Sundrop Farms have received over $100 million in funding to aggressively expand their greenhouse operations in Port August desert land to grow tomatoes and other vegetables with the help of solar thermal energy and desalination.

Global investment firm, Kohlberg Kravis Roberts (KKR) has provided around $100 million in funding with the South Australian (SA) Government also adding in around $6 million towards the project. The investments were set in stone after a 10 year contract to supply supermarket giant, Coles, with tomatoes was officially signed.

“This agreement represents a significant milestone for Sundrop Farms, giving us the confidence to proceed with the Port Augusta project,” said Sundrop Farms CEO Philipp Saumweber.

“Importantly, the Coles partnership allows Sundrop Farms to make a long-term commitment to regional South Australia.”

The Sundrop Farms will provide Coles with tomatoes all year round from 2016 onwards for 10 years.

The expansion of 20 hectares of green houses on the farm will use concentrated solar power to generate all of its heating, electricity and desalinated water to grow its tomatoes, capsicum and other vegetables.

Construction will provide SA with around 100 jobs and a further 200 on-going jobs once the expansion is completed.

“What this represents for South Australia is a fantastic employment opportunity for Port Augusta and the surrounding areas,” said Premier Jay Weatherill. “We have identified premium food grown in a clean environment as a key economic priority for South Australia and this project is the perfect example of the benefits that can bring.”

Sundrop states its system will work wherever there is ample sun and seawater. “We can grow food year round without worrying about weather, season or soil quality – even in places where a drop of rain hardly ever falls,” states the company’s web site. “Sundrop Farms provides economic and community benefits, while also reducing pressure on the planet – a triple bottom line.”

Sundrop Farms and KKR are looking to continue operations such as these in other countries that may also experience environmental constraints or supply issues – places like the Middle East where conditions will be similar to the Port August Desert.

“Sundrop Farms provides a unique and innovative solution to environmental challenges in farming,” said Justin Reizes, Member and Head of KKR Australia.

“KKR looks to invest in and partner with companies that provide solutions to environmental and societal challenges. Sundrop Farms epitomizes this effort, and we are delighted to work with this experienced and knowledgeable team to pursue new growth opportunities in Australia and internationally.”

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