Fusion Farms is located in a qualified Opportunity Zone and is the first hurricane-protected, indoor, vertical produce farm located in Puerto Rico.

Our 11,500 square foot concrete building has the capacity for 80,640 total plant net pots which translates to a production capacity of 1,183,000+ ounces of produce per month.

Our pilot project will utilize deep-water rafts to grow mint, basil and microgreens in Phase 1 without soil under LED lights in a controlled environment. Our business model below shows the ability to generate $414,000+ per month in Net Profit from both plant and fish sales.

Our grid-tie solution using renewable energy such as solar, battery backup and generators means that Fusion Farms will not be dependent on the power company and can minimize energy costs.

Tilapia housed in tanks outdoors will be the engine of nutrient-rich water to fuel the plant growth and deliver seed-to-harvest produce in as little as 21 days. Our carousel grow cycle means we can grow our produce year-round with consistent results.

Fusion Farms represents a "fusion" of innovation, talent, impact, urban farming, and food security for the island of Puerto Rico.

Post-Hurricane Maria, Puerto Rico imports 95% of its fresh produce.

With 30 inches of rain in some areas and wind gusts up to 175 mph, Maria devastated Puerto Rico's struggling agriculture. It is clear, Puerto Rico needs a new sustainable agricultural model to feed a population of over 3 million people. 

Fusion Farms creates a solution for the island of Puerto Rico and for its communities that face environmental, climate and economic challenges, using a micro-grid, sustainable Controlled Environment Aquaponics (“CEA”) facility implementing vertical farming systems that use 1/10th of the water compared to traditional farming techniques.

Here are the main problems for which we have created this solution:

• 90% or more of the food consumed on the island of Puerto Rico is shipped in, traveling a minimum of 1,500 miles for weeks at a time.+
• 48% of the population live below the federally defined poverty line.*
• 27% of Puerto Ricans are on some form of government subsidies.*
• Puerto Rico Industrial Development Corporation (PRIDCO) has tens of millions of square feet of empty buildings, abandoned in the ongoing economic downturn.
• Ongoing economic crisis, no new jobs, intellectual flight from the island, 39% labor participation rate.**
• 80% of farms were destroyed by Hurricane Maria, just one of two devastating hurricanes where recovery still continues.

Fusion Farms has submitted an application to PRIDCO, which was approved on September 26, 2018. The application is to lease 11,500 square feet of a fully concrete, hurricane-protected industrial warehouse space to be converted to a micro-grid Controlled Environment Aquaponics facility in Mayagüez, Puerto Rico using renewable energy.

Fusion Farms is pioneering the urban farming solution for an island that is starving for food sovereignty. The impact this will have on the island is immeasurable. 

We are grateful for the support you provide to make a difference in the agricultural climate and future for Puerto Rico.

+Source

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Fusion Farms (“FF”) combines elements of hydroponics, aquaculture and renewable energy in a fully contained and controlled environment. Sustainable Closed Environment Aquaponics (“CEA”) provides a unique combination of technologies and agriculture for the production of a variety of food products, as well as fish, in a CEA facility. Extensive scientific research on aquaponic ecosystems has paved the way for repeatable, scalable food production, which represents an innovative advance in the way food supplies will be grown in the future.

The most simple definition of Aquaponics is the combination of aquaculture (raising fish) and hydroponics (the soil-less growing of plants) that grows fish and plants together in one integrated system. The fish waste provides an organic food source for the plants, and the plants naturally filter the water for the fish. The third participants are microbes (nitrifying bacteria). These bacteria convert ammonia from the fish waste first into nitrites, and then into nitrates.  Nitrates are the form of nitrogen that plants can uptake and use to grow.  Solid fish waste is turned into vermicompost that also acts as food for the plants. In combining both hydroponic and aquaculture systems, aquaponics capitalizes on their benefits and eliminates the drawbacks of each.

As a startup, we have completed our market research, conducted a Feasibility Study, prepared our Business Plan, identified our initial property, negotiated our initial lease, designed the renovation of our initial property, negotiated strategic partnerships in support of our Business Plan, hired consultants to provide cost estimates for all aspects of the renovation, and retained our CPA to review and sign off on our financial projections. We are now ready to accept investment funding that will allow all this planning to be put into action.

