Global Research Manager set a rather lofty goal: “To create a smart substrate designed for today’s precision growing systems. Through extensive research over the last 24 months, we’ve achieved an ultra-low density that allows unrestricted root growth of young plants, so they can express their full growth potential of up to 30%. This innovative purpose is precisely why we named it AeroMax.”
Engineered with a unique open matrix, the increased porosity of the new Horticubes® AeroMax growing media leads to greater airflow and maximizes the opportunity for oxygen to get to a plant’s root zone. This helps crops grow faster and stronger, allowing young plants to prosper in the maximum air-filled substrate. Due to its enhanced porosity, air and nutrients constantly replenish a plant’s root zone, promoting stronger and healthier roots through each watering cycle.
The maximum airflow created with new Horticubes® AeroMax substrate helps get this young lettuce off to a great start.
Created with support from John Bonner of Great Lakes Growers, AeroMax has already delivered some impressive results. “The more porosity, the greater opportunity for air to contact the root zone,” begins Bonner. “And that happens more often with AeroMax, so we get fuzzy, almost hairy-looking roots. And when you get that type of growth, the plants simply grow faster. Since we started using AeroMax, we’ve seen faster crop growth upwards of 15%,” grins Bonner.
In addition to delivering greater oxygen to the crop’s root zone, AeroMax’s increased porosity and airflow enables it to drain more easily. This improved drainage keeps the top of the AeroMax growing media drier, dramatically reducing algae blooms and subsequent disease – creating a wonderfully clean and pathogen-free environment for young plants to grow.
Dr. Vijay Rapaka of OASIS® Grower Solutions and John Bonner of Great Lakes Growers review the incredible success of the new Horticubes® AeroMax.
AeroMax has a multitude of other functional benefits that support improved propagation. Its rich black color was strategically selected to increase the surface temperature and synergize well with photosynthetic light spectrum to produce more well-toned young plants. Plus, the less dense, almost spongy nature of AeroMax minimizes dust generation throughout the production process, making it easy to work with.
AeroMax has also been designed to separate easily at transplant through a unique etching around each cube, which also supports uniformity and precision growing. AeroMax growing media works well in NFT, Deepwater, and Vertical hydroponic systems, and is available in single-seed and multi-seed dibbled sheets of 50ct, 104ct, 162ct, and 276ct. The 50ct, 104ct, and 162ct sheets are top-grooved for easier separation.
For more information on Horticubes® AeroMax, contact Shannon Enoch, at Senoch@smithersoasis.com, customer service at 855.585.4769, or visit us online at www.oasisgrowersolutions.com/aeromax.
USA - ALABAMA: Yellow Hammer Farms Opening Birmingham-Based Hydroponic Farm, Market
The farm and market will operate using technology that will be able to provide fresh and affordable produce year-round. A typical farm may be limited to five or six harvests a year for some crops, but Yellow Hammer Farms can have 11 to 12 harvests a year within its climate-controlled environment
Yellow Hammer Farms is opening a new indoor farm near downtown Birmingham. YELLOW HAMMER FARMS
Birmingham will have a hydroponic farm and market starting this weekend.
Owners Frank and Jillian Fitts will open Yellow Hammer Farms on June 18 at 702 Third Ave. N.
The farm and market will operate using technology that will be able to provide fresh and affordable produce year-round. A typical farm may be limited to five or six harvests a year for some crops, but Yellow Hammer Farms can have 11 to 12 harvests a year within its climate-controlled environment.
“From the beginning, our mission has been to bring Birmingham high-quality, locally grown produce," Frank Fitts said. "With so many of Birmingham’s residents living in a food desert, it was vital that we find a location where we could provide everyone a convenient option for affordable, fresh produce. Working in the food and beverage industry, I also saw firsthand the need and desire of restaurants and consumers wanting to purchase local produce throughout the year. So much of the produce that comes to this area travels a long distance. We are hoping to change that.”
The venture began with the Fittses converting an empty warehouse in the Titusville community. The building now is retrofitted with an advanced vertical hydroponic growing system to create a highly efficient, controlled growing environment that uses no soil. Water loaded with nutrients recirculates throughout the system, feeding the plants, while LED lights and a climate control system are overhead.
Crops that will always be on hand include basil, lettuce mix, kale, and other leafy greens and herbs. Other produce will be featured throughout the year, and 20 items will be available on June 18 for the grand opening.
