A farm near Port Augusta in South Australia that uses concentrated solar power to generate the heat, electricity, and desalinated water needed for its growing operations has announced two major deals in the last week.
Last Thursday, Sundrop Farms announced global investment firm KKR has provided growth capital to expand Sundrop Farms’ glasshouse facility and assist with international development.
The financing will enable Sundrop to build a 20-hectare greenhouse facility that will produce more than 15,000 tonnes of vegetables annually for markets across Australia.
Additionally, Sundrop and KKR have set their sights on expanding into countries with similar environmental conditions or supply constraints, such as the USA and Middle East.
“Sundrop Farms provides a unique and innovative solution to environmental challenges in farming,” said Justin Reizes, Member and Head of KKR Australia.
“KKR looks to invest in and partner with companies that provide solutions to environmental and societal challenges. Sundrop Farms epitomizes this effort, and we are delighted to work with this experienced and knowledgeable team to pursue new growth opportunities in Australia and internationally.”
Also announced by Sundrop Farms last week was the signing of a contract with Coles to supply the supermarket chain with tomatoes grown with solar power and desalinated seawater. Sundrop will also receive funding from the South Australian State Government over the next three years.
“This agreement represents a significant milestone for Sundrop Farms, giving us the confidence to proceed with the Port Augusta project,” said Sundrop Farms CEO Philipp Saumweber.
“Importantly, the Coles partnership allows Sundrop Farms to make a long-term commitment to regional South Australia.”
Coles Managing Director John Durkan said the deal will be supporting the creation of 300 new jobs and investment in South Australia.
The facility will grow truss tomatoes 365 days a year and Sundrop Farms will supply Coles from early 2016 for 10 years.
Sundrop states its system will work wherever there is ample sun and seawater.
“We can grow food year round without worrying about weather, season or soil quality – even in places where a drop of rain hardly ever falls,” states the company’s web site. “Sundrop Farms provides economic and community benefits, while also reducing pressure on the planet – a triple bottom line.”
Source: Sundrop Farms
