US cranberry farmers turn to solar power

Cranberry farmers are hoping to cope with lean times for their industry by gleaning extra revenue through long-term land leases with solar power developers. AFP Caption text, Caption text, Caption text. (Reuters)
Updated 27 November 2019
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US cranberry farmers turn to solar power

  • Farmers look to build solar panels above bogs with crops grown underneath

CARVER: Plummeting cranberry prices and the country’s ongoing trade wars have America’s cranberry industry eyeing a possible new savior: Solar power.

Some cranberry farmers in Massachusetts, the nation’s second largest grower after Wisconsin, are proposing to build solar panels above the bogs they harvest each fall.

It’s a novel approach to blending renewable energy technology with traditional farming that has been researched across the world but not tried before on large-scale, commercial crop cultivation, according to solar power and agricultural industry experts. The basic idea is to build solar arrays high enough off the ground and in more spaced-out clusters to allow for crops to be safely grown and harvested underneath.

Cranberry farmers hope to shoulder lean times for their industry by gleaning extra revenue — in the form of long-term land leases with solar developers — while still producing the same quality berries they have for generations. An ongoing, nationwide study also suggests certain crops in particular climates can thrive under solar panels, though it’s unclear at this point how cranberries will fare.

Michael Wainio, a fourth-generation cranberry farmer, said he has sold off parts of his land, started a side business harvesting bogs for other growers, and launched a farm stand, deli and bakery
operation in recent years to make ends meet.

“We’re doing everything we can to diversify, and it’s not enough,” he said. “If we don’t get this, I’d be surprised if we made it five years.”

Wainio is working with
developer NextSun Energy on a project calling for roughly 27,000 solar panels over about 60 acres (24 hectares) of active bogs across three farms in Carver, near Cape Cod. The project would produce about 10 megawatts of energy, or roughly enough to power more than 1,600 homes, according to NextSun.

The cranberry industry has been dealing for years with the combined effects of crop surplus and weakening demand for one of its primary products, cranberry juice, said Brian Wick, executive director of the Cape Cod Cranberry Growers’ Association.

The price of cranberries has plummeted 57 percent over the last decade, from roughly $58 a barrel in 2008 to $25 in 2018, according to US Department of Agriculture data. But Wick says the cost to produce the tart red berries in Massachusetts is nearly $35 a barrel.

The USDA permitted industry to dump millions of pounds of fruit in 2017 and 2018 in order to stabilize prices, but the country’s ongoing trade disputes with Europe and China are further compounding the struggles for an industry that previously exported about 30 percent of its product, Wick said.

FASTFACT

57%

The price of cranberries has fallen 57 percent in the US over the last decade.

“What we like about these new solar projects is that they have a farm-first mentality,” he said. “This is an opportunity to keep the industry going. This isn’t about replacing farms with solar.”

In Massachusetts, cranberry growers and their solar partners are hoping to take advantage of a new renewable energy incentive meant to encourage such “dual use” solar and agriculture projects, as the state refers to them.

To qualify, arrays must meet certain design requirements, such as being built at least 8 feet off the ground. The projects also must provide an annual report demonstrating the land under the panels remains agriculturally productive.

At least one proposal has received state approval, a handful of others are under review, and more are pending before local authorities or are in earlier stages of development, say state and cranberry industry officials.

Dual use projects have proven successful on livestock farms in Europe and the US, and hundreds of projects have been built on crop farms in Japan, though all those are vastly smaller than what’s being proposed on Massachusetts cranberry bogs, said Jordan Macknick, an analyst at the federal National Renewable Energy Laboratory in Colorado who is coordinating a nationwide study on “agrivoltaics,” as the idea is sometimes referred.

The impact on crop cultivation in different environments is still being researched, he said.

In a study published in September in the academic journal Nature Sustainability, researchers at the University of Arizona found that cherry tomatoes grown under solar panels in the hot desert landscape produced higher yields and required less water.

But ongoing trials at a related site run by the University of Massachusetts have so far found that broccoli, kale and peppers are less productive growing under solar panels in the more temperate New England climate.

Other University of Massachusetts researchers are also beginning to assess the potential impact on cranberries. They erected large wooden structures meant to mimic the shading of a solar panel array on one of Wainio’s bogs this summer.

