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Daily news and analysis about the food tech revolution

AppHarvest

AppHarvest Acquires Crop Harvesting Robot Startup Root AI for $60M

Controlled ag company AppHarvest announced today that it has acquired Root AI, a startup that makes AI-based robots for harvesting crops grown in indoor farms. According to the press announcement, AppHarvest is spending roughly $60 million to acquire Root AI, with $10 million in cash and the balance in AppHarvest common shares. Root AI had raised $9.5 million in funding.

Root AI makes Virgo, a universal harvester that can be configured to identify and harvest different crops such as tomatoes, peppers, cucumbers and strawberries. Virgo’s cameras use computer vision along with an infrared laser to create a 3D color scan of an area to determine what work the robot needs to perform.

For a crop like tomatoes, the system figures out the orientation of the fruit and determines if they are ripe enough to pick. Once it “sees” which tomatoes need to be picked, Virgo selects the most efficient route to picking the fruit and then sends a robotic arm and gripper to pluck the fruit.

Root AI - Going Cross-Crop

The acquisition makes sense for AppHarvest, which runs a 2.76 million square foot indoor farm in Morehead, Kentucky that is expected to produce roughly 45 million pounds of tomatoes each year. That facility uses an array of sensors, LEDs and other automated systems to control the entire growing process. Adding robotics harvesters to its stack seems like a logical next step for AppHarvest — particularly as the company is in the process of building out its network of farms. AppHarvest has two more farms currently under construction in Kentucky.

The company is also flush with cash, having went public via SPAC in February, giving it $435 million in “unrestricted cash” to run and grow its operations.

After the acquisition, Root AI’s 19 employees are expected to join AppHarvest, with Co-Founder and CEO Josh Lessing taking on the role of AppHarvest CTO, and Co-Founder Ryan Knopf joining as VP of technology.

AeroFarms to Go Public Via SPAC Deal

Large-scale vertical farming company AeroFarms announced today it will go public via a merger with special purpose acquisition company (SPAC) Spring Valley Acquisition Corp. Once the deal goes through, AeroFarms will become publicly traded on the Nasdaq under the ARFM ticker symbol. The combined company is expected to have an estimated equity value of about $1.2 billion.

Certified B Corporation AeroFarms also noted that the deal will help to fund things like expanding retail distribution, constructing additional farms, and further developing the technology that powers the company’s growing operations. 

Headquartered in Newark, New Jersey, AeroFarms grows leafy greens via indoor vertical farms that rely on LED light recipes, hydroponics, and software to grow plants. The company, which has raised $238 million to date, currently distributes products in the New York Metro Area as well as online via Whole Foods, FreshDirect, AmazonFresh, and Shop Rite.

The announcement comes not long after another controlled-environment agriculture company, AppHarvest, also went public via SPAC earlier this year. AppHarvest (also a Certified B Corp) completed a merger with Novus Capital Corp. and began trading on the Nasdaq on February 1. Its high-tech greenhouse model differs considerably from AeroFarms in terms of both the facility and the crops, but the end goal is similar — get pesticide-free, more locally grown produce to more people.

IPOs aside, it has been a busy month for the indoor farming space, with vertical farms Plenty and Bowery both expanding their retail footprint, Sweden’s Grönska raising $2.4 million, and Bablyon Microfarms closing a $3 million seed round.

AeroFarms said today that the merger has been approved by the Boards of Directors of both it and Spring Valley, and now just needs the approval of Spring Valley shareholders.  

AppHarvest Expected to Go Public Next Week via SPAC

AppHarvest’s expectation to go public is fast becoming a reality. The controlled agriculture company announced today that it is expected to complete its merger with Novus Capital Corp., a special purpose acquisition company, which will enable it to start publicly trading on the Nasdaq on Feb. 1.

Special purpose acquisition companies (SPACs), also called blank-check companies, often provide a faster IPO process for companies. AppHarvest first announced the deal with Novus just a few months ago, in Sept. 2020.

Since then, the four-year-old Morehead, Kentucky-based company has reached a few major milestones, including harvesting the first crop ever from its 60-acre indoor farm and starting construction on two additional farms in the Appalachian region. 

The company’s massive greenhouse facility runs off a mix of sensors, LED lighting, and hydroponics to grow produce 365 days per year. Because of the farm’s Eastern Kentucky location, abundant rainwater can be used to power the hydroponic system, minimizing resources used.

