Roots growth flourishes, secures key new contract wins in UAE and Israel

Roots Sustainable Agricultural Technologies has secured new sales contracts in UAE and Israel as its technology continues to attract attention for optimal and profitable growing of agricultural crops.

Israel-based agtech Roots Sustainable Agricultural Technologies (ASX:ROO) has secured additional contract wins in the UAE and Israel for the use of its commercial agriculture technology.

The contract win includes a deal for the supply of Roots’ HEPS (heat exchange probes) cooling solution, as part of a large-scale coffee production project in the UAE.

The win follows the recent signing of a free trade agreement between Israel and the UAE, which aims to lift bilateral trade to more than $10 billion.

EliteAgro deal

The new sales agreement in the UAE is with EliteAgro – a leading agricultural company headquartered in the UAE with operations in several regional and International jurisdictions.

Under the sales agreement terms, Roots will supply HEPS as part of a root-zone cooling solution for EliteAgro’s Coffee House Murmum project.

HEPS cooling design solutions will cool the root zone temperature of the coffee plants at scale, and keep them at an optimal range year-round.

The total consideration payable to Roots for the HEPS solution was agreed at US$105k ($151k).

Growing coffee in harsh climate

The Coffee House Murmum project is part of multiple commercial initiatives incorporating cutting edge agricultural technologies that offset the harsh climate environment in the UAE.

Roots said its technology is designed to support and facilitate the growth of 9,000 coffee plants in pots, under very hot weather conditions near Dubai.

Coffee plantations are usually grown in tropical regions, however, in the UAE the canopy will be exposed to air temperatures reaching up to 50C during daytime hours.

Coffee plants have a shallow root system, and most roots concentrate around the drip irrigation area.

The company said the roots system is designed to cool the root-zone area with the insertion of two HEPS per pot, maintaining an optimum temperature range under 30C.

The system is controlled by a unique monitor, which operates as a centralised data collection and data sharing system to control the heat pump operation.

Based on application of its technology and direct experience from previous commercial sales, Roots has observed a significant delta between cooled roots and the hot canopy, which will accelerate growth and boost the plant’s overall performance.

Furthermore, research has observed that the highest concentration of roots of plants occurred in the distances close to the irrigation drippers.

Roots has established its technology as a market leader among existing covered agriculture climate control management and cooling technologies, by focusing specifically on the cooling of the roots zone area, which is the most critical variable to plant health.

Compared with existing technologies, such as air cooling in greenhouses, Roots platform operating costs are significantly lower and preforms without the negative by-product of increased humidity levels in a greenhousesuch as wet-pad and fogging systems.

Two additional projects in Israel

Meanwhile, two additional contracts have been secured in the Israel market, demonstrating the multi-use application of Roots’ technology for an array of commercial agriculture operations.

The first is a hydroponic fluid temperature stabilisation project in Kibutz Pelech, Western Galilee.

The project involves commercial plant operation in a quarter acre greenhouse using the nutrient film technique method.

The company will supply and install a heating and cooling system that will connect to the growing fluid and provide the ideal temperature for the plant year-round.

Roots has also been commissioned to install a Root Zone Temperature (RZT) system comprising pipes in the beds of Ornithogalum flowers at Gobari Farm in Moshav Azriel.

The technology will be deployed for a farming client that grows flowers, peppers, and cucumbers for sale in domestic markets.

Applying the RZT technology system will enable their client to leave hatches in the growing bed until the next growth cycle instead of refrigerating them during summer, reducing labour costs and supporting profitability.

Growing diversified client base

Roots CEO and Chairman Boaz Wachtel said the project updates highlights the ongoing application of its sustainable agriculture technology across a diversified client base.

“In particular, the sale agreement with EliteAgro marks an exciting step forward for the business,” he said.

“It demonstrates both the effectiveness of Roots’ agricultural technology to improve production outcomes in harsh weather conditions, as well as the broader commercial opportunities underpinned by the recent Israel-UAE free trade agreement.

“The company continues to gain traction across global markets for its leading multi-channel product suite.”

This article was developed in collaboration with Roots Sustainable Agricultural Technologies, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.