Hours of operation will be Tuesday through Friday from noon to 6 p.m. and Saturday from 11 a.m. to 4 p.m
OptimIA Program Analyzes Fruitfulness of US Vertical Farms
In a research fact sheet, a USDA Specialty Crop Initiative team outlines results with a model for calculating profitability potential against various factors that impact the return on investment of CEA operations
In a research fact sheet, a USDA Specialty Crop Initiative team outlines results with a model for calculating profitability potential against various factors that impact the return on investment of CEA operations.
May 21st, 2021
Image created with Adobe Spark using Pixabay free library. Data from OptimIA fact sheet, "Potential Profitability and Economic Success of Indoor Agriculture in the United States."
As we have heard from many industry speakers and reported in horticultural lighting coverage, global urbanization and population growth will continue to put a strain on the food supply. Such wide-scale concerns also breed opportunities for innovative research which will ultimately support technology development that helps improve the food supply.
I recently learned of Optimizing Indoor Agriculture (OptimIA), a Specialty Crop Research Initiative (SCRI) supported by the US Department of Agriculture (USDA). The larger objective is to extend the knowledge base regarding controlled environment agriculture (CEA) — often referred to as indoor farming, vertical farming, and indoor agriculture — to support long-term goals of:
Increasing uptake of CEA practices
Addressing food supply — quality, quantity, and availability, particularly in areas where food inequities are prevalent
Bringing sustainable, profitable operations and techniques to CEA growers
The initiative draws from team members across education and commercial horticultural/agricultural organizations: Dr. Greenhouse, Inc.; Michigan State University; Ohio State University; Purdue University; University of Arizona; and the USDA Agricultural Research Service (USDA-ARS). Some of the participants are familiar names from speaking at past LEDs Magazine events, such as Purdue’s Cary Mitchell, MSU’s Erik Runkle, and Dr. Greenhouse president Nadia Sabeh.
Digging into the OptimIA website, I saw the project team had posted a fact sheet of research highlights titled “Potential Profitability and Economic Success of Indoor Agriculture in the United States.” These highlights were collected in preparation for contributing a chapter to the upcoming book Plant Factory Basics, Applications, and Advances. The fact sheet offers a balanced summary regarding challenges to quantification of profitability, benchmarking data, and other factors. Researchers used a Japanese Plant Factory with Artificial Lighting (PFAL), base-case model, to perform their analysis of the profitability of US-based vertical farming.
The most interesting points I have included in the infographic above. But this general conclusion from the highlights comes as no surprise, really: “The changes with the most potential to increase profitability are those that focus on enhancing market price for the quality of product delivered, decreasing capital costs, and improving elements of biomass (plant size, density, and type of crop).” You can download the fact sheet from the OptimIA website.
That’s where the hands-on research will come in and why we continue to refine the program for HortiCann each year. We continue to pursue experts with scientific findings, case studies, and system developments that can decrease the capital costs of horticultural solid-state lighting (SSL) and AgTech systems and enhance grower operations with solid data and monitoring for buildable results. For example, look to last year’s HortiCann presentations on updated research findings on light spectra for various plant characteristics, data-driven automation, and our blog on the grower panel, which centered around end-user experiences in applying LED lighting to greenhouse operations — lessons learned and how they plan to evolve operations with future updates.
Watch the HortiCann Light + Tech website for updates to the program and register to join us for the free virtual event Sept. 28–29, 2021.
Visit the OptimIA website for more information on the project and other published research.
PODCAST: This Weeks Episode - Season 3 Episode 35
Join Harry Duran, host of Vertical Farming Podcast, as he welcomes to the show, co-founder and CEO at Oishii, Hiroki Koga. Oishii grows the best fruit in the world by deploying ground-breaking vertical farming technology that pushes the boundaries of agriculture
Join Harry Duran, host of Vertical Farming Podcast, as he welcomes to the show, co-founder and CEO at Oishii, Hiroki Koga. Oishii grows the best fruit in the world by deploying ground-breaking vertical farming technology that pushes the boundaries of agriculture. Today, Harry and Hiroki talk about the origin story of Oishii and how they became the first in the world to grow fruit in an indoor vertical farm at commercial scale.
Hiroki reflects on lessons he’s learned throughout his entrepreneurial journey, speaks to those who have influenced and inspired him, and expounds on the importance he places on living up to the quality and standards of the Oishii brand. Finally, Hiroki shares his excitement for future expansion of his business and what excites him the most about the future of Oishii.