AppHarvest’s location also means it is within a day’s driving distance of about 70 percent of the U.S. population. This potentially vast reach combined with the growth possibilities an IPO can provide will help AppHarvest further realize its ambitions to make high-quality, pesticide-free produce available at a manageable price point to all Americans, not just the affluent ones.

The company sent its first shipment of beefsteak tomatoes to U.S. grocery stores last week. Meanwhile, AppHarvest said in a recent statement that it plans to construct more facilities across Kentucky and Central Appalachia, with the intent to be running 12 farms by 2025. The forthcoming IPO will undoubtedly aid in this process.

Controlled Ag Company AppHarvest’s First-Ever Crop Arrives at Grocery Stores This Week

Controlled environment farming company AppHarvest announced this week it has completed the first-ever harvest of its Morehead, Kentucky-based flagship indoor farm. The Beefsteak tomatoes harvested from the 60-acre farm will ship to grocery stores this week.

The Morehead, Kentucky indoor farm clocks in at about 2.76 million square feet, and AppHarvest says the facility is expected to produce about 45 million pounds of tomatoes annually. The farm uses a mix of sensors, LEDs, and other technologies to grow tomatoes inside a completely controlled environment. Unique among controlled ag operations, AppHarvest also runs almost entirely off rainwater, an element that Eastern Kentucky has in abundance. 

In addition to the Morehead facility, the company is also finishing construction on two more Kentucky farms: another 60-acre farm outside of Richmond and a 15-acre one for growing leafy greens in Berea. AppHarvest said in a statement that it plans to construct more facilities across Kentucky and Central Appalachia, with the intent to be running 12 farms by 2025.

The focus on Appalachia is a crucial part of AppHarvest’s expansion strategy as it builds out its high-tech greenhouses. Thanks to the continued decline of the coal mining industry, the region’s economy has been hit hard, to put it lightly. AppHarvest’s growing presence in Appalachia has already created jobs and livelihoods for residents of surrounding communities. “What we’re able to do here and how quickly we’re able to move and how much communities want us to be here on the ground, you can’t put that in a pitch deck or capture it in financial means,” AppHarvest’s founder and CEO, Jonathan Webb, told me last year.

The Morehead facility is also within a day’s driving distance of 70 percent of the U.S. population, which means AppHarvest’s tomatoes, and whatever else the company plans to grow in future, will reach an extremely wide audience.

To start, the newly harvested Beefsteak tomatoes will be available at select locations of national grocery chains like Kroger, Publix, Walmart, Food City, and Meijer. Tomatoes will be available in the produce section of these stores, cobranded with produce company Sunset Grown. AppHarvest said the tomatoes would be “comparable in price to standard tomatoes.”

The milestone comes just as AppHarvest, which raised $28 million in August 2020, plans to go public via a merger with a SPAC called Novus Capital Corp. 

‘Great Challenge Can Expose Great Opportunity’: AppHarvest’s Jonathan Webb on the Role of Indoor Ag

For AppHarvest founder and CEO Jonathan Webb, the role of the high-tech greenhouse goes far beyond providing produce to surrounding locales. Over the phone recently, he went into great detail about his company’s role in not just growing plants but also in providing jobs and morale for the community and playing a part in the solution to some of the agricultural industry’s most pressing global issues.

As a company, AppHarvest, based in Morehead, Kentucky, is only a few years old. But since its inception in 2017, it has moved quickly to make good on its mission of build a network of high-tech, controlled-environment farms that can grow non-GMO, chemical-free produce and at the same time help create a more resilient economy for Appalachia.

The year 2020 has been especially eventful for the company, which raised $28 million in August and finished building out its 2.76 million-square foot flagship facility a few months ago. When we spoke on the phone, AppHarvest had just completed planting of its first crop of tomatoes. It has also broken ground on two additional farms in Kentucky, a 60-acre one in Madison for fruits and vegetables and a 15-acre facility for leafy greens in Berea. Earlier in 2020, it also announced a partnership with the Dutch government as well as multiple universities to bring more research and education on controlled ag into the area and effectively turn Appalachia into an agtech powerhouse. 

Technology is an important part of the plan, and AppHarvest employs it in its greenhouses to grow crops all year and use substantially fewer resources in the process. The company doesn’t build its own technology. Rather, it uses existing technologies on the market that, when put together, amount to a more efficient grow system in terms of both crop yield and cost. Webb cites AppHarvest’s use of Philips GreenPower LEDs, which improve climate and crop control in greenhouses, as one example. 

