Startup Spotlight

As global urbanisation escalates, so do environmental concerns. To keep up with the needs of growing populations, there is a need for more affordable, sustainable and economically viable mass transit systems. Globally, governments are expressing increasing interest in the transport sector and the technologies that are emerging within it. Very light rail (VLR) technology is at the forefront of this trend. VLR offers a promising solution to current obstacles on the road to a greener society, such as mitigating congestion, reducing carbon emissions, and enhancing accessibility [1]. TDI Greenway aims to facilitate the seamless connection of communities in a safe and environmentally friendly way, offering consumers a greener choice of transport for the future [1].
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 <img loading="lazy" decoding="async" class="alignnone wp-image-6741 size-medium" src="https://wp.floww.io//wp-content/uploads/2024/10/Revolution-VLR-001-2-1-e1730226593280-800x400.jpg" alt="A modern blue and silver train traveling on railway track, showcasing the very light rail (VLR) technology developed by TDI Greenway." width="800" height="400" srcset="https://wp.floww.io//wp-content/uploads/2024/10/Revolution-VLR-001-2-1-e1730226593280-800x400.jpg 800w, https://wp.floww.io//wp-content/uploads/2024/10/Revolution-VLR-001-2-1-e1730226593280-1600x800.jpg 1600w, https://wp.floww.io//wp-content/uploads/2024/10/Revolution-VLR-001-2-1-e1730226593280-768x384.jpg 768w, https://wp.floww.io//wp-content/uploads/2024/10/Revolution-VLR-001-2-1-e1730226593280-1536x768.jpg 1536w, https://wp.floww.io//wp-content/uploads/2024/10/Revolution-VLR-001-2-1-e1730226593280.jpg 2048w" sizes="(max-width: 800px) 100vw, 800px" />
<h2>Industry overview and challenges </h2>
Sustainable transportation requires the ability to support society’s mobility needs while minimising its environmental impact. It also brings into focus the need to protect the mobility needs of future generations [2]. As populations continue to grow, the demand for increased urban fringe connectivity and last-mile rail solutions has resulted in growing pressure on governments to update and enhance mass transport solutions. This is especially important for preventing the phenomenon of urban heat islands, where urbanised areas experience increases in temperatures [3]. Sustainable transportation is essential to the survival of local communities and the continuation of economic growth. Transport must be both cost-effective and capable of adapting to changing demands [2].
The UN reports that as of 2021, the transport sector was responsible for approximately one-quarter of greenhouse gas emissions, while 95% of the world&#8217;s transport energy still came from fossil fuels. In addition, the transport sector was responsible for 57% of the global oil demand, 28% of total energy consumption [4], 32% of nitrogen oxides (NOx) emissions and 14% of particulate matter (PM) emissions [5]. These pollutants significantly harm both our health and that of the environment.  
In response to this environmental challenge, the UK government has committed to achieving net-zero emissions by 2050 [6]. Furthermore, rail authorities in the UK, EU [7] and North America have also committed to delivering a net-zero rail network in the same timeframe [8]. As part of this initiative, the UK aims to remove all diesel-only passenger and freight trains from its network by 2040 [9]. Existing diesel fleets in the rail sector will need to be replaced with electric vehicles [6]. However, the costs associated with reinstating existing routes on the rail network to improve regional and local connectivity are prohibitively expensive. A significant portion of the cost of decarbonisation initiatives in the rail industry comes from upgrading and maintaining existing infrastructure. In the UK, Network Rail spends £7bn annually on the materials needed to maintain and build railway systems [10]. 
Revolutionising the transport sector to meet both government targets and the needs of growing populations around the world will require the implementation of emerging inventions powered by renewable energy [11]. In recent years, there has been a shift in the transport landscape surrounding light rail and VLR. This transformation, driven by advancements in technology and infrastructure, has been particularly influenced by the significant cost savings offered by VLR projects. TDI Greenway is ideally positioned to deliver mass transit rail projects that support government targets to achieve decarbonisation, while offering affordable, green transport solutions to consumers.
<h2>Introducing TDI Greenway</h2>
TDI Greenway aims to deliver more affordable mass transit systems for local and national governments to further net-zero emissions targets. Ultimately, the company plans to offer green transport options to commuters.
The company strives to be the market leader in VLR technology with lightweight vehicle solutions that are quicker, easier and more cost effective to deploy than alternative heavy-rail solutions. TDI Greenway states it has a market-ready VLR solution with the Revolution VLR, its award-winning, first-of-its-kind vehicle designed and manufactured in the UK.
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<img loading="lazy" decoding="async" class="alignnone wp-image-6742 size-medium" src="https://wp.floww.io//wp-content/uploads/2024/10/1-Preseries-with-Valence-amp-Lineside-charger-Ironbridge-1-e1730226659627-800x420.jpg" alt="A sleek modern electric train stationed at a railway track, showcasing the very light rail (VLR) technology solutions by TDI Greenway. " width="800" height="420" srcset="https://wp.floww.io//wp-content/uploads/2024/10/1-Preseries-with-Valence-amp-Lineside-charger-Ironbridge-1-e1730226659627-800x420.jpg 800w, https://wp.floww.io//wp-content/uploads/2024/10/1-Preseries-with-Valence-amp-Lineside-charger-Ironbridge-1-e1730226659627-1600x840.jpg 1600w, https://wp.floww.io//wp-content/uploads/2024/10/1-Preseries-with-Valence-amp-Lineside-charger-Ironbridge-1-e1730226659627-768x403.jpg 768w, https://wp.floww.io//wp-content/uploads/2024/10/1-Preseries-with-Valence-amp-Lineside-charger-Ironbridge-1-e1730226659627-1536x806.jpg 1536w, https://wp.floww.io//wp-content/uploads/2024/10/1-Preseries-with-Valence-amp-Lineside-charger-Ironbridge-1-e1730226659627.jpg 1920w" sizes="(max-width: 800px) 100vw, 800px" />
<h2>What does TDI Greenway do?</h2>
The company develops VLR solutions that run on battery-only propulsion with the aim of delivering sustainable mass transit systems for net-zero operation. According to TDI Greenway, its vehicles run on cheaper infrastructure than heavy rail systems, offering significant cost savings across transport projects. TDI Greenway’s vehicle fleet includes the Revolution VLR, Lync VLR and Orbit.  
The Revolution VLR is a bi-directional vehicle with a composite bodyshell made from recycled carbon fibre. It facilitates the low-cost connectivity of regional and rural areas. A range of power units for the Revolution VLR are in development, including electric battery-only, fast charging propulsion systems which run without the need for costly catenary pantograph systems. Lync VLR is a bi-directional light urban transit vehicle designed to connect outlying communities with city centres and main transport hubs. The Orbit is a unidirectional very light urban transit vehicle designed for city centres, airports, park-and-ride applications, and last-mile transport solutions. 
TDI Greenway’s VLR solutions are underpinned by a focus on cost savings across the vehicle build and supporting infrastructure, and the company claims to offer a more affordable maintenance and operational solution compared to traditional heavy rail systems. By using lightweight vehicles, the cost of the infrastructure on which its proprietary vehicles operate is reduced by up to 60%, the company asserts.  
Lighter vehicles use less power, which makes it easier to deploy battery-powered solutions. The company’s Battery-as-a-Service (BaaS) model is designed to reduce upfront costs and enable the widespread adoption of new vehicle technologies. This approach aims to minimise financial barriers into the market and allow for the broader implementation of advanced systems. 
TDI Greenway’s modular design approach is said to enable rapid vehicle build and deployment, ensuring that systems can be implemented quickly and efficiently. The company reports that the modular construction of each vehicle also supports cost-effective maintenance across the lifespan of the fleet. 
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<iframe loading="lazy" title="Revolution VLR Vehicle" width="500" height="281" src="https://www.youtube.com/embed/iOibZf_QYcU?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>

