45%

Higher Yield

Indoor growing units with Agrify’s LEDs have 45% higher yield than conventional HPS lights

82%

CAGR

in revenue growth, 2019 - 2020

386

Vertical Farming Units

deployed since Agrify’s founding and 1,140 units in the backlog


The Path to Drawdown: LEDs

Light-emitting diodes (LEDs) were originally invented in 1994 as high-brightness, high-efficiency light bulbs. LEDs work like solar panels in reverse: they convert electrons to photons instead of the other way around. For the same amount of light, LEDs use 90% less energy than incandescent bulbs, and half as much as compact fluorescents. While other lighting technologies convert energy into heat (and most of it wasted), LEDs turn 80% of their energy use into light.

LED lighting has many environmental advantages. Its efficiency in converting energy into light, rather than heat, helps reduce electricity consumption and air-conditioning loads. For people without access to ample energy, LEDs can be powered with small solar cells and can replace expensive kerosene lamps and their noxious fumes and emissions. Where LEDs are used in street lights, they can save up to 70% of energy and substantially reduce maintenance costs.

Project Drawdown projects that if LED lighting becomes widely used in the residential and commercial lighting market, it can help avoid between 10.2 - 10.8 gigatons of CO2 emissions in residences, and between 5.9 - 6.7 gigatons in commercial buildings. To achieve this, the global market share of LEDs will have to scale rapidly:

  • In 2018, LEDs comprised 3% of the global commercial lighting market and 2% of the residential lighting market
  • By 2050, LEDs should account for 95% and 90% of the residential and commercial markets, respectively
  • That’s 12.82% CAGR for residential LED, and 11.21% CAGR for commercial LED lighting between 2018 - 2050.

About

Agrify Corporation (stock ticker: AGFY) provides biotechnology hardware and software products for indoor agriculture. These products include indoor growing solutions, LED grow lights, environmental threat migration, and integrated grow racks for the cannabis and hemp marketplace. Headquartered in Burlington, Massachusetts,

AGFY's Role in Drawdown

Agrify provides highly advanced and proprietary precision hardware and software growing solutions for indoor agriculture. What their product promises is a new approach to indoor cultivation that’s process driven through technology and measured via data and analytics.

Agrify’s core products are their Agrify Vertical Farming Unit, which is an integrated hardware architecture that houses indoor plants, and their Agrify Insights, a subscription-based software that analyzes the data collected by their vertical farming unit and optimizes agricultural output.

Agrify offers a range of LED grow lighting that can be integrated into their vertical units. Their LEDs offer more light than typical lighting fixtures and enables customers to control over the light’s wavelength.

In addition to being more efficient, AGFY’s lights help push forward the indoor agricultural industry, a critical component of climate adaptation as weather patterns shift.

AGFY: What We Like

We’ll update this section once Agrify makes more of their sustainability information available.

AGFY: What We Want to See Improve

Report GHG Emissions


As a young company, Agrify doesn’t yet report any sustainability information. Because their operations are small and they outsource (p. 27) their manufacturing to third party contract manufacturers, we don’t think their direct GHG emissions are high. But we would like to see this confirmed through accurate tracking and reporting of their emissions in an annual sustainability report.

Set Science-Based Emissions Reduction Targets


Once they start reporting key sustainability metrics, we then urge Agrify to set clear, science-based targets for reducing emissions to be in line with the goal of staying below 1.5°C of global warming.

Diversify Customer Base


Agrify reported (p. 32) that three customers accounted for 79.2% of their total revenue in 2020, and two customers accounted for about 99% of total revenue in 2019. As they’re aware, this places Agrify in a precarious position in the event of disruption in demand from these major customers.

Other LEDs Stocks in the Climate Index

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