Online supermarket giant Ocado has made a multi-million pound investment into Scunthorpe vertical farming start-up Jones Food Company.
The retailer has ploughed £17 million into it and a separate three-way international joint venture Infinite Acres, linking up with US operator 80 Acre Farms and Dutch tech operator Priva Holdings.
Vertical farming involves the production of food in indoor facilities where crops are planted on a series of levels so that they can be densely and efficiently produced.
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JFC launched less than a year ago in a converted cold store on Foxhills Industrial Estate, and now supplies produce for 11 million sandwiches a week.
Ocado said it plans to develop new vertical farms near to its current distribution and technology sites, and that they have the potential to be built near to its partners’ supermarkets.
Tim Steiner, Ocado’s chief executive officer, said: “We believe that our investments today in vertical farming will allow us to address fundamental consumer concerns on freshness and sustainability and build on new technologies that will revolutionise the way customers access fresh produce.
“Our hope ultimately is to co-locate vertical farms within or next to our customer fulfilment centres and Ocado Zoom’s micro-fulfilment centres so that we can offer the very freshest and most sustainable produce that could be delivered to a customer’s kitchen within an hour of it being picked.”
The method has surged in popularity due to its sustainability benefits, which include low wastage, the use of less water and the need for much smaller areas of land.
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JFC currently produces leafy greens and herbs for 海角视频 customers across a 5,000 sq m production site.
James Lloyd-Jones, chief executive, said: “JFC is delighted that Ocado has chosen to partner and invest with us.
“We are certain that the combination of their world-leading logistics and automation systems coupled with our advanced growing technology will transform the way customers experience fresh produce - delivered fresh to their door a matter of hours from ordering.”
The deal is Ocado’s first move into food production, but follows its £4.75 million investment in food robot firm Karakuri last month.
It follows regional recognition for JFC, as it took the Pepperells Innovation Award at the Northern Lincolnshire Business Awards in May.
Described as the world's most advanced vertical farm, with a strong focus on automation, the Celsius Parc facility has trays of produce stacked 17 high.
A capacity of 500 tonnes of herbs and salad has been envisaged, with the latest inLED lighting and hydroponics enabling 12 crop cycles a year, with a traditional field required for nine months.
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Ingredients for cosmetics and pharmaceuticals may follow, with technical analysis of nutrients undertaken to maximise yield and quality.
Every element of the facility is carefully controlled. The air is filtered and pressurised to ensure insects can't get in, and the water is pH and UV tested after every use.