Projects in progress, Financing Litangen Projects in progress, Financing Litangen

Panponic - delivers water-based recycling systems for modern horticulture

Panponic Biosystems represents established competence, experience and finalized system deliveries in what can safely be described as an emerging market. The founders now want to get the business into a commercial framework.

Panponic Biosystems AS delivers water-based recycling systems (hydroponic) for modern horticulture, for industry, education, neighborhoods and households. The company was established in the autumn of 2016 and is owned by Jan Krøger, Helge Liltvedt and Cato Litangen in equal parts.

The company represents both competence and finalized deliveries in what can safely be described as an emerging market. Next step is to establish the company within a commercial context. Development costs incurred are estimated at NOK 3.2 million. The next step is the establishment of an organization with sales and technical development within an operating budget of NOK 5 million per annum. Revenues are distributed over projects- and system sales.

Background:
When electronics engineer Jan Krøger moved into the neighboring office of childhood friend Cato Litangen in late 2016, he quickly became involved in Panponic. Professor of water sciences, Helge Liltved and Cato had initiated the start-up of Panponic Biosystems AS earlier that year with fellows from the fish-farming sector. The company was divided. Panponic was to concentrate on the technical development of hydroponics. Feedback Aquaculture continued their focus on land-based fish farming. This became two specialized environments geared towards collaboration. The meeting point was and is the Norwegian Institute for Bioeconomics (NIBIO) in Grimstad - which has integrated fish farming and horticulture in a pilot plant for aquaponics. There is also extensive work on optimizing growth conditions for different types of lettuces and University of Agder has been involved in both sensor and growth light experiments. Recently the two companies delivered a combined aquaponic facility to Tvedestrand Videregående (upper scondary school).

Perspective:
When local welfare associations produce fish and vegetables in a warehouse "downtown", things are turned upside down to a degree that analysts claim that this shift will be among the most significant in the time we are entering. There are therefore high expectations for the technology Panponic represents. Internationally, huge investments have been made in water-based growth systems during last ten years, and the market is now undoubtedly establishing itself. One explanation is that the LED technology, which is used in the growth light rigs in our deliveries, is now at a sustainable cost level.

The solutions:
Through several years of research, development processes and operational follow-up of hydroponic facilities, Panponic has now established a solid platform of experience and competence. Panponic combines in-house solutions and representation of other suppliers in project deliveries. The product range covers system, lighting, water, nutrient and cultivation solutions. Construction deliveries have been made to universities, vocational schools, kindergartens, restaurants and Norwegian homes. Panponic also see that the products are interesting for horticulture, groceries wholesalers, trade, office environments, canteens, housing associations, etc. The cultivation facilities can be delivered for both indoor and outdoor use.

In connection with the construction of a test and demonstration facility in the center of Arendal, the company also chose to test a business concept «Bygartneriet» in 2018-19. The area was approx. 200 sqm of which the horticulture itself - or hydroponics - amounted to 140 sqm. The demonstration plant had a capacity of 50 thousand plants a year. Customers were local restaurants and cafes as well as private households. The sale combined sales of home equipment for hydroponics with vegetable sales from own production.

The technology
In hydroponic systems, water with added nutrients is used for useful crops to grow and thrive. In addition to nutrients, the plants must have light, either sunlight or artificial light (lamp light or LED light). There are a number of different hydroponics systems, depending on the space available, the type of plant to be grown, the purpose of the cultivation, and whether the system is to be placed indoors or outdoors. Panponic has chosen to focus on systems based on reuse (recycling) of water and nutrients. The plants consist in principle of a tank with nutrient solution, a container for the plants, and a pump for circulating the nutrient through the root system of the plants at regular intervals. By circulating the water, the needed oxygen is also supplied.

Advantages of hydroponics systems:

  • The systems are based on recycling of nutrient solution that provides 100% utilization of water and nutrients.

  • Large production on small areas, fast growth and good plant quality. In indoor systems, it can take 6-7 weeks from sowing to finished lettuce.

  • No problems with weeds and pests (eg snails) in outdoor systems.

  • Minimal problems with plant diseases or insects.

  • Pesticides are not used.

  • Can do without irrigation for a long time, up to 1-2 weeks depending on tank volume.

  • Decorative systems that also provide a better indoor environment (air quality, humidity).

Spin-off, production and sales of Nutrients
Panponic Biosystems has developed its own nutrients solution adapted to Norwegian water quality. In order for green plants to grow and thrive, a number of macro- and micro nutrients are necessary. The macro nutrients are needed in relatively high concentrations, while the micro nutrients are only demanded in low concentrations.

Panponic makes and sell concentrated nutrient solutions that are mixed into the water of the plants. The concentrated nutritional must be made as two different solutions. Panponic has called them Nutri-A and Nutri-B. If they are mixed, phosphorus will precipitate metals and calcium so that these substances will not be available to the plants. For the correct nutrient concentration to the plants, add 4 ml Nutri-A and 4 ml Nutri-B per liter of tap water. This gives a guideline (EC) of 1.0-1.2 mS / cm, solute (TDS) of 550-600 mg / l (ppm) and pH 5.7-6.0 which will be well suited for lettuces and most herbaceous plants, as well as strawberries and tomatoes. Nutri-A contains nitrogen such as NO3- and NH4 +, calcium and chelated iron, zinc, boron, copper, molybdenum and manganese. Nutri-B contains phosphorus, potassium, magnesium and sulfur.

Read More