Mar 8, 2016

SunSelect, Caterpillar to Collaborate on Greenhouse

Caterpillar Inc. and SunSelect Produce, Inc. announced a strategic collaboration that will take the waste products of Caterpillar’s combined heat and power cogeneration facility in Mossville, Illinois, and put them to productive use in SunSelect hydroponic greenhouses.

The agreement is subject to regulatory approvals, satisfactory due diligence, permitting and closing conditions.

SunSelect will purchase real estate adjacent to Caterpillar’s energy generation facility, Advanced Tri-Gen Power Systems (ATPS), to construct a hydroponic greenhouse. The greenhouse is expected to utilize excess thermal energy and carbon dioxide from ATPS’s natural gas fired turbines. By providing low grade heat and abundant CO2, the collaboration will maximize healthy plant production in the SunSelect facility and allow for more efficient use of Caterpillar’s power generation plant, Caterpillar said.

The SunSelect greenhouse will operate with a year-round growing season, serving as the company’s Midwest hub for both production and distribution. The greenhouse operations are expected to add up to 300 permanent local jobs when fully operational, according to Caterpillar.

Reinhold Krahn, director of SunSelect said, “This collaboration is a significant step in our long-term growth strategy. Building on our existing distribution footprint, this Midwest base will allow us to expand our ability to grow fresh and healthy vegetables, safely and responsibly, on the smallest amount of land possible.”

Subject to permitting, regulatory approvals and other required steps, it is anticipated that the agreement will close in the second quarter of 2016.