Smart Cities Symposium Prague 2022

Vertical farms and smart cities – identification

of common research areas, Tungsram’s
experience and vision in Central Europe
György ÁGOSTON, College Professor, University of Dunaújváros, Ferenc PONGRÁCZ, Chief
Innovation Officer, Tungsram, Klaudia Gabriella HORVÁTH, Ph.D. student, University of Public
2022 Smart City Symposium Prague (SCSP) | 978-1-6654-7923-3/22/$31.00 ©2022 IEEE | DOI: 10.1109/SCSP54748.2022.9792542

Service, and Zsolt BUKODI, IT Development and Continuous Improvement Manager, Tungsram

composition, and thus to sustainable food consumption.

Abstract—The scientific research of controlled-environment
agriculture (CEA) began primarily with the examinations of
indoor agricultural technology and vertical farming, including
technical and IT aspects, as well as food security questions. In
this paper, we analyze the impact of vertical farming on smart
cities and identify new areas for research based on the empirical
experiences gained in the R&D vertical farm of Tungsram in
Budapest.
Following the development of the LED Grow Light product
line, a new 150 square meter R&D hydroponic vertical farm
was built at Tungsram's Budapest site with significant state
support in 2021 (Fig. 1). Among others, this technology
ensures 95% less water consumption, orders of magnitude
more predictable yield, pest- and pesticide-free crops
compared to traditional field crop cultivation.

Index Terms—logistics, resiliency, smart city, sustainability,

vertical farm

I. INTRODUCTION

T UNGSRAM, a Budapest-based company with a 126-year

history, has been turning its attention to sustainable
development since the year of its re-establishment in 2018. It
is well known that the overexploitation of our Earth's
resources together with the growing population causes long-
term problems (air and water pollution, harmful consequences
of fertilizer use, etc.), some signs of which are already visible:
global climate change, limited access to drinking water,
migration, pollution-related diseases, excess deaths, and yield
decline. The reduction of arable land and high water use in
agriculture are particularly problematic [1]. Fig. 1. Vertical farm at Tungsram’s Budapest HQ. Source: Tungsram
In support of sustainable development, Tungsram has begun
At the same time, Tungsram established a think tank, which
to develop a new business unit. The steps were as follows:
collects and analyzes practical experiences of sustainable
In 2019, Tungsram, utilizing its more than 100 years of
development and conducts scientific research.
manufacturing experience in lighting technology, developed a
Since vertical farms are often built in cities, it is well-
new Horticultural LED Grow Light product line which can be
grounded from scientific and practical point of view to
used in modern greenhouses as well as in research and vertical
connect this topic with the current challenges of smart cities
farming. The use of modern LED Grow Lights in indoor
and sustainable development [2] [3].
agriculture provides the opportunity of large-scale production
In the following, we outline the practical experience of the
of outstandingly healthy plants with nutrient-rich biological
first year of operation and we also highlight those questions
and further research directions which are already visible in the
This article was submitted for review on February 20, 2022. market, but further scientific analysis is required. As
György Ágoston is with the University of Dunaújváros, Dunaújváros, H- Tungsram has experience primarily with the hydroponics
2400 Hungary (email: agoston@uniduna.hu). system and partly with aeroponics, we analyze the first type.
Ferenc Pongrácz is with Tungsram Operations Kft., Budapest, H-1044
Hungary (email: Ferenc.Pongracz@tungsram.com).
Klaudia Gabriella Horváth is with the University of Public Service, II. PREVIOUS SCIENTIFIC AND MARKET ACTIVITIES
Budapest, H-1083 Hungary (e-mail: horvath.klaudia.gabriella@uni-nke.hu).
Zsolt Bukodi is with Tungsram Operations Kft., Budapest, H-1044 Analyzing the previous scientific results and market
Hungary (email: Zsolt.Bukodi@tungsram.com).