On a recent visit, countless berries could be seen growing under the structures, but researchers said they’ll need to assess their quality and yield when they’re harvested.

Giverson Mupambi, a UMass cranberry expert involved in the effort, said one key factor they’ll examine is color. The fruits need to achieve a bright red hue to be sellable, and sunlight is generally needed to achieve that color.

Property owners living near one of the proposed projects, meanwhile, have formed an opposition group and argue the state should proceed cautiously because the long-term environmental impacts of such large-scale projects are still unknown.

Those concerns and others have prompted the state to propose scaling back the size of projects allowed under its new incentive, among other new requirements. Solar developers say the proposed measures would make many projects financially infeasible.

And at least one major player in the cranberry industry remains lukewarm on the new approach to solar power.

A.D. Makepeace, the world’s largest cranberry grower and one of Massachusetts’ largest landowners, is not currently looking to take advantage of the new state incentive, spokeswoman Linda Burke said.




The revenue that solar power offers has been helpful to farmers as the price of cranberries has dipped in recent years. (AP)

 


Meituan looks to hire in Saudi Arabia, indicating food delivery expansion

Updated 26 April 2024
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Meituan looks to hire in Saudi Arabia, indicating food delivery expansion

SHANGHAI: Chinese food delivery giant Meituan is seeking to hire staff for at least eight positions based in Riyadh, in a sign it may be looking to Saudi Arabia to further its global expansion ambitions, according to Reuters.

The jobs ads, which is hiring for KeeTa, the brand name Meituan uses for its food delivery operations in Hong Kong, is seeking candidates with expertise in business development, user acquisition, and customer retention, according to posts seen by Reuters on Linkedin and on Middle Eastern jobs site Bayt.com.

Meituan did not immediately respond to a request for comment by Reuters on its plans for Saudi expansion.

Bloomberg reported earlier on Friday that the Beijing-based firm would make its Middle East debut with Riyadh as the first stop.

Since expanding to Hong Kong in May 2023, Meituan’s first foray outside of mainland China, speculation has persisted that its overseas march would continue as the firm searches for growth opportunities, with the Middle East rumored since last year to be one area of possible expansion.

“We are actively evaluating opportunities in other markets,“ Meituan CEO Wang Xing said during a post-earnings call with analysts last month.

“We have the tech know-how and operational know-how, so we are quietly confident we can enter a new market and find an approach that works for consumers there.” 


IMF opens first MENA office in Riyadh

Updated 26 April 2024
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IMF opens first MENA office in Riyadh

RIYADH: The International Monetary Fund has opened its first office the Middle East and North Africa region in Riyadh.

The office was launched during the Joint Regional Conference on Industrial Policy for Diversification, jointly organized by the IMF and the Ministry of Finance, on April 24.

The new office aims to strengthen capacity building, regional surveillance, and outreach to foster stability, growth, and regional integration, thereby promoting partnerships in the Middle East and beyond, according to the Saudi Press Agency.

Additionally, the office will facilitate closer collaboration between the IMF and regional institutions, governments, and other stakeholders, the SPA report noted, adding that the IMF expressed its appreciation to Saudi Arabia for its financial contribution aimed at enhancing capacity development in its member countries, including fragile states.

Abdoul Aziz Wane, a seasoned IMF director with an extensive understanding of the institution and a broad network of policymakers and academics worldwide, will serve as the first director of the Riyadh office.

 


Saudi minister to deliver keynote speech at Automechanika Riyadh conference

Updated 26 April 2024
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Saudi minister to deliver keynote speech at Automechanika Riyadh conference

RIYADH: Saudi Arabia’s Deputy Minister of Investment Transaction Saleh Al-Khabti is set to deliver the keynote speech at a global automotive aftermarket industry conference in Riyadh.

Set to be held from April 30 April to May 2 in the Saudi capital’s International Convention and Exhibition Center, Automechanika Riyadh will welcome more than 340 exhibitors from over 25 countries.

Al-Khabti will make the marquee address on the first day of the event, which will also see participation from Aftab Ahmed, chief advisor for the Automotive Cluster at the National Industrial Development Centre, Ministry of Industry and Mineral Resources.