Rupert Symons

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Rupert is an engineer and European patent attorney with over 20 years of experience in monetising intellectual property. Rupert acquired TDI Greenway in 2018 to commercialise its key technologies in VLR. Rupert’s track record of successfully commercialising technologies in the automotive and rail sectors is furthered by his substantial experience in product innovation and commercialising businesses.

Meet the founder 

<h2>The next steps </h2>
The company has chosen to use Floww’s innovative infrastructure to facilitate its funding efforts as it pursues its future goals. In 2024/25, TDI Greenway aims to expand its manufacturing team and further develop its vehicle platforms, BaaS technology and UK deployment model. It also plans to expand its international sales network and continue to develop its rail ecosystem to deliver a complete turnkey transport solution.
As a reflection of the company’s mission to deliver advanced solutions that meet the needs of the industry, TDI Greenway has partnered with Eversholt Rail, a leading UK rolling stock operator, for its market-ready Revolution VLR vehicle. It plans to undertake passenger trials in the UK from 2026 with the aim of solidifying Revolution VLR as the next generation of passenger trains.
As interest in VLR grows in the UK and internationally, TDI Greenway is focused on driving innovation in this emerging gap within the transport sector, while supporting UK manufacturing on a global scale. With plans for future projects and collaborations in the pipeline, the company reports that it is dedicated to driving positive change in the rail industry and beyond [1].
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*Floww Markets Limited is a company authorised and regulated by the Financial Conduct Authority (FCA). Firm reference number 980098.  
 The information and imagery contained within this article does not represent the opinions of Floww. Floww does not have a view on opinions provided by TDI Innovations Ltd in this article and elsewhere where they may be expressed, and is not responsible or liable for the information within this article.