We designed a system specific to the feasibility studies, energy needs and food production requirements for what is projected as to be a sustainable and profitable project. The plan includes the use of tilapia, floating rafts, vertical grow towers, rainwater collection, solar, and advanced technology controls. 

We have drafted our initial 3D Design for the property; the image to the left provides a visual rendering of the proposed construction and layout.

Our financial projections included in the prospectus have been reviewed and signed by Lcda. Cynthia J. Rijo Sánchez, CPA/Attny.

We have the enthusiastic support of the University of Puerto Rico - Mayagüez and we are pleased that Dr. Rene Esteves and Dr. Luis Mejia are on our advisory board and they are integrating internships for their students from their Department of Agriculture.

Based on the scale of the model and specs, the plan will include both indoor and outdoor facility use, including but not limited to:

• Water use and conservation: Irrigation, flow design, rainwater harvesting

• Vertical and horizontal grow designs

• Fish farming tanks with observation windows

• Testbeds for introducing new fruit and vegetable production.  

• Renewable energy use: solar and wind (grid-tie microgrid with battery storage)

• Technology and automation

• Community use: field trips, observation, research, events, tours, etc.

The Technology

The FF model is intended to create an efficient design based on the current elements, adding advanced technology through engineering rigor that will enhance performance and scalability. 

Sensory and software components that automate the management and daily operation of the system will be included in this design.  Data capture will play a vital role in the success of the model and FF will incorporate the most innovative technologies available within the budget allowed.

By using the Fusion Farms model as a test facility to prove out an effective model, community members will benefit from the transparency of trial and error leading to success. Feasibility, cost containment, use of natural resources, data capture, research, and profitability will all be vital to a thriving program.

The system will be built onsite in Mayagüez with plans to expand to other parts of the island. Because these plans include creating a state of the art sustainable agriculture facility, Fusion Farms can be used to educate and instruct participants in the principles of sustainable agriculture as embodied in the model. 

This will assist in the propagation of the model and attract those interested in sustainable agriculture who may have new and additional thoughts and ideas that can be integrated into the model design, creating dynamic sustainable knowledge and IP. This creates an additional revenue model for subscribers to benefit from updates on innovations and improvements.

Aquaponics allows crops to grow faster, year-round, using less water and minimal labor while minimizing crop failures. Fusion Farms, in the beautiful Mayagüez district of Western Puerto Rico, is the ideal location to use an existing concrete, hurricane-protected PRIDCO building to grow non-GMO produce high in local demand.

You now have the opportunity to own a share from a CEA facility growing these agricultural products. This is a complete turnkey, hands-off investment opportunity: you invest in the CEA operations but we handle the installation, planting, and harvesting. Our farm team then capitalizes on the maximum sales in the local marketplace through Distributor's, Farmer’s Markets, Direct to Consumer and through local Chefs and Restaurants.

Pilot – Year 1:

• 6 mint varieties – 45% Production

• 6 basil varieties – 45% Production 

• Microgreens – 10% Production

• Whole Tilapia – Ancillary Product

Year 2 – reconfirm market demand and feasibility

• Butter Lettuce

• Cilantro

• Plant fruit trees and Moringa 

• Living Bamboo wall along the perimeter

Year 3 – Develop outdoor expansion under hoops

• Strawberries

• Green beans

• Chard

• Peppers

• Tomatoes

• Over 80% of fresh produce is imported
• Only 37% of farms in Puerto Rico have been restored since Hurricane Maria as of December 2018
• Over-inflated prices due to import fees and taxes
• Food often travels over 1,500 miles
• Food is depleted of nutrient value and is poor quality, as the photos to the left demonstrate

• Locally Grown

• Non-GMO Organic standards

• Better tasting

• Farm-to-Table fresh products 

• Consistent quality 

• Stable pricing 

• New varieties 

• More nutritional value

• Food Sovereignty 

• Easy Local Access

• Food consumers can trust

Outdoor fish farming is used to implement the most advanced sustainable methods of growing, producing and harvesting seafood. 

