Sundrop Farms
| Company type | Private |
|---|---|
| Industry | Horticulture, Renewable energy |
| Founded | 2010 in Port Augusta, South Australia, Australia |
| Headquarters | Port Augusta , Australia |
Area served | Australia, Portugal, United States |
| Products | Truss tomatoes (grown in solar-powered greenhouses) |
Number of employees | 300 (2019) |
Sundrop Farms specializes in the development, ownership, and operation of advanced greenhouses that cultivate crops while significantly reducing dependence on limited natural resources compared to traditional agricultural techniques. The company launched its initial pilot project in Port Augusta, South Australia, in 2010, originally established as a Seawater Greenhouse. After considerable technological advancements and the conclusion of a joint venture, Sundrop introduced the Sundrop System. By 2016, an expanded 20-hectare facility near Port Augusta was commissioned. Sundrop Farms also maintains offices in London and Adelaide and, as of 2016, managed greenhouse operations in Portugal and the United States, with intentions to expand further within Australia.
Sundrop system
The Sundrop System combines multiple technologies aimed at reducing the consumption of finite resources within greenhouse environments by delivering heat, power, water, and nutrients through more sustainable methods. At its South Australian sites, this system employs concentrated solar power, thermal desalination, and steam-driven electricity generation—marking the first integration of solar-generated heat, electricity, and water supply for greenhouse agriculture.
Commercial expansion in Australia
In 2015, Sundrop Farms constructed a 20-hectare solar-powered greenhouse close to Port Augusta, which became operational in 2016. This facility annually produces over 15,000 tonnes of truss tomatoes under a decade-long supply agreement with Coles supermarkets. The operation utilizes concentrated solar thermal energy alongside seawater desalinated from Spencer Gulf. The project created approximately 100 construction jobs and sustains around 200 employees during ongoing operations.
In 2014, private equity firm Kohlberg Kravis Roberts invested $100 million into the venture, supplemented by roughly $6 million in grants from the South Australian government. The John Holland Group was awarded a $150 million contract to construct the expanded facility over an 18 to 24-month period; total investment costs reached an estimated $205 million. The $175 million farm commenced production in June 2016 and supplies between 10% and 15% of Coles’ Australian truss tomato demand. In May 2019, ownership was transferred to investment firm Morrison and Co. Currently, the facility employs about 300 personnel.
Concentrated solar power
The 20-hectare greenhouse operates using an Integrated Energy System based on concentrated solar power (CSP) technology engineered by Danish renewable energy company Aalborg CSP. This installation represents the world’s first large-scale CSP system that simultaneously provides heating, freshwater, and electrical energy tailored for horticultural use. The solar field spans 51,500 m2 and features eSolar’s Solar Collector System. Commissioned in October 2016, it delivers a peak heat output of 39 MW while producing 1.5 MWe of electricity alongside seawater desalination.
Desalination plant
At its pilot stage, the facility desalinated seawater without discharging brine into Spencer Gulf; instead, brine was stored in ponds for salt extraction purposes. Following the expansion to a 20-hectare operation in 2014, Sundrop Farms received authorization from the South Australian Environment Protection Authority to release waste brine into Spencer Gulf at a salinity concentration of 60 parts per thousand via the cooling water discharge channel previously used by the coal-fired Port Augusta power stations. Approval under the EPBC Act was neither required nor pursued at the federal level. The company continues to investigate commercial-scale opportunities for mineral recovery from brine byproducts.
Government assistance
In addition to monetary investment, Sundrop Farms gained public endorsements from South Australia's Premier Jay Weatherill as well as ministers such as Geoff Brock and Gail Gago. David Travers, who was the Deputy Agent General for South Australia in London at the time and a former chairman, significantly contributed to progressing the company's initial concept. The Clean Energy Finance Corporation (CEFC) acted as one of the primary early providers of debt financing. Philipp Saumweber, CEO of CEFC, emphasized that their involvement was instrumental in helping Sundrop Farms attract expansion funding from the international investment firm Kohlberg Kravis Roberts (KKR).