Sources:
<ol>
<li><a href="https://transportdesigninternational.com/very-light-talks-1-unveiling-insights-about-vlr-in-the-international-market-with-sam-sharp/">https://transportdesigninternational.com/very-light-talks-1-unveiling-insights-about-vlr-in-the-international-market-with-sam-sharp/</a></li>
<li><a href="https://transportgeography.org/contents/chapter4/transportation-sustainability-decarbonization/">https://transportgeography.org/contents/chapter4/transportation-sustainability-decarbonization/</a></li>
<li><a href="https://www.epa.gov/heatislands">https://www.epa.gov/heatislands</a></li>
<li><a href="https://www.un.org/sites/un2.un.org/files/media_gstc/FACT_SHEET_Climate_Change.pdf">https://www.un.org/sites/un2.un.org/files/media_gstc/FACT_SHEET_Climate_Change.pdf</a></li>
<li><a href="https://www.gov.uk/government/statistics/transport-and-environment-statistics-2023/transport-and-environment-statistics-2023">https://www.gov.uk/government/statistics/transport-and-environment-statistics-2023/transport-and-environment-statistics-2023</a></li>
<li><a href="https://commonslibrary.parliament.uk/research-briefings/cbp-9888/">https://commonslibrary.parliament.uk/research-briefings/cbp-9888/</a></li>
<li><a href="https://blogs.worldbank.org/en/transport/climate-action-how-can-eu-countries-unlock-potential-railways#:~:text=Railways%20are%20at%20the%20heart,of%20energy%2Drelated%20GHG%20emissions">https://blogs.worldbank.org/en/transport/climate-action-how-can-eu-countries-unlock-potential-railways#</a></li>
<li><a href="https://www.cn.ca/en/news/2024/07/cn-announces-net-zero-target-approved-by-science-based-targets-i">https://www.cn.ca/en/news/2024/07/cn-announces-net-zero-target-approved-by-science-based-targets-i</a></li>
<li><a href="https://lordslibrary.parliament.uk/strategies-to-address-issues-in-the-transport-system/">https://lordslibrary.parliament.uk/strategies-to-address-issues-in-the-transport-system/</a></li>
<li><a href="https://resiliencefirst.org/news/what-are-decarbonisation-opportunities-rail-sector-and-how-can-technology-help">https://resiliencefirst.org/news/what-are-decarbonisation-opportunities-rail-sector-and-how-can-technology-help</a></li>
<li><a href="https://www.nationalgrid.com/stories/journey-to-net-zero-stories/future-transport-driving-change-next-10-years">https://www.nationalgrid.com/stories/journey-to-net-zero-stories/future-transport-driving-change-next-10-years</a></li>
</ol>

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TDI Greenway 

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1-Preseries with Valence &amp; Lineside charger Ironbridge (1)