We have chosen tilapia as our nutrient source to grow healthy produce without using chemicals or pesticides.  Our fish will be located outside to minimize humidity and maximize food production space inside.

Though the tilapia is less than 5% of our revenue stream, it is our primary source of nutrient value for the plants we grow.

The power supply in Puerto Rico has proven to be unreliable and extremely costly. To provide a hurricane-protected facility, we will be using LED lights and other operational equipment which will be powered by solar, battery backup and diesel generators on a micro-grid system.

• MICRO-GRID 400w Solar Power System on both the roof and the shade Pergola for the fish

• Net-Zero Agreement with PREPA for autonomy and grid-connected backup

• Solar battery storage

• Diesel Backup generator

• Supplement wind power generation considered when economically feasible through real-time data collection

The application of an appropriate rainwater harvesting technology will make possible the utilization of rainwater as a valuable and necessary water resource.  We will harvest rainwater to provide an additional water source for the fish tanks as well as the filtration system for the plants. The roof is designed to capture maximum rainfall to allow for water security when needed.

• Secured relationships with top, local distributors to deliver to restaurants and grocery stores in refrigerated trucks

• Will pursue relationships with cruise lines

• Will hire locals to distribute produce to farmers markets

• Create membership for weekly deliveries through Social Media

• Will use the excess to create canned goods such as mint jelly and pesto to ensure no waste

• Will be positioned for exporting when economically viable

• Will distribute excess to food banks on the island

• Will pursue relationships with Costco, Walmart, Sam’s Club at optimum volume requirement.

Fusion Farms has taken every precaution to protect our investment and yours:

• Qualified Opportunity Zone

• Hurricane-protection in a concrete building 

• Energy autonomy using solar, battery and generators

• Bio-secure netting to prevent pests and disease

• Non-GMO practice to deliver nutritious produce without chemicals or genetic alterations

• Flood protection – elevated building and fish tanks with high margin

• University partnerships with University of Puerto Rico, Mayagüez, University of Arizona, Arizona State University and Santa Fe Community College in New Mexico

• Providing Internships for agriculture students to employ and groom for Phase 2

• Scalable for additional locations in multiple locations around the island

• No import delays

• Very few food miles from farm to table

• Consistency through quality control and controlled environment

• Providing jobs for Puerto Rico

• Superior team to implement and grow a successful and profitable business model

When construction is complete, our facility will have the following production capacity:

Indoor System:

• Vertical Rack Grow System (leafy green vegetables)
• 144 Total Racks, five (5) shelves per rack
• 80,640 Total Plant Capacity
• Three (3) Initial Agricultural Products;
• Basil (65 Racks with Capacity to produce 507,080 ounces per month)
• Mint (65 Racks with Capacity to produce 672,657 ounces per month)
• Microgreens (14 Racks with Capacity to produce 3,423 ounces per month)

Outdoor System:

• Fish Tanks (eight (8) fish tanks under shade)
• Each Tank is 4,000 gallons holding up to 750 Tilapia
• 6,000 Total Fish Capacity
• 800 to 1,000 Whole, Live Fish Capacity per month

Market Pricing:

• Basil – current market retail price $1.23 per ounce (wholesale price $0.65 per ounce)
• Mint – current retail price $1.25 per ounce (wholesale price $0.75 per ounce)
• Microgreens – current retail price $3.75 per ounce (wholesale price $3.50 per ounce)
• Fish – current retail price $2.00 per pound for whole, live Tilapia

Market Demand:

We have relationships with leading food distributors throughout Puerto Rico[i]*. We have substantiated market pricing (retail and wholesale), as well as market demand through these distributors who have confirmed the high market demand for our agricultural products from their customers.

So, when we achieve production at our full capacity, we project we will be able to generate revenues and resulting profits that show an annual return of $397 for every $430 invested, approximately 92% annualized ROI.