“There [are] a lot of great technologies that are cutting edge and available and we can use them to be better aligned with nature,” he says, adding that AppHarvest is “trying to use proven technologies that are at the cutting edge without jumping over the edge.”

What is unique to AppHarvest’s approach is its rainwater system. Eastern Kentucky gets abundant amounts of rainfall, which AppHarvest captures and uses for its hydroponic system. This has a distinct advantage over using groundwater, since the latter contains sodium, which leads to agricultural runoff and the need for a system to be periodically flushed. AppHarvest’s greenhouse runs entirely off this rainwater. Webb says that to his knowledge, no other controlled ag system of this size in the world does that.

Webb is quick to point out that AppHarvest’s operations are more than a matter of steel and glass structures and hydroponics systems. “We’re trying to build an ecosystem,” he tells me. That’s one reason AppHarvest is locating its facilities near universities, with which the company can have a knowledge-sharing relationship. 

Even more important is the impact AppHarvest’s work has on the surrounding communities. Morehead sits in the foothills of the Appalachian Mountains, and is in an area that has for generations relied on the coal mining industry for jobs. Coal mining has been in decline for years, a situation further accelerated by the COVID-19 pandemic. As of May 2020, there were more coal industry mine closures and job losses than at any point since the presidency of Dwight Eisenhower 60 years ago.

“Many of us knew what was happening with the decline of the coal industry,” says Webb, a Kentucky native. He adds that the “vacuum that was created because of the rapid decline of the coal industry was a big reason as to why we looked to be located where we are.”

But great challenge, he says, can expose great opportunity, and morale in the community surrounding AppHarvest is “incredibly high” because the company’s efforts are creating jobs and therefore livelihoods for residents. 

That human element of AppHarvest’s story is, he admits, hard to translate into investor-speak. “What we’re able to do here and how quickly we’re able to move and how much communities want us to be here on the ground, you can’t put that in a pitch deck or capture it in financial means,” he says.

Equally important to communicate is why we need the efforts of those in the controlled ag space.

Most indoor ag companies, from Gotham Greens to AeroFarms to Plenty, highlight the more well-known benefits of controlled-environment farming: 90 percent less water usage, 40 percent less energy consumption. Less talked about are the reasons indoor ag is so crucial right now. The UN has already warned that we only have about 60 harvests left in our top soil. Plowing and over-tilling have increased erosion by 10 to 100 times natural rates, and that’s to say nothing of deforestation, overgrazing, and pesticides that add to soil degradation. Throw in a human population predicted to reach nearly 10 billion people by 2050, and traditional agriculture’s toll on both the earth and the food system start to look a little less abstract and far more disconcerting.

“We have to free up land and water to the wild,” says Webb. “This is a topic we’re not talking about nearly enough.” 

Controlled ag, he says, plays a critical role in this process, and is in many ways the third wave of sustainable infrastructure, after alternative energy and electric cars. Like the other two areas on that list, controlled agriculture will continue to evolve over time as one piece of the overall agricultural system. 

What it will look like in even just a few years remains to be seen. The last several months have seen huge investment dollars and a lot of different companies trying different methods around controlled-environment agriculture, from vertical farming in reclaimed shipping containers to high-tech rooftop greenhouses to planting farms in grocery stores. 

For Webb, analyzing whether one method is superior to another shouldn’t be the focus right now. The point is, companies are building solutions in response to a global problem with profound environmental and humanitarian consequences. 

“We can debate all we want but at some point we have to move,” he says. “At some point you have to leave the analysis behind. At some point you have to build something.”

Revol Greens Raises $68M to Build Out High-Tech Greenhouses in the U.S.

Revol Greens announced today it has closed a $68 million funding round for its network of high-tech greenhouses the company says will eventually supply 33 million pounds of greens annually to the U.S. The round was led by Equilibrium Capital. According to a press release sent to The Spoon, this brings Revol’s total funding to $215 million.

The Minnesota-based company says it will use the new investment to launch its third facility, which is a 20-acre farm in Texas that could expand to 80 acres in the future. 

Revol is part of a new wave of companies marrying greenhouse growing with technology systems that allow food producers to grow crops year-round, in totally controlled environments. Its system uses closed-loop hydroponics and, when necessary, supplements natural sunlight with LEDs. It also collects data on plant growth to ensure crops have the correct levels of water and nutrients they need to grow.