It is estimated that people consume 75% more resources each year than the Earth can naturally regenerate [1]. Government initiatives and UN Zero Waste targets are focused on making the current linear economic system more sustainable using a circular economy model [1]. Innovate Recycle claims that carpet is one of the least recycled materials in the world. The company’s unique recycling process transforms end-of-life carpet into reusable polypropylene, extracting the value from waste carpet and diverting plastics from landfills. 
<h2>Industry overview and challenges </h2>
The global carpet and textile industries are facing a significant waste problem, with the UK alone generating approximately 500,000 tonnes of carpet waste every year [1]. The US carpet industry produces nearly 12 billion square feet of carpet annually, with only 5% of this being recycled [2]. Globally, the fabric and textile industry contribute 92 million tonnes of textile waste each year [3]. While this issue represents an environmental challenge, it also represents a substantial market opportunity. 
Although around 75% of carpets are made of valuable materials like nylon and polypropylene which are not typically biodegradable [1], it is believed that less than 2% of the 500,000 tonnes of end-of-life carpet produced in the UK each year is recycled [1]. Most carpet recycling companies send the waste flooring they receive to incinerators or landfills, with Innovate Recycle finding that 80% of this waste is plastic-based. This process leads to increasing levels of harmful and toxic CO2 emissions into the atmosphere [4]. Innovate Recycle further reports that carpet recycling in the UK has historically been difficult because most carpet contains a blend of plastic and wool materials. Carpet and textile flooring are particularly problematic when disposed of incorrectly in landfill sites, as the synthetic materials that make up these materials can take thousands of years to decompose.   
By 2019, the UK carpet industry was estimated to have caused £16.5m in climate harm [5]. This was directly attributed to the incineration of around 130,000 tonnes of carpet, which released approximately 243,000 tonnes of CO2 into the atmosphere [5]. Thousands of tonnes of carpet waste are dumped or incinerated annually in the UK and Europe, contributing to environmental pollution and resource wastage [5]. In 2018, it was estimated that only 56% of the 500,000 tonnes of end-of-life carpet waste created in the UK was sent to landfills [5]. Of the remaining carpet waste, 73% was diverted to incineration, 22% was shredded for use in equestrian arenas, and only 2% was recycled into a non-shredded product from carpet fibres. Staggeringly, less than 1% was reused [5]. To further complicate matters, the Environment Agency has recently restricted the use of plastic and carpet waste in equestrian surfacing, requiring an environmental permit for use [6]. To date, this has been the only realistic alternative for repurposed carpet waste.
Innovate Recycle claims that over 80% of end-of-life carpet made of synthetic plastic can be reclaimed and reused. However, there is currently no large-scale, viable process to recycle this material. Despite this, the pressure is mounting for industry stakeholders as national net zero targets reshape carpet waste laws. The UK government is actively introducing Extended Producer Responsibility (EPR) legislation, which mandates certain industries to take responsibility for the entire lifecycle of their products [7], including the costs associated with the end-of-life management of the goods they produce and sell [8]. While the EPR framework has yet to formalise a scheme for carpets in the UK [9], The UK’s Department for Environment, Food &amp; Rural Affairs (DEFRA) may propose an EPR scheme for bulky waste, including mattresses, furniture and carpets by 2025 [7]. This regulatory shift has inspired urgent calls for industry-wide collaboration and the development of the circular economy for flooring products in the UK [10].  
With the potential of a circular economy, new opportunities are emerging through the extraction of polypropylene, PET, and nylon fibres from carpet waste [11]. Innovate Recycle believes that there is significant value in the carpet waste that is currently being sent to landfills and polluting the environment.  
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<img loading="lazy" decoding="async" class="alignnone size-medium wp-image-6731" src="https://wp.floww.io//wp-content/uploads/2024/10/image-800x450.png" alt="" width="800" height="450" srcset="https://wp.floww.io//wp-content/uploads/2024/10/image-800x450.png 800w, https://wp.floww.io//wp-content/uploads/2024/10/image-768x432.png 768w, https://wp.floww.io//wp-content/uploads/2024/10/image.png 976w" sizes="(max-width: 800px) 100vw, 800px" />
<h2>Introducing Innovate Recycle</h2>
Innovate Recycle claims to be the first and only company in the UK to fully recycle end-of-life carpet at volume, transforming waste to worth. Its flagship product, the Innovate rPP NORPLAS pellet range, provides a recycled polypropylene (rPP) content solution, which is intended to contribute to Zero Waste goals set out by the UK government, according to company.  
The company reports that it has developed a circular alternative to how the UK currently deals with waste carpet. It has designed a unique solution to deconstruct polypropylene carpet, reclaim the component parts, and return them for use in UK manufacturing. This aims to provide a sustainable waste management solution across major industries producing carpet waste including retail and domestic fitters. 
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<img loading="lazy" decoding="async" class="alignnone wp-image-6730 size-medium" src="https://wp.floww.io//wp-content/uploads/2024/10/20220704_135347-002-min-1-e1729087381745-800x504.jpg" alt="Image of people in protective gear in a facility surrounded by machinery at Innovate Recycle, recycling post-consumer and industrial carpet at volume. " width="800" height="504" srcset="https://wp.floww.io//wp-content/uploads/2024/10/20220704_135347-002-min-1-e1729087381745-800x504.jpg 800w, https://wp.floww.io//wp-content/uploads/2024/10/20220704_135347-002-min-1-e1729087381745-768x484.jpg 768w, https://wp.floww.io//wp-content/uploads/2024/10/20220704_135347-002-min-1-e1729087381745-1600x1008.jpg 1600w, https://wp.floww.io//wp-content/uploads/2024/10/20220704_135347-002-min-1-e1729087381745-1536x968.jpg 1536w, https://wp.floww.io//wp-content/uploads/2024/10/20220704_135347-002-min-1-e1729087381745-2048x1290.jpg 2048w" sizes="(max-width: 800px) 100vw, 800px" />
<h2>What does Innovate Recycle do? </h2>
Innovate Recycle aims to recycle post-consumer and industrial carpet at volume, focusing on polypropylene-based carpets and the retrieval of polypropylene and calcium carbonate. It reports that it takes end-of-life and offcut carpet from local authorities, waste handling partners, industry distributors, retail partners, and large-scale, new homes carpet fitters.  
The company reports that it is the only business in the UK capable of recycling end-of-life polypropylene (PP) carpet into an almost pure polypropylene pellet. It asserts that this process is a UK first, solving the hugely damaging plastic pollution problem with a financially lucrative business model. The process is said to address the waste issue by supplying high-quality materials for manufacturing. 
Utilising a proprietary, fully mechanical process, Innovate Recycle separates PP from the calcium carbonate latex binding in carpets. This reclaimed PP, deconstructed first as fibre is then baled and pelletised. When the reclaimed material is turned into this form, it will be sold to the manufacturing supply chain, via brokers or directly to end users, ready to begin a new product lifecycle. 
Innovate Recycle’s flagship product is the Innovate rPP (recycled polypropylene) NORPLAS pellet range, which it claims is characterised by high tensile strength, appropriate melt flow, and colouring capability. The company sees uses for this product in several verticals including the automotive sector, injection moulding and 3D printing. From 2025, car manufacturers such as Volvo and Peugeot Citroen are planning to use a minimum of 25% recycled plastic, particularly polypropylene, in their new vehicle models [3]. 
With the benefit of a UK exclusivity agreement, Innovate Recycle is using patent-protected proven machinery and technology that was developed and refined in the US to create its first plant in Northampton, England. With this facility, the company’s first process line will process up to 20,000 tonnes of carpet waste per year at full capacity. It will also allow the company to support, enable and advise carpet manufacturers on how to create a more sustainable material benefiting their business.

Joseph Eccleston

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Joseph was born into the carpet industry. After taking over his family’s retail carpet business, he became aware of the amount of the waste generated by the industry every year. This led him to begin researching innovative ways to recycle this waste. Joseph then created the vision and brought together the practical delivery that is Innovate Recycle. He has been leading the company’s development since 2013.

<h2>The next steps </h2>
In 2022, Innovate Recycle established its first facility in Northampton, England. The site is producing around 25 tonnes of polypropylene per week. The company has earmarked a second site in Scotland for 2026.  
Innovate Recycle claims to have proven its concept in 2023 with the first sales of its recycled polypropylene pellets. As of Q4 2024, its main product, the Innovate rPP NORPLAS pellet range, is available for sale for UK manufacturing. 
In the same period, Innovate Recycle is directing its focus on the global import of carpet material, sales and the development of approximately 1,100 tonnes of rPP per month.  
With proof of concept established, the company plans to scale its production, expand its workforce, develop training and maintenance programmes and expand sales opportunities for the recycled polypropylene pellets. 
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*Floww Markets Limited is a company authorised and regulated by the Financial Conduct Authority (FCA). Firm reference number 980098. 
 The information and imagery contained within this article does not represent the opinions of Floww. Floww does not have a view on opinions provided by Innovate Recycle Ltd in this article and elsewhere where they may be expressed, and is not responsible or liable for the information within this article.