Listen & Subscribe
CANADA: Thursday, July 8th, 2021 - 12:00 PM EST
Sit back and learn more about Growcer's beginnings, our farm's uses, and essential considerations for starting your own Growcer project. It will be an informal opportunity to ask our team questions and learn more!
Every first Thursday of the month, we'll be hosting a Meet and Eat that anyone can join; however, we're going to have it on the second Thursday in July to accommodate for the statutory holiday on Thursday, July 1st.
Register Now →
Sit back and learn more about Growcer's beginnings, our farm's uses, and essential considerations for starting your own Growcer project. It will be an informal opportunity to ask our team questions and learn more!
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Thursday, July 8th, 2021
12:00 PM EST
Re-Nuble And KETOS Partner To Provide Turnkey On-Site Food Waste Recovery Solution For Soilless Farms
Re-Nuble’s on-site food waste recovery system helps soilless farms optimize their operations while reducing costs
By 24-7 Press Release
June 17, 2021
NEW YORK, NY, June 17, 2021 /24-7PressRelease/ — Re-Nuble has announced a new strategic partnership with water innovator KETOS today, providing soilless farms across the United States with a turnkey on-site food waste recovery solution. By combining the technology of Re-Nuble’s on-site food waste recovery system with the KETOS SHIELD, soilless farms will not only be able to produce their own free supplementary and sterile biostimulants and potable water for reuse, but they will also gain access to industry-standard lab data on the quality of their treated water.
Re-Nuble’s on-site food waste recovery system helps soilless farms optimize their operations while reducing costs. Through its Organic Cycling Science™ approach, farms can finally use a fully integrated, closed-loop, and self-sustaining nutrient system, capable of reducing input and disposal costs, while delivering biostimulants capable of improving crop yield and nutritional value. However, as water droughts and erratic weather patterns become more frequent, the need for resource efficiency using circular economy strategies, particularly water reuse, is becoming increasingly necessary.
“We’re here to help our clients be proactive about water reuse in order to create a fully circular food production and hedge their risks. For that reason, we saw an immense value add for our clients by partnering with KETOS,” commented Tinia Pina, Founder, and CEO of Re-Nuble.
The KETOS SHIELD is part of a fully integrated solution offering valuable water insights including automated reporting, real-time alerts, EPA-compliant or custom threshold-based diagnostics, custom reports, historical trends, and more. These insights are used for water quality, safety assurance testing, protecting liability, understanding process optimization, improving crop yields and water data for farming and protecting consumer health.
“We are pleased to partner with Re-Nuble, as water quality and conservation is critical for agricultural applications – particularly in instances where nutrient management, water availability, water quality and consistency, or product safety is essential,” said Meena Sankaran, Founder and CEO of KETOS. “For many farmers, poor nutrient management, a lack of water, low water quality, inconsistent or varied water sources, and safety concerns can have a significant impact on both revenue and profitability.”
Re-Nuble noticed this was a salient challenge for all farms but more prevalent amongst the growing indoor, controlled environment agriculture market due to the frequent wastewater discharges not reclaimed. However, the solution is also of interest to soil-based farms as more municipalities seek to limit nutrient runoff and water contamination, impacting underground water tables.
Today’s announcement builds on Re-Nuble’s mission to help global agricultural communities reimagine localized food waste for more sustainable growing practices.
ABOUT RE-NUBLE
Re-Nuble is an MWBE-certified agricultural technology company that uses organic cycling science™ technology to transform unrecoverable vegetative food byproducts into a platform of sustainable technologies for soilless farming. Our closed-loop process transforms unrecoverable food byproducts into organic goods while eliminating landfill waste and greenhouse gasses. We were founded with the mission to help global agricultural communities reimagine localized food waste for more sustainable, environmentally-friendly growing practices.
For more information, please visit www.re-nuble.com.
ABOUT KETOS
KETOS delivers smarter, safer, and more sustainable water solutions to change the way the world thinks about water. This is done through a comprehensive offering of industrial-grade patented hardware, an IoT communication framework, and a robust software platform to address global water management issues. Real-time monitoring and understanding of water, both quantitatively and qualitatively, helps address both water efficiency (leak-detection & usage) and water quality (safety), ultimately increasing water availability. With the power of actionable and predictive water intelligence on a global scale, KETOS seeks to solve a number of the world’s water challenges with the goal of preserving this quintessential resource for generations to come. Learn more at http://www.ketos.co.
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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.