CO2 GRO Inc. Announces a Commercial Feasibility with its UK Partner Rika Biotech Limited at a UK Greenhouse Tomato Grower
CO2 GRO Inc. (OTCQB:BLONF) has commenced a one-year commercial feasibility project with UK partner Rika Biotech Limited at a tomato greenhouse in the UK. The study aims to evaluate tomato yield during spring to fall and the effectiveness of Perimeter Protection™ in reducing powdery mildew spread, along with assessing CO2 usage cost reductions. The UK greenhouse vegetable market is valued at approximately £340 million, with tomatoes representing a significant portion. The expansion of domestic production in response to Brexit and rising self-sufficiency concerns further underscores the project's importance.
- Initiation of a commercial feasibility project with Rika Biotech, indicating growth potential.
- Focus on assessing tomato yield and disease control, which could enhance product applicability.
- The UK greenhouse vegetable market is expanding, presenting opportunities for GROW's technology.
- The high investment requirement for greenhouse expansions (~£1m per hectare) could slow market growth.
- The competitive nature of the biotechnology industry may impact GROW's market position.
TORONTO, ON / ACCESSWIRE / May 6, 2021 / Toronto based CO2 GRO Inc. ("GROW" or "the Company") (TSXV:GROW)(OTCQB:BLONF)(FRA:4021) is pleased to announce that it has started a commercial feasibility with its UK partner Rika Biotech Limited ("Rika") at a UK based tomato greenhouse.
The commercial feasibility has begun and will continue for one year. The goals are to assess tomato fruit yield in particular during the spring through fall months when the greenhouse is venting, assess the Perimeter Protection™ benefit with respect to reducing the spread of powdery mildew and to assess the reduction in CO2 usage costs.
Harry Hoskyns Abrahall, Principal of Rika commented, "After our first two commercial feasibilities being in France and The Netherlands, we are proud to begin our first commercial feasibility at home. The UK greenhouse market is set to expand quickly. Our strategy is to demonstrate the benefits of CO2 Delivery Solutions™ to be part of the coming expansion."
The UK Greenhouse Vegetable Market
The UK government estimates the annual revenue of greenhouse grown vegetables to be nearly £340 million grown in 50 million square feet of greenhouse space with the top three vegetables grown being mostly tomatoes (£230 million), peppers and cucumbers.
Below is an excerpt from an April 30, 2021 article published by HortiDaily magazine describing the trends in the UK greenhouse tomato market:
Extra demand for British growers following Brexit
- "UK growers produce around
20% of the total volume of tomato consumption. UK growers also produce around25% by value, as British tomatoes tend to be premium crops." - Food security has been brought into sharp focus as a result of both Brexit and the coronavirus pandemic. Brexit also means greater restrictions on overseas growers, making it more difficult to import goods. "Another factor that's set to increase demand on domestically grown tomatoes."
Expansions
- Recent expansions show how the British growers are ready to meet demand through sustainable approaches. "The high level of investment needed to build a glasshouse (approximately £1m per hectare) is a limitation on rapid expansion."
- Examples of sustainable growing practices include renewable energy systems, such as solar power, ground-sourced heating, and recycled rainwater. "Then there's the natural pest and disease control in greenhouse ecosystems. Growers also incorporate business development through high ESG standards, such as enhancing natural environments around farms and providing nearby communities with employment opportunities."
Aaron Archibald, VP Sales and Strategic Alliances commented, "We are very excited for our first commercial feasibility in the UK with our partner Rika, who are based there. As the article describes, the UK greenhouse tomato market is poised for a rapid expansion due to the self-sufficiency concerns brought on by events over the past year. Our CO2 Delivery Solutions™ technology fits the UK greenhouse market's expansion strategy from both an ROI and ESG perspective."
Visit www.co2delivery.ca for more information on CO2 Delivery Solutions™ or watch this video. To see a CO2 Delivery Solutions™ VCO2 system installation, watch this video.
About Rika Biotech Limited
Rika develops large scale anaerobic digesters (AD) for UK, Belgium and Dutch AD markets. Tightening of manure and agri-waste regulations across the EU are leading to new growth in AD requirements. Rika is implementing leading biogas technologies tailored to large volumes of waste material containing high nitrate such as in chicken manure and other hard to digest materials such as straw. For more information, visit rikabiofuels.com
About CO2 GRO Inc.
GROW's proprietary CO2 Delivery Solutions™ technology is revolutionizing the global 600 billion square foot protected agriculture industry (Cuesta Roble 2018). We create a saturated CO2 solution that when misted onto plants provides growers that cannot gas with CO2 the opportunity to increase plant yields by up to
The worldwide market for GROW's disruptive CO2 Delivery Solutions™ technology is the 50 billion square feet of greenhouses and 550 billion square feet of protected agriculture facilities (Cuesta Roble 2018). Growers can maximize revenue and profits with our systems' low fixed and variable costs and ease of systems installation.
GROW's management is rapidly expanding its international marketing partner relationships into the EU, the UK, South Africa, the Middle East, South East Asia and Latin America as well as in its North American base.
GROW is committed to good Environment, Social and Governance (ES&G) policy and practices. We are an equal opportunity employer of choice and opportunity.
Our mission is to accelerate the growth of all value plants safely, economically, naturally and sustainably using our patented advanced CO2 Delivery Solutions™ while accreting value to our customers, stakeholders and shareholders.
Forward-Looking Statements
This press release contains statements which constitute "forward‐looking information" within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to future business activities. Forward‐ looking information is often identified by the words "may," "would," "could," "should," "will," "intend," "plan," "anticipate," "believe," "estimate," "expect" or similar expressions and include information regarding: statements regarding the future direction of the Company; the ability of the Company to successfully achieve its business and financial objectives; plans for expansion and the ability of the Company to obtain, develop and foster its business relationships; and expectations for other economic, business, and/or competitive factors. Investors are cautioned that forward‐looking information is not based on historical facts but instead reflect the Company's management's expectations, estimates or projections concerning the business of the Company's future results or events based on the opinions, assumptions and estimates that management considered reasonable at the date the statements are made. Such assumptions include but are not limited to: general business and economic conditions; the Company's ability to successfully execute its plans and intentions; the availability of financing on reasonable terms; the Company's ability to attract and retain skilled staff; market competition; the products and technology offered by the Company's competitors; and that good relationships with business partners will be maintained. Although the Company believes that the expectations reflected in such forward‐looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements. Among the key factors that could cause actual results to differ materially from those projected in the forward‐looking information are the following: changes in general economic, business and political conditions, including changes in the financial markets; in particular, in the ability of the Company to raise debt and equity capital in the amounts and at the costs that it expects; adverse changes in applicable laws or adverse changes in the application or enforcement of current laws; the biotechnology industry and the greenhouse growers market are highly competitive, and technical advances in the industry will impact the success of the Company, and other risks described in the Company's filings that are available at www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward‐looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update this forward‐looking information except as otherwise required by applicable law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For more information, please visit www.co2gro.ca or contact Michael O'Connor, Manager, Investor Relations at 604-317-6197 or michael.oconnor@co2gro.ca
SOURCE: CO2 Gro Inc.
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FAQ
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