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Zero: The Climate Race

Perfume? Yes. Potatoes? No. Vertical farming tries to grow up

Zero: The Climate Race

Bloomberg

Technology, Business, Science

4.7219 Ratings

🗓️ 14 September 2023

⏱️ 33 minutes

🧾️ Download transcript

Summary

Cleantech is hard. Farming is harder. This week, Akshat Rathi visits entrepreneurs doing both. 

GroGrace in Singapore and Jungle in Paris are two vertical farming companies taking agriculture indoors, and trying to grow crops efficiently and profitably. While the technology to do this has been around since the 1990s, the business model has yet to be perfected, and several other vertical farms have closed down or laid off staff this year. As the world faces rising energy prices, water scarcity, and hotter temperatures, can the entrepreneurs in Paris and Singapore avoid the problems of their compatriots? 

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Zero is a production of Bloomberg Green. Our producer is Oscar Boyd and our senior producer is Christine Driscoll. Special thanks to Sheryl Tian Tong Lee, Natasha White and Kira Bindrim. Thoughts or suggestions? Email us at [email protected]. For more coverage of climate change and solutions, visit bloomberg.com/green

See omnystudio.com/listener for privacy information.

Transcript

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0:00.0

Welcome to Zero. I'm Akshadrati. This week, produce, profits and perfume.

0:07.0

Clean tech is a tough industry.

0:22.1

Sure, if you invent a zero-carbon tech that's both scalable and cheaper than the fossil fuel alternative,

0:28.6

you can make billions of dollars.

0:30.7

But many ambitious green companies struggle to turn a profit.

0:35.3

Farming, which has been around a whole lot longer than Clean Tech, is also

0:39.0

a notoriously hard business to make money from. Vertical farming combines both of these things,

0:45.5

and the entrepreneurs behind it are attempting something extremely difficult, turning what has been

0:50.7

done forever on the X axis into something on the y, while also recreating

0:56.8

natural conditions such as sunlight, rain and wind in a completely artificial environment.

1:03.8

The tech for modern day vertical farming was pioneered in the 1990s and it has a big promise.

1:10.3

If it can be successfully scaled, and that's a big if, it will use vastly less land, less

1:15.8

water, fewer pesticides and fertilizer.

1:19.1

It'll cut down on shipping, it can be done in the heart of cities, and on and on.

1:24.5

The environment would be perfectly controlled, meaning crops are less likely to be affected by storms,

1:29.3

droughts, floods or disease that will all become worse as we continue to warm the planet.

1:36.3

But all of this requires a huge amount of energy to replace the sun and recreate what nature gives for free.

1:43.3

And because energy costs have gone up around the world,

1:46.6

it is increasingly hard for vertical farms to break even.

1:50.3

This year has seen several companies enter bankruptcy

1:53.0

as they've struggled to crack the vertical farming business model.

1:57.2

Can you do tubers, potato, carrots?

...

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