[i] *Sources: CLICK HERE TO VISIT REFERENCE PAGE

If you have generated a substantial capital gain from your investments in 2018 – congratulations! However, you may also be dreading the huge tax bill that’s coming your way.

The good news is that the introduction of Opportunity Zones by the Tax Cuts and Jobs Act in December 2017 can provide you with an investment vehicle to defer capital gain tax while using the funds from such gain to invest in opportunities like Fusion Farms.

As noted on the Grant Thornton April 18, 2018 Tax Alert, Puerto Rico was designated as a Qualified Opportunity Zone under the U.S. Tax Cuts and Job Act of 2017 (the “Act”).  By providing for short- and long-term capital gains tax deferral and the potential for significant step-up in basis, the Act aims to spur long-term investments in low-income urban and rural communities throughout the U.S. and Puerto Rico by investing in a qualified opportunity fund.

Learn More About Our Qualified Opportunity Zone

1. To implement a  design in which all elements are preserved, re-used or recycle when possible

2. Use clean waste-to-energy for sustainable primary power/energy requirements creating a low carbon footprint

3. Focus on repeatable, scalable methods to expand commercialization of the model

4. Provide Puerto Rico with all-natural, non-GMO produce

5. Use green/advanced construction materials when available for use in a wide range of regions and environments.

6. Create a resource for community development and learning onsite

7. Follow “best practices” from upper-level management to all employees and staff.

8. Maintain all certification for food handling and food safety

9. Impact the Puerto Rican community by proving out a way to reach food sovereignty

University of Puerto Rico, Mayagüez:

Fusion Farms has partnered with Dr. Rene Estevez and his colleague, Professor Luis R. Mejia-Maymi at the University of Puerto Rico Mayagüez to assist with the design and operation of the Aquaponic system. Rene Esteves, PhD is currently serving a dual role as the Extension Leader for the University of Puerto Rico (UPR) Sea Grant College Program which is headed by Dr. Ruperto Chaparro.  Dr. Esteves is also the Aquaculture Specialist for the UPR Agricultural Extension Service. Previously he’s served as Puerto Rico’s Fisheries Liaison for the National Marine Fisheries Service of the National Oceanic and Atmospheric Administration. Dr. Esteves is a coral reef fish ecologist whose research interests have focused on larval connectivity of commercially important fish species, changes to coral reef fish community structure due to disturbances and fisheries independent assessments. His double role in the UPR is in part meant to strengthen informal education in small sustainable recirculating aquaculture projects that would both increase food security and offer alternative income for low-income rural coastal communities.

University of Arizona:

Dr. Shane C. Burgess is Vice President for Agriculture, Life and Veterinary Sciences, and Cooperative Extension, Charles-Sander Dean of the College of Agriculture and Life Sciences, and Director of the Arizona Experiment Station at the University of Arizona. He has 188 refereed publications, trained 38 graduate students and has received nearly $55M in competitive funding since 1997. His division has a total budget of $135M with over 3,900 students and more than 1,700 employees. He currently serves on the Agri-Business and Water Council of Arizona Executive Committee, the Board of Directors for Arizona Farm Bureau, and the Governor’s Agricultural Best Management Practices Committee for the Arizona Department of Environmental Quality.

Operational Farm Design Consultants:

Fusion Farms has been working with Jorge Casas to focus on the day-to-day operations of the CEA Farm. Jorge and Pedro were successfully operating one of the largest CEA Greenhouse facilities in PR until it was destroyed by Hurricane Maria. 

Jorge understands what it takes to operate an aquaponics farm and will be helping us recruit interns and new hires and make sure they are trained. The entrepreneur brothers set up an expanding distribution network to serve themselves and dozens of other farmers around the island and to help drive the food revolution. With the farming boom comes more farm laborers, drivers and retail workers, and urban produce markets are opening up across Puerto Rico. One such, O-Mrkt in the San Juan suburbs, opened in April 2016 with the Casas brothers as partners.