Sources:
<ol>
<li style="list-style-type: none;">
<ol>
<li><a href="https://www.weforum.org/agenda/2023/09/carpet-nylon-recycle-circular-economy/">https://www.weforum.org/agenda/2023/09/carpet-nylon-recycle-circular-economy/</a> </li>
<li><a href="https://www.aquafil.com/carpet-recycling/">https://www.aquafil.com/carpet-recycling/</a> </li>
<li><a href="https://theprint.in/environment/carpets-are-actually-one-of-the-least-recyclable-materials-a-uk-factory-is-trying-to-fix-it/1764533/">https://theprint.in/environment/carpets-are-actually-one-of-the-least-recyclable-materials-a-uk-factory-is-trying-to-fix-it/1764533/</a> </li>
<li><a href="https://www.plasticexpert.co.uk/carpet-recycling/">https://www.plasticexpert.co.uk/carpet-recycling/</a> </li>
<li><a href="https://zerowasteeurope.eu/2019/12/greenwash-in-the-uk-carpet-industry-with-only-around-2-reused-or-recycled/">https://zerowasteeurope.eu/2019/12/greenwash-in-the-uk-carpet-industry-with-only-around-2-reused-or-recycled/</a></li>
<li><a href="https://www.gov.uk/government/publications/using-shredded-waste-carpet-in-equestrian-surfacing-rps-248/using-shredded-waste-carpet-in-equestrian-surfacing-rps-248">https://www.gov.uk/government/publications/using-shredded-waste-carpet-in-equestrian-surfacing-rps-248/using-shredded-waste-carpet-in-equestrian-surfacing-rps-248</a></li>
<li><a href="https://www.pwc.co.uk/services/legal/insights/update-on-extended-producer-responsibility-changes-in-uk.html">https://www.pwc.co.uk/services/legal/insights/update-on-extended-producer-responsibility-changes-in-uk.html</a></li>
<li><a href="https://www.valpak.co.ukhttps://wp.floww.io//wp-content/uploads/2022/02/Valpak-White-Paper-Extended-Producer-Responsibility-for-Packaging.pdf">https://www.valpak.co.ukhttps://wp.floww.io//wp-content/uploads/2022/02/Valpak-White-Paper-Extended-Producer-Responsibility-for-Packaging.pdf</a></li>
<li><a href="https://www.floorscape.org.uk/general/how-the-uks-first-carpet-recycling-is-changing-the-future-of-carpets/">https://www.floorscape.org.uk/general/how-the-uks-first-carpet-recycling-is-changing-the-future-of-carpets/</a> </li>
<li><a href="https://www.innovationintextiles.com/industry-talk/moving-towards-epr-for-carpet-waste/">https://www.innovationintextiles.com/industry-talk/moving-towards-epr-for-carpet-waste/</a> </li>
<li><a href="https://www.inerto.com/too-much-of-carpet-waste-still-ends-up-in-landfill-or-incineration/">https://www.inerto.com/too-much-of-carpet-waste-still-ends-up-in-landfill-or-incineration/</a> </li>
</ol>
</li>
</ol>