As they’re based in Minnesota, the folks behind Revol are no strangers to the kind of extreme weather that makes growing crops outdoors impossible for parts of the year. But extreme weather is also a consequence of climate change, whether it’s fire, drought, or insect outbreaks, and it is becoming more widespread. In traditional agriculture, that could mean an increase in pests, flooding or heavy downpours that threaten crop yields, and increases in carbon dioxide that decrease the quality of products. 

Revol is not alone in merging the greenhouse with high tech to provide an alternative to traditional agriculture. AppHarvest is currently building out a massive greenhouse facility in Appalachia. The company recently raised $28 million. Iron Ox, which raised $20 million earlier this month, is bringing robotics to the greenhouse, and a company called Lufa has taken the greenhouse concept to rooftops in cities.

Getting greens closer to cities is also one of Revol’s goals. “High-tech greenhouses give us the ability to return to regional food systems with farms that produce our food near our communities,” David Chen, CEO of Equilibrium, said in today’s press release. “Regionalism gives us resiliency, food security, and addresses the threat of climate change to our food system. Greenhouses are the tech disruptor in a 10,000year-old agriculture sector.”

Revol CEO Mark Schulze added that by the end of 2021, the company will be “the world’s largest indoor lettuce producer.” 

The company’s first greenhouse launched in 2018 in its hometown of Owatonna, Minn., followed by a second facility in Tehachapi, Calif., which Revol is in the midst of building out.

Iron Ox Raises $20M Series B for More Robotic Greenhouses

Ag tech company Iron Ox, best known for its greenhouses powered by robotics and AI, announced this week it has raised a $20 million Series B round. The round was led by Pathbreak Ventures with participation from Amplify Partners, At One Ventures, Crosslink Capital, , ENIAC Ventures, R7 Partners, and Tuesday Ventures. Iron Ox’s total funding to-date including this round is $45 million.   

In addition to the funding news, Iron Ox also announced a new farming facility in California, this one in Gilroy. Like the company’s first greenhouse, which is located in San Carlos and opened in 2018, the Gilroy facility will use a hydroponic grow system manned not by humans but by a large mobile machine equipped with robotic grippers. The machine plants, harvests, and moves the heavy grow trays around as needed, while machine learning and computer vision systems monitor plant growth. Humans aren’t completely out of the equation, though: the system still needs them to prune and inspect plants. 

Unlike many other indoor farming operations, Iron Ox does not use LED lights, but instead relies on good ol’ fashioned sunlight for plant growth. For now, the farms grow the standard mixture of leafy greens and herbs. The new Gilroy farm will sell these greens to Whole Foods and Bianchinis markets in California. 

Some of the benefits high-tech greenhouses like those of Iron Ox bring include more efficient use of space and the ability to serve customers (the ones that can afford Whole Foods, at least) locally. Iron Ox also says it uses less water than traditional farming as well as less energy. 

The company joins AppHarvest, Lufa Farms, and Gotham Greens in making recent headlines around new developments and investments in large-scale, high-tech greenhouse farming.

Lufa Farms Unveils the ‘World’s Largest Rooftop Greenhouse’

Lufa Farms hit a noteworthy milestone recently. The Montreal, Quebec-based agtech company opened its fourth and largest indoor farm, and is “the world’s largest rooftop farm” (h/t Modern Farmer).

For this new farm, which is located in the Saint-Laurent borough of Montreal, Lufa Farms says it has has doubled its production capacity for fresh vegetables, adding 163,800 square feet for a total of 300,000 square feet of growing space. 

The new facility started full production early in August of this year and, according to the official press release that came out at the end of last week, now yields 25,000 pounds of produce each week. The greenhouse grows 10 varieties of tomato and 3 varieties of eggplant.

Since its inception in 2009, Lufa has been fine-tuning its process around farming on commercial rooftops. That means it doesn’t use new any new farmland in order to grow crops, which is an important point in any discussion about sustainable farming. The greenhouses use an irrigation system that recirculates water and what it calls “the passive energy savings of simply being on an urban rooftop.” 

That urban setting also means produce is closer to the consumers buying it. To that end, Lufa has a subscription service that provides customers with a weekly basket of produce in addition to an online farmer’s market where the company sells its crops as well as food items from partner food producers. Users can either have their goods delivered to their own doorstep for a $5 fee or designate one of Lufa’s pickup points nearby. 

More and more urban greenhouses are cropping up as the food industry looks to supplement — though not necessarily replace — more traditional forms of agriculture. Gotham Greens is another notable player in this space, having recently opened its latest high-tech greenhouse, a 100,000 square-foot space in Baltimore earlier this year. Element farms uses the greenhouse format to grow spinach, and in Morehead, KY, AppHarvest is building out a massive facility that will provide produce and employment to the surrounding Appalachia area.