Tropical Fruit Farm Design Consultant:

Fusion Farms has been working with Sadhu Govardhan, founder of Goverdhan Gardens to focus on the unique challenges of growing tropical fruits native to tropical ecosystems in and around a CEA facility. Sadhu Govardhan is an independent thinker, eco-organic farmer, tropical rare fruit connoisseur, bamboo specialist, and researcher. Sadhu will provide inputs into crop selection for maximum diversification, as well as assist us in designing a living bamboo wall for shade and security.

Aquaculture Design Consultant

Fusion Farms has been working with Dr. Mike McGee of Caribe Fisheries, Inc. to design the fish component of the system.  Fusion Farms will be working with Caribe Fisheries to supply the hatchlings and original Tilapia stock for our CEA.

Dr. McGee owns and operates Caribe Fisheries Inc. a tropical aquaculture farm in Lajas, PR. He is involved in all phases of aquaculture and particularly those which may be important to improving productivity and quality of life in PR. Most recently he introduced a new aquaculture species to this hemisphere, the Basa catfish. Puerto Rico is currently the only nation in the western hemisphere to culture this food fish. Exports from Vietnam to other countries of the world are over $1,000,000,000 a year and there is good potential in all tropical regions of the western hemisphere to culture this valuable species(1). He also offers training and workshops related to aquaculture. He is working with Fusion Farms and other institutions to increase awareness of aquaculture in PR.

*Source

Dr. Michael V. McGee has extensive experience and training in the areas of aquaculture, aquatic ecology, water chemistry and fisheries science. For the past 18 years he has successfully developed and operated his own aquaculture-agriculture business Caribe Fisheries Inc, located in the Lajas Valley. Caribe Fisheries produces ornamental and food fish species, freshwater shrimp, aquatic plants, vegetables and herbs for sale in Puerto Rico.

Cynthia J. Rijo Sánchez is a Lawyer, Notary Public and Certified Public Accountant in the Commonwealth of Puerto Rico.

She obtained her  Bachelor's Degree in Business Administration with a concentration in Accounting from the University of Puerto Rico, Mayagüez Campus, graduating with Magna Cum Laude honors. She obtained her Juris Doctor at the Interamerican University of Puerto Rico graduating with honors  Summa Cum Laude.

After working for 3 years in Virginia, as an auditor for the Department of Defense of the United States and having participated in several internships, Cynthia opened her private practice during the month of February 2014. Since then she has provided legal and accounting services to individuals, companies, churches and other nonprofit organizations.

She is currently the President-elect of the Association of Certified Public Accountants of Puerto Rico of the Mayagüez Chapter.

We believe it's possible to make high returns per square foot with a variety of crops. Please see our CPA reviewed and signed financial projections to understand our financial model.   More importantly, the food produced will be fresh, natural, nutritious and grown locally.

Feasibility studies will determine the best crop for the island as well as the system. Many factors will influence the system design as well as the food production outputs. Faster growing times with year-round production will greatly enhance the ability to deliver wholesome foods to the communities in Puerto Rico including restaurants, grocery stores, farmers markets, and other retail distribution.

We Will...

• Create a farm in a building
• Bring people and communities together
• Regenerate unused real estate
• Create viable examples of Urban Agriculture
• Create a "nothing is wasted" approach
• Create lower energy solutions to manufacture, transport and maintain sustainable food supplies; all with a smaller carbon footprint
• Create as many outputs as possible from minimal inputs
• produce alternative plant food sources fish in proteins and other powerful elements
• Connect food sources with nutraceutical alternative for homeopathic and herbal medicine 
• Reconnect people with growing food; excite, inspire and engage!

We believe indoor aquaponics is disruptive and forward thinking and will create new opportunities for Puerto Ricans to learn a different farming model that minimizes the impact of external conditions in order to grow the fresh produce the island needs.

If Puerto Rico were able to replace 90% of its agricultural imports with locally grown produce, it would represent about $3.15 billion that would stay in the island’s economy and around 85,000 new jobs in the agricultural sector. 

Source

By using the Fusion Farms model as a test facility to prove out an effective model, community members will benefit from the transparency of trial and error leading to success. Feasibility, cost containment, use of natural resources, data capture, research, and profitability will all be vital to a thriving program.