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Innovate Recycle 

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The agrifood industry faces many challenges today, such as food waste and losses, food fraud and an imbalance of power between middlemen and farmers [1]. As society draws closer to the United Nations’ 2030 Sustainable Development Goals, the industry aims to become healthier, more sustainable and more transparent [1][2]. By investing in technology and improving practices, Two Hands believes tech and reimagined food supply chains can address food loss, food fraud, deliver ESG reporting and democratise supply chain power. The company aims to shift the balance of power away from middlemen and toward fishers, farmers and chefs. Furthermore, the company believes its blockchain-authenticated initiative for measuring, verifying and reporting carbon, greenhouse gases emissions (GHGe) and sustainability is the first-to-market and with it aims to restore trust and transparency between producers, chefs and consumers globally. 
<img loading="lazy" decoding="async" class="alignnone wp-image-6715 size-medium" src="https://wp.floww.io//wp-content/uploads/2024/10/2h-Image-1-800x449.png" alt="Two Farmers crouching in a vibrant green field, inspecting plants together. " width="800" height="449" srcset="https://wp.floww.io//wp-content/uploads/2024/10/2h-Image-1-800x449.png 800w, https://wp.floww.io//wp-content/uploads/2024/10/2h-Image-1-1600x898.png 1600w, https://wp.floww.io//wp-content/uploads/2024/10/2h-Image-1-768x431.png 768w, https://wp.floww.io//wp-content/uploads/2024/10/2h-Image-1-1536x862.png 1536w, https://wp.floww.io//wp-content/uploads/2024/10/2h-Image-1.png 2048w" sizes="(max-width: 800px) 100vw, 800px" />
<h2>Industry overview and challenges </h2>
Food producers face a series of challenges that threaten their livelihoods and the future of the UK farming and fishing industries. Industrialised food production has increasingly commoditised farmers, granting excessive power to supply chain intermediaries [3]. Although food producers bear much of the production risk, the intermediaries and food buyers, such as processors, transport companies and retailers keep, much of the value made in the food supply chain [4]. Most of the profit goes to the middlemen who purchase farm products at low prices while selling the same products at inflated prices to consumers [5]. Farmers face low profits, sometimes far less than 1p of the food they produce [4]. 
The rise of food fraud further exacerbates this issue. Fraudulent activities, such as product misrepresentation or substitutions [6], undermine the trust in the supply chain and threaten farmers’ already thin margins [7]. It is reported that food fraud impacts around 1% of the global food industry and costs up to $40bn annually [8]. Additionally, the scale of food loss represents a considerable loss of economic value for the players in food production and supply chains. Globally, around 13.2% of food produced is lost between harvest and retail [9], while the global value of lost or wasted food is estimated at a staggering $1tn in 2015 [10].  
With the urgent need to halve global food waste at both retail and consumer levels by 2030 [11], farmers are not only dealing with low margins but also grappling with rising production costs driven by the need to meet UK sustainability [12] and net zero targets [13] while adapting to market events such as Brexit [14]. Most farmers lack the time and resources to address these evolving pressures, according to Two Hands. 
Moreover, the demographic profile of farming is concerning. The average age of farmers is 60 globally [15], including in the UK, where nearly four in 10 farmers were already over the age of 65 in 2012 [16]. By 2023, over a third of all farm holders in England were over the age of 65. [17]. This ageing demographic is a sign of the increasing pressures in the industry, including perceptions of low margins [18] and financial instability driving younger generations away [19]. The agricultural sector has struggled to attract youth, further compounding the risks to the industry’s long-term sustainability [20]. As a result, smaller rural communities are declining, and their populations and economic vitality are lost [21].  
In response to the changing industry landscape, embracing technological advancements can help UK farmers optimise resource allocation and improve efficiency [22]. Over and above, farmers need better routes to access the market and greater transparency along the supply chain to ensure that they capture greater value from their produce [4].  
<h2>Introducing Two Hands</h2>
Two Hands (2h) is a platform digitising and authenticating food supply chains directly connecting fishers, farmers, and end-buyers enabling a needed reimagination of supply chains. End-buyers include restaurants, hotels, pubs and hospitals. The company aims to disrupt food supply chains to restore provenance, traceability and human connections to the food industry while having a profound impact on net zero.  
2h plans to reinvent food supply chains using blockchain, smart-tagging and bespoke technology to underpin its solution. The company aims to democratise food supply chains, creating an environment where people, communities, the environment and shareholders are all taken into consideration. 
<img loading="lazy" decoding="async" class="alignnone wp-image-6696 size-medium" src="https://wp.floww.io//wp-content/uploads/2024/10/family-farm-image-from-Google-images-800x450.jpeg" alt="A family of four standing in a green pasture with cows around them on a farm. " width="800" height="450" srcset="https://wp.floww.io//wp-content/uploads/2024/10/family-farm-image-from-Google-images-800x450.jpeg 800w, https://wp.floww.io//wp-content/uploads/2024/10/family-farm-image-from-Google-images-768x432.jpeg 768w, https://wp.floww.io//wp-content/uploads/2024/10/family-farm-image-from-Google-images.jpeg 1024w" sizes="(max-width: 800px) 100vw, 800px" />
<h2>How does Two Hands work? </h2>
2h aims to increase profitability and solve major pain points for both food producers, such as farmers and fishers, and chefs, without increasing their costs. According to the company, producers are recognised and rewarded for their quality and their efforts to positively impact net zero and sustainability goals. In turn, chefs receive authenticated products, so they can be sure of the origin of their produce, as well as its sustainability impact. 
Reportedly, chefs can order produce through the 2h marketplace, selecting items based on region, producer or type of product. Products are tagged by producers and packed for restaurant orders, and the data is then sent to 2h to be uploaded to the blockchain. 2h organises pickups, processing, cross-docking and deliveries with partners directly to restaurants.  
At each change of custody, the company asserts that the data is updated on the blockchain. Upon arrival at a restaurant, chefs and consumers can scan the smart tag to view the sacred story of the producer, the beauty of their region and sustainability and product information. They can also verify the journey of the product via the 2h blockchain dashboard. Chefs can then assess the quality of producers. Based on this, chefs can enter into agreements for future purchases. This is currently not possible with wholesalers, the company claims. 
According to the company, 2h facilitates invoice and supply-chain financing based on end-buyer orders. Consequently, all intermediaries between the farmer and the end-buyer are turned into a service provider, providing the service required by 2h. From its work across the industry, 2h reports the platform knows: the market farmgate price, the restaurant buying price and all supply chain costs. The company also states that the platform analyses market prices and pays better prices to its producers and end-buyers. 2h reports that when joining the platform, end-buyers complete KYC in minutes, with an approved finance limit, allowing them to place orders without needing to reapply for invoice financing for every transaction.  
By changing supply chain participants to service providers, 2h claims to save over 20% in supply chain costs. These savings come from two sources: 1) since no intermediary buys inventory, their risks and costs are reduced, and (2) by removing unnecessary middlemen. 2h asserts, this allows the company to pay farmers and fishers above market price. Chefs are offered competitive or lower prices for a value-added product. Reportedly, 2h charges up to a 14% transaction fee per sale. At present, the company reports they increase profits, solve significant pain points and address net zero all at no cost to the platform’s producers and end-buyers.

