This project was submitted in the following language: português (pt).

Project description

The Agrolux project aims to implement multiple high-tech food-production units in urban centres and help towards social inclusion of more vulnerable groups.

Since 80% of all food will be consumed in cities by 2050, we want to make urban centres more resilient. The Agrolux project, made all the more relevant by the pandemic, will enable an industrial production system for fruit and vegetables in urban environments to be created. This activity will promote short production chains and provide consumers with high-quality food at low prices, stimulating the economy and local development.

Iracema Stramotas

Founder and Chief Executive Officer

I worked as a project manager with the BNP Paribas Group for 14 years. My professional experience is therefore mostly in the banking sector. Over the last three years, I have been the main driving force behind the Agrolux project in Portugal. I am known for my innovative vision, leadership skills, inspiring attitude, and resilience. In order to overcome my limitations as regards technical know-how in the vertical production sector, I set up strategic partnerships with some leading figures in soil-free production techniques. I also set up a multi-discipline working group.

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Country, Region

Portugal [Lisboa]

Start date

January 2021

Estimated project cost

EUR 2.5 million

Sector

Agriculture and rural development, forestry and bio-economy

Social Infrastructure, Social and Solidarity Economy

Asset ownership

Mixed

Project type

Greenfield

Project status

Structuring

Revenue type

Market-based

Expected Jobs created

182

Economic rationale / Business Model

The market for vertical agriculture is growing. Statistical data indicate that this market is expected to be worth almost USD 10 billion in 2025. In Portugal, this activity is already worth approximately €18 million. The Agrolux project stands out by virtue of its innovative business model, which promotes entrepreneurship and self-employment. To this end, we shall make available plots of land within production units and partners will be able to avail themselves of micro-credit in order to invest in their own plot. As part of a centralised management model, Grow in Peace is responsible for defining the food to be produced, contacting customers and marketing the products. By means of a personalised service placing the customer at the centre of the chain, we shall focus on on-demand production. We have presented the project to 26 hotel groups and all have expressed an interest in incorporating our products. Given the characteristics of this sector, which is looking for differentiated products, we shall focus on the production of food with added value. However, the activity carried out is almost risk-free from an economic point of view, insofar as there exists a stable demand for proximity.

Financing details

Project financing secured: EUR 0.50 million (20 %)

Financing source: Private

Existing or potential bottlenecks for the realisation of the project / Potential risks

Our risk-management assessment reveals that fires and natural disasters are certainly the scenario which could potentially be the most catastrophic. This risk may, however, be mitigated by taking out insurance and by State provision for aid in disaster situations. Thus, the main risk is related to the delays which may arise in licensing the relevant units.

Project additional information

In line with the ‘Farm to Fork’ strategy promoted by the European Green Deal, the Agrolux project will be implemented up and down Portugal. It currently enjoys the support of EIT Food and BGI – Building Global Innovators. Thanks to its relevance in the field of food safety, this project can be implemented in any market, whether in developed or developing countries. It is also in line with nine of the United Nations’ Sustainable Development Goals, insofar as it: promotes sustainable production and consumption; seeks to reduce inequalities by supporting inclusive employability and gender equality; contributes to making cities more resilient and sustainable, etc.

Publication: 16/12/2020 | Last update: 16/12/2020

The Commission gives no warranty and makes no representation, whether expressed or implied, that the Project Information is error free. The Project Information is provided without any guarantees, conditions or warranties as to its accuracy.