Israeli-based, Roots Sustainable Agricultural Technologies Ltd. (ASX: ROO) is an industrials sector company engaged in the development and commercialisation of disruptive and highly advanced technologies to address the pressing issues faced by stakeholders in the agricultural sector such as management of plant climate and water scarcity for irrigation.
The company’s two Key Offerings based on in-house proprietary know-how, with patents in place, include -
- Root Zone Temperature Optimization (RZTO)
- Irrigation by Condensation (IBC)
Both have been helping farmers to optimise performance, lower installation costs, and reduce energy consumption.
On 24 October 2019, Roots informed the market that it is traversing through the meat replacement market and generating interest in its protein planting program through discussions being held with a European consultancy group and a bio-based company regarding the application of a Euro binational grant between Israel and Holland. The application will have three companies involved, two of which must be based in Europe.
Venturing into Artificial Meat Replacement Industry
The world is gradually moving towards artificial and alternative meats. In the United States, fast-food chains such as McDonald’s and Burger King have already released their respective artificial meat offering. Artificial meats have gained popularity in Australia with Hungry Jacks releasing a plant-based meat “Rebel Whopper” burger in stores across the country.
The market for artificial and alternative meats is growing at a fast clip. In this backdrop, Roots is presently examining the positive impact of its upgraded RZTO technology on four high protein crops at the company’s research hub in Bet Halevi, Israel (planting commenced 10 September 2019). In addition to RZTO, the newly released heat exchange stub would also be utilised, and the results will be compared to control crops.
The protein planting program is supported by previous RZTO results, whereby the technology enhanced the volume and weight of the roots, as well as an increased the vegetative activity of the plant, thereby increasing the total biomass of plants.
These observations and RZTO results indicate that the heating and cooling of plant roots will most likely increase total protein content and will be used by the company to lead the organic segment of the artificial meat replacement industry, that currently involves industrially grown, high protein crops with high dosage of herbicides and pesticides. If Roots is able to report success in improving the protein content of crops using the RZTO system, it could result in increased cost efficiencies for growers and farmers.
High-value protein laden crops are suitable for indoor growing where organic methods cater to a lucrative organic meat replacement niche.
Roots is also eyeing other good opportunities in the artificial meat market that are complementary to its technologies and will update on related progress shortly.
The month of October 2019 has been particularly very dynamic for Roots Sustainable Agricultural Technologies, with momentum building in North American Cannabis market and the following developments reported:
- Collaboration with cold thermal energy storage company Nostromo to increase the efficiency of Roots’ off-grid Irrigation by Condensation (IBC) technology. Parties will work together on combined IBC demonstration using Nostromo’s IceBrick to replace lithium batteries as a solar-powered water cooling and energy storage system. Roots would install its IBC system and supervise agronomical management while Nostromo would oversee onsite data collection and analysis.
- RZTO enhances the yield of cannabis dry flowers by up to 118 % at the US growing facilities of premium cannabis producer Canndescent and follows a commercial sale and installation in May 2019.
- Roots and ClearVue Technologies an ASX listed company (ASX: CPV), inked a collaboration agreement to target growing greenhouse market, including the creation of a world-first demonstration greenhouse in Israel. With complementary technologies, the two parties will jointly explore opportunities to leverage sales and business networks and increase operating synergies.
- Letter of Intent (LOI) signed with Italian agricultural company Cairo & Doutcher to explore RZTO distribution opportunities in Italy. Initially, Roots will install its s two-in-one heating and cooling system at Cairo & Doutcher’s Italian growing facilities for use on herbs and flowers.
- Order secured for AUD 87K for RZTO tech clubbed with its latest heat exchange stub from UNIVO to control soil temperatures in pots and grow bags. The installation is due for completion in December 2019.
Roots Sustainable Agricultural Technologies Ltd has a market cap of ~ AUD 4.3 million and the ROO stock is trading on the market at AUD 0.057, climbing up 23.91% by AUD 0.011 at AEST 02:23 PM on 24 October 2019.
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