Greg McLardie

greg

Greg

Gale McLardie

gale

Gale

Two Hands co-founder, Greg has over 30 years of global experience including roles at EY, eight years with Procter and Gamble in their Cincinnati global headquarters and President of Japan and South Korea for Australia’s largest food company. He began his career as a chartered accountant before moving into finance, marketing and general management. 
As co-founder, COO and head of marketing, Gale has more than 30 years of global experience in marketing and general management in the food and beverage industry. She has worked with advertising, consulting and manufacturing companies in the US, Japan, Australia, New Zealand and China. Gale has held marketing director and senior management roles at Tata Global Beverages, Dairy Australia, Ocean Spray Cranberries and eight years with Procter and Gamble in their Cincinnati global headquarters. She started her career in marketing before expanding into sales and general management.

The founders' story

<h2>What’s next for Two Hands </h2>
The company reports that the 2h platform has been operating in Australia and China for five years, and now aims to expand into the UK, beginning in Scotland with plans to assist producers with their Brexit and net zero challenges.  
In its net zero initiative, the company reports it is collaborating with US and UK tech firms, as well as the Scottish Rural College (SRUC) to organise and pay for the blockchain authentication of measuring, verification and recording (MVR) of each farm’s carbon inventory, GHGe, biodiversity, water, air and soil quality, pollinators and farmer well-being. According to the company, all MVR will adhere to international protocols, providing a baseline for SRUC to provide regenerative farming plans aimed at helping farmers maximise their carbon sequestration and minimise their GHGe. The company’s modelling suggests the cost of MVR is less than five pence per kilo, compared to the average invoice price for beef from a steer at £12 per kilo.     
According to the company, where carbon markets have been exposed to significant greenwashing, the world has not yet seen this very high level of blockchain authenticated carbon inventory, GHGe and sustainability measures back to source scientific data. 
Importantly, the 2h platform’s blockchain authentication of the entire supply chain enables authenticated ESG regulatory reporting to end-buyers and consumers at scale, aggregated at institutional level. Now, the company claims, institutions will have the highest quality measures of carbon footprint and United Nations Sustainability Goals against their aspirational goals. The company’s modelling suggests 90% of the carbon and biodiversity market income streams will be paid to the farmer with less than 10% for 2hs’ margin and MVR costs.  
The company has chosen to use Floww’s innovative infrastructure to facilitate its funding efforts and help it achieve its future goals.  
*Floww Markets Limited is a company authorised and regulated by the Financial Conduct Authority (FCA). Firm reference number 980098. 
 The information and imagery contained within this article does not represent the opinions of Floww. Floww does not have a view on opinions provided by Two Hands in this article and elsewhere where they may be expressed, and is not responsible or liable for the information within this article.

Sources:
<ol>
<li><a href="https://sparkfood.com/press/food-industry-challenges/">https://sparkfood.com/press/food-industry-challenges/</a>   </li>
<li><a href="https://www.transparency.org/en/our-priorities/sustainable-development-goals">https://www.transparency.org/en/our-priorities/sustainable-development-goals</a>   </li>
<li><a href="https://www.researchgate.net/publication/240235787_Power_Imbalance_in_UK_Agri-Food_Supply_Channels_Learning_to_Live_with_the_Supermarkets">https://www.researchgate.net/publication/240235787_Power_Imbalance_in_UK_Agri-Food_Supply_Channels_Learning_to_Live_with_the_Supermarkets</a>  </li>
<li><a href="https://www.port.ac.uk/news-events-and-blogs/news/farmers-left-with-less-than-1p-of-food-profits-for-their-produce-reveals-new-report">https://www.port.ac.uk/news-events-and-blogs/news/farmers-left-with-less-than-1p-of-food-profits-for-their-produce-reveals-new-report</a>  </li>
<li><a href="https://www.researchgate.net/publication/272455784_Implications_of_middlemen_in_the_supply_chain_of_agricultural_products">https://www.researchgate.net/publication/272455784_Implications_of_middlemen_in_the_supply_chain_of_agricultural_products</a>   </li>
<li><a href="https://fsns.com/what-is-food-fraud/?ref=hir.harvard.edu">https://fsns.com/what-is-food-fraud/?ref=hir.harvard.edu</a>  </li>
<li><a href="https://www.fwi.co.uk/news/exclusive-mass-food-fraud-and-safety-scandal-engulfs-sector">https://www.fwi.co.uk/news/exclusive-mass-food-fraud-and-safety-scandal-engulfs-sector</a> </li>
<li><a href="https://hir.harvard.edu/uncovering-the-secrets-of-the-global-food-industry/">https://hir.harvard.edu/uncovering-the-secrets-of-the-global-food-industry/</a>  </li>
<li><a href="https://www.un.org/en/observances/end-food-waste-day">https://www.un.org/en/observances/end-food-waste-day</a> </li>
<li><a href="https://openknowledge.fao.org/server/api/core/bitstreams/57f76ed9-6f19-4872-98b4-6e1c3e796213/content">https://openknowledge.fao.org/server/api/core/bitstreams/57f76ed9-6f19-4872-98b4-6e1c3e796213/content</a> </li>
<li><a href="https://openknowledge.fao.org/server/api/core/bitstreams/11f9288f-dc78-4171-8d02-92235b8d7dc7/content">https://openknowledge.fao.org/server/api/core/bitstreams/11f9288f-dc78-4171-8d02-92235b8d7dc7/content </a></li>
<li><a href="https://www.bbc.com/news/uk-politics-60917719">https://www.bbc.com/news/uk-politics-60917719</a> </li>
<li><a href="https://www.ft.com/content/7d522ad8-abb4-11e9-8030-530adfa879c2">https://www.ft.com/content/7d522ad8-abb4-11e9-8030-530adfa879c2</a> </li>
<li><a href="https://www.nytimes.com/2023/01/23/world/europe/brexit-eu-farmers-labor.html">https://www.nytimes.com/2023/01/23/world/europe/brexit-eu-farmers-labor.html</a> </li>
<li><a href="https://www.theguardian.com/global-development-professionals-network/2014/feb/04/global-food-security-old-age-timebomb">https://www.theguardian.com/global-development-professionals-network/2014/feb/04/global-food-security-old-age-timebomb</a> </li>
<li><a href="https://www.bbc.com/news/newsbeat-57172065">https://www.bbc.com/news/newsbeat-57172065</a> </li>
<li><a href="https://www.gov.uk/government/publications/farming-evidence-pack-a-high-level-overview-of-the-uk-agricultural-industry/farming-evidence-key-statistics-accessible-version">https://www.gov.uk/government/publications/farming-evidence-pack-a-high-level-overview-of-the-uk-agricultural-industry/farming-evidence-key-statistics-accessible-version</a> </li>
<li><a href="https://news-archive.exeter.ac.uk/homepage/title_863235_en.html">https://news-archive.exeter.ac.uk/homepage/title_863235_en.html</a> </li>
<li><a href="https://agrifoodecon.springeropen.com/articles/10.1186/s40100-023-00244-z#Fn5">https://agrifoodecon.springeropen.com/articles/10.1186/s40100-023-00244-z#Fn5 </a></li>
<li><a href="https://www.farminguk.com/news/uk-farming-faces-talent-drought-as-young-people-steer-away_60668.html">https://www.farminguk.com/news/uk-farming-faces-talent-drought-as-young-people-steer-away_60668.html</a> </li>
<li><a href="https://www.bbc.com/news/uk-57826560">https://www.bbc.com/news/uk-57826560 </a></li>
<li><a href="https://vlsci.com/blog/top-issues-in-agriculture-2024/">https://vlsci.com/blog/top-issues-in-agriculture-2024/</a> </li>
</ol>

