HYDROPONIC GREENHOUSES PROJECT SCIENTIFIC AND TECHNICAL ANALYSIS

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1 HYDROPONIC GREENHOUSES PROJECT SCIENTIFIC AND TECHNICAL ANALYSIS DELMAR HOLDING S.P.A

2 The current trend towards slower growth in the renewable energy sector is a result of the diminishing European Union incentives that are currently in effect and predicted. This situation is pushing companies in this sector to search for alternative strategies to remain competitive. At the same time, the increasing demand for healthy and high-quality food for the global population that is in constant growth is in conflict with the growing problem of decreasing farmland worldwide due to pollution, desertification, and climate change. Because of this situation, Delmar Holding S.p.a., a leader in the renewable energy sector, is determined to embrace this challenge by proposing out of soil cropgrowth technologies that are energetically self-sufficient thanks to the implementation of a dedicated photovoltaic system. As a first step, Delmar Holding S.p.a. intends to initiate a pilot project focusing on the cultivation of tomatoes that consists of the following operations: Evaluation and purchase of land, Sizing, planning, and assembly of greenhouses, along with the related infrastructure Implementation of hydroponic growth of tomatoes, Cultivation of tomatoes in soil; Marketing and research of commercial partners. The following is a brief description of the abovementioned operations. Evaluation and purchase of land The company has identified the provinces of Piacenza as the preferable area where the project is to be developed. This area has been chosen based on the legal, technical, and economic implications. First of all, the land must be legally designated as a rural zone suitable for permanent greenhouses or any other related infrastructure. Furthermore, there are regulations limiting the proportion of agricultural land to infrastructure development within each property zone. That is, the land dedicated to open-air agriculture must be a certain percentage of the land, while infrastructure development may take up only a pre-established percentage of the land a well. Based on these limitations, Delmar Holding S.p.a. has identified as suitable those lands that have a surface area of at least 3 ha. Based on these regulations, the company has determined that a permanent greenhouse with a surface area of 1 ha is to be a portion of the land that is otherwise dedicated to in-soil crop growth. There are other considerations when evaluating land choice. 2

3 That is, on a technical aspect the land quality will be evaluated based on the area s climate, as well as location and sun exposure of the land plots, soil quality, cultivation requirements, and phytosanitary conditions that are predominantly based on the presence of nematodes that may affect cultivation. The conditions above will also be used to determine the price/quality ratio or each agricultural plot evaluated. The goal is to purchase land that offers favorable conditions for the implementation of our current and possibly future greenhouses by offering the best quality to quantity ratio, water and energy conservation, and favorable management costs. Sizing, planning, and assembly of greenhouses, along with the related infrastructure The basic idea is to build the permanent greenhouse frames out of steel and the walls and roof out of glass, and it must be climate controlled with a useful surface of 1 ha. These greenhouses should be subdivided into 10 smaller plots with a 1000mq surface area each that are completely independent from one another. This will allow for hydroponic cultivation in divided units that can be adapted to differentiate production based on the evolving market. The dimensions of these units must be functional in the sense that the area must be adequate enough to allow for uniform distribution of nutritional substances and internal atmospheric CO2 levels (an excessively long unit may cause problems in CO2 distribution). Climate control units in the form of heat pumps and/or automated opening of the greenhouse roof to obtain the appropriate temperature especially during summer or hot months. The choice and size of climate control methodologies will be evaluated based on the insulating capabilities of the materials used in the construction of the greenhouse and the area s climate conditions. The energy requirements for climate control and hydroponic growth can be completely and independently satisfied via the use of 100 kw photovoltaic panels placed on the side of the greenhouses, not on the roof, in order to ensure that adequate sunlight may enter and nourish the crops. However, there is still need for an artificial light source to make up for periods of decreased light, such as during the winter months. Besides the greenhouse, other pertinent buildings need to be built, such as a laboratory for the analysis of water quality and nutritional solutions. And currently, the company is working to identify construction partners that can provide the optimal construction services to satisfy their requirements. 3

4 Implementation of hydroponic growth of tomatoes As described above, the greenhouse will produce hydroponic cultivations of tomatoes from plants that are rooted in a substrate and watered through a type of plastic canal system that can either be in suspension or at ground-level. Ideally, an inert substrate such as perlite or mineral wool, but it is important to note that these kinds of substrates have a lower thermal capacity than organic ones, so a water heating system may have to be implemented to maintain the desired temperature. On the other hand, organic and inert ones may be mixed to obtain the optimal type of substrate. Nutritional substances will reach the plants through a drip system directly delivered to the roots, or via a spray system directly connected to the water pipes through small secondary nozzles (known commonly as spaghetti ). However, any kind of irrigation that irrigates the surface of a substrate may favor the proliferation of unwanted parasites within the substrate, especially when using a spray system that delivers nutrition in a way that is less targeted than other forms. During planning of this nutritiondelivery system it is important to install filters to limit sand and other impurities as much as possible. Filters will also help to avoid possible clogging of nozzles and calcium buildup that is common in waters around the Pavia area that may damage the system. In general, the most important aspects to consider are the regulation of temperature, humidity, photoperiod, and light intensity (these last two aspects are important for winter cultivation of tomatoes). Great importance must be given to the composition of the nutritive solution in order to meet the demands of the crop (such as calcium), the salinity levels, e and the quantity of calcium carbonate. Monitoring for insects is also important aspect necessary for maintaining plant health. And finally, methods for disposing of the nutritional solution should be analyzed to determine whether the optimal method is to allow them to disperse in the ground or utilize a closed system. All these aspects discussed above will implemented and perfected as the project takes form. 4

5 Cultivation of tomatoes in soil In-soil cultivation of tomatoes is to be considered as an integral part of the hydroponic greenhouses project because it allows for the utilization of the whole available surface area purchased. However, it is important to establish whether all the expected costs for in-soil cultivation are sustainable for the limited useful surface area while still taking into account the area covered by the greenhouse. In other words, considering 3 ha of surface area, the Utilized Agricultural Area (U.A.A) reserved for in-soil cultivation will certainly be less than 2 ha due to a few factors, such as the increased in weather damage insurance proportionate to agricultural area, enough room to allow agricultural machinery necessary for working, weed removal, and maintaining crop health. This last aspect requires the evaluation for the inclusion of contractors or perhaps the purchase of machinery that requires skilled workers. At the moment, the company is working on solutions through detailed analysis of the situation in light of its complexities and regulatory limitations. Marketing and research of commercial partners The costs associated with the activities above are justifiable, especially when considering that they lead to the production of crops that are environmentally sustainable, socially responsible, and still maintain a profit. The objective is to reach a production of 45 t/ha of U.A.A with a wholesale price of about /Kg. The type of tomatoes considered optimal for cultivation are Cherry, Plum, Piccadilly, and Ribbed. The first three types will be cultivated hydroponically and the last one, Ribbed, will be cultivated in ground. Delmar Holding S.p.a. has already obtained much interest in this project, especially for purchasing and collaboration purposes by some of the most important and notable Italian and foreign green companies. 5