How can vertical farmers power through the energy crisis?

How can vertical farmers power through the energy crisis?

Nations across the globe are currently experiencing an unprecedented combination of events that have led to energy prices sky-rocketing. Freezing winters draining gas supplies, a “windless summer” limiting wind farm activity in the UK and staggering increased demand across Asia with the economic recoveries following lockdown having exerted even greater demand on resources of coal, oil and natural gas. With 85% of homes reliant on gas central heating, and a further third of our electricity being generated through gas, UK residents and businesses are set to see particularly hard price rises when the price cap rises in April, and then again in October.

Simultaneously, the economic impacts of war in Ukraine are also rippling through Europe. As the UK and EU enforce sanctions on Russia to isolate the country, these restrictions have the potential to cause a further economic fallout throughout the continent and the globe. Russia itself is the second largest exporter of crude oil in the world, and the world’s largest natural gas exporter. Although the UK sources just 6% of its crude oil and 5% of natural gas from Russia, countries across Europe are much more heavily reliant on energy exports. With the UK and EU economies still closely tied, it’s inevitable that we’ll see the wider impacts of inflation in our food shops, energy bills, and as a result, interest rates.

In short, Europe’s continued reliance on fossil fuels has been brought into a stark reality, and its impact on consumers, businesses and food prices is set to be far reaching.

What does this mean for greenhouse and vertical farming?

As with all forms of agriculture, energy consumption and food production are intrinsically linked. Whether it be the petrol or diesel used for transportation, fertiliser production and soil preparation in intensive arable farming, or the electricity used to power controlled environment agriculture - the food on our plates is the result of a long string of processes powered by a combination of fossil fuels and green energy. Inflation caused by fluctuations in energy prices is impacting every corner of the food production system. Vertical farms are equally vulnerable to these price fluctuations as other food producers, but are particularly sensitive to fluctuations in their price of electricity. Meanwhile, intensive greenhouse agriculture remains largely dependent on combined heat and power gas boilers for heating and electricity, exposing this more established industry to both gas and electricity supply variations.

So what choices do vertical farmers in particular have when their produce and crop yields are heavily reliant on electricity?

The changes we’re facing in increased energy prices and inflation are being felt across the industry, and are not unique to the vertical farming sector. If you are looking for a site and are considering vertical container farming, your tactical advantage lies in the movability of your business, and flexibility in co-locating with sites that have access to onsite renewable energy generation. Although green energy sources are still considered vulnerable to shortages, having a variety of energy sources, either by having direct access to renewable sources on-site or at a location nearby, can provide a proportion or all the power needed for your growing operation.

Greener energy solutions are out there, but where do you start?

An energy survey could provide you with the security that your chosen site has access to low-carbon energy, lowering the emissions of your produce, cutting your energy bills and supplying a reliable form of energy that isn’t primarily sourced from fossil fuels.

One such service is available through energy consultancy firm, District Eating. Dedicated to facilitating the development of low-carbon commercial and community-owned vertical farms and greenhouses, District Eating offer the following core services:

- Energy and resource surveying and carbon management plans: If you already own a farm, District Eating and sister company Tomson Consulting can provide energy waste and water auditing services to help you measure and manage your resource use, carbon footprint and route to Net-Zero, and support you in developing renewable energy projects. 

- Mapping studies: Multiple sites or large areas are analysed for their waste or low carbon heat, renewable energy and CO2 sources, as well as identifying suitable land and land ownership in proximity to the required utilities, with access to local markets. 

- Feasibility studies: From micro or early stage site developments, through to detailed feasibility and investment grade business cases.

District Eating are also working with the NFU to develop a matchmaking service expected to be available later this year to match growers with heat and low carbon power producers, enabling low CO2 and stable energy for your projects.

By mapping out courses of waste heat, CO2 and renewable electricity generators, District Eating can identify locations for greenhouse and vertical farmers that are not only going to be best suited for greener growing practices, but are less vulnerable to energy price hikes in the future.

Director at District Eating Faye Tomson explains how their matchmaking service could work for those in search for sustainable and low carbon energy sources, as well as for those with already established indoor farms.

“We have existing relationships with many utility companies and other companies that produce waste heat, CO2 and renewable electricity such as manufacturing companies, newable generators, EfW operators and water companies especially. There is so much valuable heat and CO2 that is already being produced, but just wasted and vented into the atmosphere. Many renewable electricity generators are only selling a fraction of what they produce onsite, the rest is being exported to the grid, and there’s a win-win to be had if they can sell to a grower onsite for more than they’d get exporting, and a grower can buy that power for less than they’d pay when buying directly from the grid.”

Pip Lorimer, Sustainability Consultant at District Eating, says “If you’re thinking about entering the market, I’d start off by asking why you’re looking into vertical farming. Because if it is to grow a higher yield of crops, or to find a food production solution that produces less carbon, there are different aspects that you have to look at, to make sure that these different criteria are met. These low-carbon solutions that we're providing are thinking about the future, and ultimately the impacts of climate change.

“There are definitely solutions to the rising energy prices, using waste sources is just one great way to avoid those costs. There are options out there that are cost effective, low carbon and help the environment.”

Oscar Davidson, Business Development Specialist at LettUs Grow suggests that although the energy crisis has brought the cost of energy into sharper focus for commercial growers, it is something the industry has been keenly aware of for some time.

“Energy can account for 40-50% of production costs in vertical farming, so securing a stable energy price is key to any vertical farming operation. The opportunity to stabilise and decarbonise the energy we use in vertical farms via co-location with and the use of renewable energy generation is certainly an exciting one. As an industry we're also working on other ways to reduce our energy consumption both through technical innovation and operational efficiency measures.

"It is important to recognise that energy is just one part of the puzzle and needs to be considered within the context of a wider business model and strategy. There is no one size fits all for vertical farming and each project should be considered on its own merits.”

There is no question that the indoor farming industry has entered a turbulent period of uncertainty - but with every challenge comes an opportunity to diversify and thrive. By utilising less carbon intensive energy systems, indoor farmers can create renewably powered food systems which can stand the test of time and uphold the ethics and motivations that underpin the industry: producing more food with less pressure on the environment.

If you’re looking for assistance in your crop modelling strategy or green energy sourcing, our team of industry experts here to help you navigate the market. For guidance or advice, get in touch with our business development team today.