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In recent weeks unregulated platforms have come under severe scrutiny from the UK regulator which has caused great concern for the private market investment space. From day one, Floww has been building regulated rails for this market to ensure both companies and investors have the appropriate protection and support. At a time where investor confidence in this space is eroding, we believe it is very important to highlight that appropriately regulated and safe solutions do exist in this market. Floww’s mission is to create a professionalised infrastructure that strives to raise industry standards and better reflect regulatory compliance and investor protections.
Private markets have grown to a total of $13trn but still lack infrastructure, with transactions still taking place on email and pdf predominantly. As the industry professionalises, we envisage a future with more intuitive infrastructure akin to investing in listed securities. But we also believe that private markets are private. In light of recent commentary that no party holds the necessary license to facilitate certain types of investments into private companies, we want to reiterate our vision.

It is our mission to create a professionalised infrastructure that strives to raise industry standards and better reflect regulatory compliance and investor protections.  

Our journey has led us to building a patented data solution, a network infrastructure built on state-of-the-art tech stack with the latest AI integrations – securing data privacy, and ease of use technology where compliance is a seamless part of every client journey.
The road to building regulatory compliant technology is materially more complex. However, in a market where historically investors have felt less protected and safe, it was important for us to take this longer and more difficult road. Backed by the London Stock Exchange and working in collaboration with Latham &amp; Watkins and Kroll, we successfully sought the necessary and relevant permissions, which included going through a thorough assessment as part of the FCA authorisation process, to facilitate private company capital raising and investments.
Yes, it is the case that very few firms in the UK have the necessary permissions to conduct this activity – and we cannot comment on how others are managing their activities without the necessary approvals. At Floww, we have a suite of regulated solutions that allow us to serve companies and investors, starting with the UK market and soon to launch in the US (FINRA application in progress). We provide services to eligible counterparties, professional investors and retail investors that meet eligibility criteria in order to view our regulated financial promotions for our issuer companies.  We also hold the relevant client money permission to be able to offer custody services through our regulated Jersey solution.
Regulation is often deemed a necessary evil, but regulated rails are the foundations of our vision as they ultimately instil confidence of those providing capital and those seeking capital. If allocation to this asset class from institutional and non-institutional investors is to increase, we have to build trust – and that only comes from the right level of transparency and appropriate industry and investor safeguards through regulatory checks. But we need to balance this with the control and privacy required by private markets. It is this balance that continues to shape Floww’s activity and strategy into the future.

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Floww is excited to partner with Kemeny Capital to mutually benefit our scaleups and experienced investors.
As Floww works with companies seeking capital, collaborations such as this with Kemeny Capital will help maximise their chances of raising successfully. For Kemeny’s experienced investors, our partnership will provide curated deal flow, in-depth company performance data, and portfolio management tools in one simple platform.
Kemeny Capital was established in 2020 to better serve UK investors with the information and means to discover and access tax-efficient investments.
At Floww, we are making the vision of greater visibility and transparency in private markets a reality and are excited about the potential of this new partnership to improve outcomes for companies, investors and the broader funding landscape for growing UK companies.
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