Saudi Arabia’s automotive sector is undergoing a transformation, with the Kingdom’s Public Investment Fund becoming the major shareholder in US-based electric vehicle manufacturer Lucid, and also striking a deal with Hyundai to collaborate on the construction of a $500 million-manufacturing facility.

Alongside this, Saudi Arabia’s Crown Prince Mohammed bin Salman launched the Kingdom’s first electric vehicle brand in November 2022.

Commenting on the upcoming trade show, Bilal Al-Barmawi, CEO and founder of 1st Arabia Trade Shows & Conferences, said: “It is a great honor for Automechanika Riyadh to be held under the patronage of the Saudi Arabian Ministry of Investment, and we’re grateful for their continued support as the event goes from strength-to-strength.

“The insights and support we’ve already received have been invaluable, and we look forward to continuing this relationship throughout the event and beyond.”

This edition of Automechanika Riyadh will feature seven product focus areas, including parts and components, tyres and batteries, and oils and lubricants.

Accessories and customizing, diagnostics and repairs, and body and paint will also be discussed, as well as care and wash. 

Aly Hefny, show manager for Automechanika Riyadh, Messe Frankfurt Middle East, said: “The caliber of speakers confirmed to take part at Automechanika Riyadh is a testament to the event’s growth and prominence within the regional automotive market.

“We have developed a show that goes beyond the norm by providing a platform that supports knowledge sharing and networking while promoting the opportunity to engage with key industry experts and hear the latest developments, trends and innovations changing the dynamics of the automotive sector.”


Aramco-backed S-Oil expects Q2 refining margins to remain steady then trend upward

Updated 26 April 2024
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Aramco-backed S-Oil expects Q2 refining margins to remain steady then trend upward

SEOUL: South Korea’s S-Oil forecast on Friday that second-quarter refining margins will be steady, supported by regular maintenance in the region, then trend upward in tandem with higher demand as the summer season gets underway, according to Reuters.

Over the January-March period, the refiner said it operated the crude distillation units  at its 669,000-barrel-per-day oil refinery in the southeastern city of Ulsan at 91.9 percent of capacity, compared with 94 percent in October-December.

S-Oil, whose main shareholder is Saudi Aramco, plans to shut its No. 1 crude distillation unit sometime this year for maintenance, the company said in an earnings presentation, without specifying the time. 


Venture investments spark renaissance of Saudi innovation

Updated 26 April 2024
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Venture investments spark renaissance of Saudi innovation

RIYADH: In Saudi Arabia, a dynamic transformation is unfolding within the entrepreneurial landscape, powered by the robust growth of venture capital, which achieved an impressive 86 percent compound annual growth rate from 2019 to 2023.   

This financial infusion has been a game-changer, propelling the Kingdom past the $1 billion mark in venture capital investment last year and igniting a wave of innovative thinking among Saudi entrepreneurs. 

Simply put, VC is a category of private market investment and financing. A VC firm raises capital from investors, referred to as Limited Partners, and uses that capital to fund promising startups they have determined as likely to have high growth potential in an emerging category. 

A vibrant scene   

“The rise of venture capital in Saudi Arabia is fueling a vibrant entrepreneurial scene,” said the founder of Saudi-based VC firm Nama Ventures.   

Offering a unique perspective on this financial phenomenon, Mohammed Al-Zubi shared his insights with Arab News about how venture capital is energizing the entrepreneurial scene in the Kingdom. 

Al-Zubi described this financial influx as a vital nutrient, fostering a fertile ground for innovation and growth within the Kingdom.  

Founder of Nama Ventures, Mohammed Al-Zubi. Supplied

Ripple effects   

“Startups get crucial funding, expert guidance, and exit pathways, attracting and retaining ambitious talent. This creates a ripple effect — successful ventures generate high-quality jobs, attracting more skilled professionals and expertise,” Al-Zubi told Arab News.  

However, he explained that challenges like limited seed funding and skill mismatch require more attention.   

“By fostering a diverse ecosystem and addressing these gaps, Saudi Arabia can harness the power of VC to build a thriving and sustainable entrepreneurial powerhouse,” Al-Zubi added.  

