Oatley Shares fall on lower growth forecasts and higher costs

Alternative dairy producer Oatley reported lower forecast revenues and profit in Q3 due to challenges in production, supply chain issues, COVID in Asia, and inflation. The Swedish headquartered company listed on Nasdaq revised revenue forecasts for 2022 downwards from $800 to $700-$720m (9-12% growth) for the full year sending shares falling. Investor confidence was impacted by high investment costs and lower operating margins. The company still committed to EBITDA positive by end of 2023.

Oatley Investor Presentation

Kalera doubles revenues as it exceeds target yields, focusing on profitability by end 2023

In its Q3 results, Nasdaq listed Kalera (KAL) one of dozens of vertical farming companies, announced revenues of $1.7m for Q3, doubling year on year vs Q3 2021. The management team stated a goal to achieve break-even cashflow by end of 2023, focusing on further cost reductions, operational enhancements and addressing capital needs. As a sign of growing investor concern, Kalera shares are trading at a fraction of the initial opening price. The company is operating this year with an expected $14m EBITDA loss.

Nasdaq: Kalera Q3 Presentation

Federated Hermes and Finance Earth launch Nature Fund with £30m UK Government Investment

Finance Earth and Federated Hermes announced the UK Nature Impact Investment Strategy, a blended finance solution for the UK’s natural capital market aimed to support recovery of nature in the UK and provide return for investors. The strategy also included  seed investment of £30 million from the UK Department for Environment, Food and Rural Affairs (Defra) for England-based investments, which was announced by Therese Coffee alongside other nature restoration investments, at COP27

Finance Earth announcement

AeroFarms to open in Qatar, expanding Middle East presence

AeroFarms Vertical Farm operator, Qatar Free Zones Authority (QFZA) and Doha Venture Capital (DVC) announce partnership to build a new indoor vertical farm in the Qatar Free Zone (QFZ). This expands AeroFarms presence in the Middle-East, it previously launched in the UAE in 2021. This is just one of many Vertical Farms opening or operating across the Middle-East as countries look to the technology to improve food security and availability.

Company News Announcement

Global Biofuels Market set to exceed $200B by 2030

According to latest research by Precedence Research the global biofuels market could exceed $200B by 2030. These fuels are used in transportation and typically generated from biomass such as waste foods, food oil, agricultural products. Products such as bio-mass diesel, Sustainable Aviation Fuel (SAF) are made by mixing the fuel with petroleum products and can help decarbonize the transportation sector.

Airbus 330 "Voyager" - Royal Air Force
Airbus 330 "Voyager" - Royal Air Force

As a sign of growing confidence in alternative sustainable fuels, the RAF (Royal Air Force) completed the world’s first large bodied 100% SAF (Sustainable Aviation Fuel) flight test using a converted A330 ‘Voyager’ aircraft. The fuel was provided by Air BP and the flight was conducted with Rolls Royce and Airbus Engineers

Voyager 100% SAF Flight

Market, Government and Regulatory

“Brazil is Back” – President Lula vows to halt deforestation

Of all the big announcements at COP27, maybe one of the most significant for the natural world was president elect Lula announcing in his speech to the conference that he would stop deforestation and strive undo some of the environmental degradation under the previous administration.

Coverage by the Guardian Newspaper

Verra launches Nature Advisory Group to support development of a biodiversity methodology

Verra the climate offsets standard setter has launched the SD VISta Nature Framework Advisory Group (AG). The group will guide the development of a support the development of the biodiversity methodology for assessing and quantifying the benefits from conservation and restoration activities.

FDA approves first pre-market consultation of lab-grown meat

The U.S. Food and Drug Administration (FDA) agency evaluated the processes and approach proposed by UPSIDE Foods. The company plans to use animal cell culture technology to take living cells from chickens and grow the cells in a controlled environment to make food products. The agency stated it was willing to work with other companies, paving the way for more lab-grown meat

Full FDA report

CFA Publishes Recommendations on integrated Natural Capital into the core Investment Process

A new report published by CFA Institute outlines key concepts for investment professionals to integrate natural capital and biodiversity in the investment process.

CFA Report

Canadian Prime Minister to attend UN Biodiversity Summit, COP15

According to Investing.com the Canadian Prime Minister will attend the December COP15 summit, moved to Canada this year from China due to the ongoing COVID pandemic. More business leaders are expected to attend this summit than for any previous UN bio-diversity summit as the UN backed programme focuses on countries agreeing the GBF (Global Biodiversity Framework), setting targets for nature preservation and conservation

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