For its part, Lufa said it’s seen a surge in popularity for its own greens thanks to the pandemic. In response, Lufa launched a seven-day service, tripled its home delivery capacity, and added new local markets as well as team members. No one is sure what direction the pandemic will next turn in, though given its recent developments, Lufa seems well-poised to weather the uncertainty.

AppHarvest Raises $28M as it Builds Out a Massive Greenhouse in Appalachia

Ag tech company, AppHarvest, announced yesterday that it has raised a $28 million Series C round of funding. The round was led by J.D. Vance’s Narya Capital, with participation from Lupa Systems and Rise of the Rest among others. This brings the total amount raised by AppHarvest to $150 million.

AppHarvest is in the midst of building out the worlds largest greenhouse facility in Morehead, KY. When completed, it will be a 2.76 million-square foot indoor faming facility that will use hydroponics and vertical farming to grow 45 million pound of fresh produce a year. The greenhouse is scheduled to open this fall and will employ roughly 300 people.

AppHarvest’s facility is within a day’s drive of 70 percent of the U.S. population, so it will be able to provide fresh produce to grocery stores in Appalachia, as well as surrounding states.

In June of this year, AppHarvest partnered with the State of Kentucky as well as the Dutch government and several universities. These partnerships were designed to create a series of research programs and develop the greenhouse as a “center of excellence” for agtech innovation.

AppHarvest isn’t the only indoor farming startup partnering with a local government. AeroFarms and the World Economic Forum partnered with the City of Jersey City and as my colleague, Jenn Marston wrote last week:

This is the first partnership between a city municipality and a vertical farming company in the U.S. Through it, AeroFarms will build 10 vertical farms in senior centers, schools, public housing, and municipal buildings around Jersey City. Collectively, the farms are expected to produce 19,000 pounds of vegetables annually, according to AeroFarms. Greens will be free of charge to residents, and the initiative also includes healthy eating workshops and quarterly health screenings.

Hopefully projects like AppHarvest and AeroFarms can use their tech platforms to help create a more equitable food system for everyone.

Kalera to Build the Largest Vertical Farm in Texas

Vertical farming company Kalera announced today that it will open a high-tech facility in Houston, Texas in the spring of 2021. According to today’s press release, this will be the largest vertical farming facility in the state.

The announcement follows recent news that Kalera is also opening a facility in Atlanta, Georgia in 2021. The company already operates one in its hometown of Orlando, Florida.

Over the last couple years, Kalera has made a name for itself supplying greens grown via vertical farms to the hospitality sector. As of the end of last year, the company’s HyCube system was supplying the Orlando World Center Mariott resort with greens, and had plans with several grocery retailers and restaurants. It opened a second facility in Orlando in March of this year.

Then, as so many narratives go these days, the pandemic hit, and it’s a little hard to service produce to restaurants that are closed down. So Kalera struck a deal with Publix to sell its greens at 165 of the grocery retailer’s stores. 

“We were very fortunate to be able to quickly pivot and focus more on the retail side and benefit from the slowdown.,” Kalera CEO Daniel Malechuk told me over the phone in April, at the time of this pivot. 

The company didn’t name grocery specifically in today’s release, but given the current situation in Texas around COVID-19, retail seems a more likely destination than restaurants for greens coming out of Kalera’s new facility. Once open, the new site will be able to service not only the Houston area but also Dallas-Ft. Worth, San Antonio, Austin, and New Orleans. 

Kalera’s high-tech vertical farming system uses IoT, data analytics, AI-powered process automation and cleanroom technology in its facilities to monitor plant growth and create the optimal recipe of lights, nutrients, and water for crops. Right now, the company grows leafy greens, which Malechuk said in April take less time to transport. “Other produce and fruit is probably extremely cost prohibitive in dense urban settings and situations,” he said.

The last few weeks have seen a surge of news in vertical and indoor farming, both in commercial-scale farming and at-home devices. AppHarvest has partnered with the Dutch government to turn the Appalachian region of Kentucky into something of an indoor farming powerhouse. Farmshelf launched its first-ever at-home vertical farming until for consumers. And SinGrow, a Singapore-based company that actually is trying to grow more than leafy greens, is getting a lot of attention of late for its proprietary strawberries and vertical farming tech.

Kalera said in today’s release that the Houston facility is just one in a string of planned locations around the U.S. and the rest of the world.