Echoing Al-Zubi’s remarks, Tariq bin Hendi, senior partner at Global Ventures, told Arab News that the Kingdom’s VC growth reflects its booming economy.  

“Saudi Arabia is a large market with compelling macroeconomics and significant funding, which in turn is re-shaping the regional startup landscape,” Hendi said.  

“Increased investment has helped start-ups to digitize, scale and accelerate their business operations — with many success stories: Tarabut, Zension, RedSea, Zid and Hakbah being among the most well-known,” Hendi added.  

An innovative economy 

Hendi emphasizes the crucial role of venture capital in the economic diversification of Saudi Arabia.   

He notes that sectors like agritech, fintech, and cleantech are attracting significant investments, aligning with Saudi Arabia’s Vision 2030 goals.   

“The increase in investment saw Saudi Arabia secure MENA’s (Middle East and North Africa) highest VC funding in 2023, which is also aligned with the country’s Vision 2030 objectives,” he stated   

“Venture capital’s investment in nascent technologies and innovative ventures allows for early-stage experimentation and for new start-ups to respond to analogue-based problems previously difficult to navigate through digitalization,” Hendi added.  

According to him, this synergy between venture capital and startups not only drives technological progress but also offers insights into the regulatory landscape, promoting economic diversity and innovation within the region. 

He also highlights the broader impact of venture capital, noting how it enables local businesses to scale and address global challenges, creating job opportunities and demonstrating the Kingdom’s potential in leading sustainable startup growth.   

Moreover, Hendi points out that venture capital stimulates international collaboration, attracting global investors and reducing investment risks, further bolstering Saudi Arabia’s position as a dynamic hub for economic activity and innovation.  

Tariq bin Hendi, senior partner at Global Ventures. Supplied

Furthermore, in his article “Venture Capital Fundamentals: Why VC Is A Driving Force Of Innovation,” Mark Flickinger, general partner and chief operating officer at US-based BIP Ventures, describes VC as a critical factor for economic innovation.   

“VC is a rewarding form of private market investment that gives innovators a real chance to transform their ideas into businesses. It connects founders and investors, driving progress and successful outcomes for both,” Flickinger said.  

“And for everyone who is part of this virtuous cycle of funding, building, and scaling market-changing businesses, VC is a way to support the impact of the innovation economy – which is the economy today,” he added.  

The challenge  

Hendi underscores the significant transformation underway in Saudi Arabia, driven by the nation’s economic diversification and digitalization, which is fueling a burgeoning demand for talent and innovation.   

With a young, tech-savvy population, the Kingdom is ripe for entrepreneurial ventures, evidenced by success stories like Tabby, he explained.  

The growing ecosystem, supported by incubators and successful exits, showcases the country’s potential as a hotbed for technology-driven businesses catering to consumers, enterprises, and government sectors.  

The challenge now, according to him, is to further enhance this vibrant environment, making Saudi Arabia even more appealing for entrepreneurs.   

He advocates for continued deregulation and the creation of conditions that encourage innovation, enabling entrepreneurs to develop products and services that resonate with consumers and drive economic growth.   

The goal is to not only maintain the momentum but to elevate Saudi Arabia’s status as a premier destination for starting and scaling innovative ventures.  

How to utilize funding  

As VC growth continues to expand, startups are pressured to find efficient ways to use their funding to boost the overall ecosystem.  

Al-Zubi shares his advice stating: “Imagine your funding as rocket fuel – you have to blast off without burning it all at once, right?”  

“To fly long and far, focus on essentials. Build a stellar team, fuel growth with customer love, and lay a strong financial groundwork,” Al-Zubi added.  

“Track your rocket’s path with data, experiment with new maneuvers, and stay tuned to the space weather. Be open with your investors, listen to wise advisors, and don’t be afraid to adjust your trajectory if the wind changes. Remember, long-term success is a marathon, not a sprint. Spend smart, learn fast, and keep your eyes on the stars,” he added.    

Furthermore, Hendi advocates for meticulous planning in resource allocation, emphasizing the importance of understanding the market, timing for product launches, and strategic deployment of capital.   

According to Hendi, startups must have a clear grasp of their financial roadmap, with a detailed understanding of expected expenditures over set timelines, to ensure sustained growth and success in the evolving economic environment.