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 developments, we found the following results [4] [5]:
1) Past research directions
The vertical farm is technically feasible, as has been
demonstrated in many places under market conditions in
recent years [6]. The quality of the food produced for
human consumption (food security and nutrition biology)
has been checked and concluded with reassuring results.
Thus, the scientific foundations are mostly coherent and
quite explicit.
2) Future research directions
Most of the research so far has been on the areas of
technology (engineering), agriculture and food security,
due to the advancement of a relatively new technology,
e.g. the use of special LEDs [7]. Many further research
directions are possible in this field: the use of new plants
for human consumption as industrial raw material or as
animal feed, etc. So far, less attention has been paid to
analyzing other areas, therefore it is beneficial to extend
the scope of research related to vertical farming. A good
example is the emerging research area of vertical farms
and its impacts on the quality of life in cities [8].
III. RESULTS
The think tank formed by Tungsram in 2020 identified the
following smart city related areas to conduct research:
A. Transport and logistics aspects
The logistical fit of the vertical farm has already been
investigated in scientific publications [9]. In a specific city, it
is advisable to optimize the location of vertical farms based on
logistics aspects (how farm locations affect transportation
needs). Even building several smaller farms should be
considered. The goal is to optimize input and output in a
specific city. It is possible to determine the characteristics and
impacts of vertical farm generated traffic between farms and
consumers. Since the location and capacity of the vertical farm
have significant impact on the transport of goods, a transport
demand model could be elaborated to optimize the location
and characteristics of vertical farms in urban areas. A
sensitivity analysis could also be performed. The main result
could be a vertical farm model that supports reducing the
transport related externalities and production costs in urban
areas.
B. Resilience
COVID-19 pandemic has also drawn attention to the
weaknesses of EU’s resilience capabilities, including
disrupting food supply systems and industry value chains or
the lagging European IT sector [10]. The EU is openly
committed to strengthen its independence from external
factors in these relevant areas, however closer co-operation
between member states along common interests may further
widens the opportunities for a resilient and sustainable
European future [11]. Other events of recent years have also
proved that cities are much more vulnerable than we thought.
The installation of vertical farms in cities may also be planned
and investigated in such a way that in the event of any
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unforeseen accident or emergency situation when the city and
its population is isolated from the outside world, the installed
vertical farms will be able to supply the city with food. The
long-term goal is to reduce food import dependence.
The war that erupted in Ukraine in February 2022 poses
new challenges for countries and its decision-makers, as
significant changes in agricultural supply chains and freight
transport are going to impact our everyday life, already in the
short term. Due to the suddenness of the war, well-grounded
results regarding this topic have not yet been published
widely. However, based on Tungsram’s market experience,
vertical farming is a well applicable technology to bring
agricultural production closer to local communities and
therefore ensure the security of food supply. For example, in a
vertical farm it is possible to grow previously imported crops,
such as herbs. The cultivation of mustard and potatoes also
arose.
C. Environmental aspects and maximizing synergies from a
city perspective
When setting up vertical farms, it is also necessary to plan
the aspects of the city, e.g. if the farm also performs a
wastewater treatment function. Plants have long been used to
treat wastewater. Proper integration into vertical farm
technology can create additional opportunities. It is also
necessary to examine and adapt energy management.
Representation of a vertical farm with models can contribute
to the potential of reducing the total annualized cost of the
entire system [12].
D. Vertical farm lite
Scientific papers, our industrial partners and our own
experience also have showed that building and operating a
vertical farm is very costly. Particularly due to its high
electricity and gas requirements. The cost of production is
adversely affected by rising energy prices, intensified after the
outbreak of the war. Therefore, the cultivated plants are
generally in the premium category as for its prices.
Given the above mentioned problem, how to develop
special vertical farming solutions suitable for urban slums or
low income urban areas is a key question of the CEA market
currently. Reducing the capital expenditures and the
operational costs of vertical farms are generally major
challenges, but it is especially important in areas where more
affordable and practical solutions are needed. Hopefully, the
technological development in the near future will allow the
market players to reach this consumer segments as well.
E. Theological, sociological, and social fit
Prior to establishment in some third countries, it is
advisable to analyze the regional regulations and other socio-
cultural and environmental characteristics of the area. For
example, if the vertical farm may be established in a biological
ecosystem of which animals are also part.
It is simply a matter of taking into account, in the case of
 technological exports, whether there is any prohibition in the
target area on the use of certain plants or animals that the
technology requires. These prohibitions may stem from social
traditions, religions, even local laws, or health considerations.
If this is the case, the plans may need to be modified.
F. Economic competitiveness of the CEE region
Agriculture contributed 1.3% to the EU’s GDP in 2020 of
which 32% was produced in Central Europe and this rate is
steadily rising for years [13]. There is a regional diversity of
factor endowments in the agriculture of the EU, which implies
differences in the technical efficiency of agricultural farms
[14]. Analyzing total factor productivity, we may conclude
that the increase in agricultural productivity in the EU-13 was
mainly caused by technical progress and a rise in production
efficiency, whereas in the EU-15 improvement in agricultural
productivity was based almost entirely on improved efficiency
[15]. Nevertheless, if Central European countries aim to
further strengthen their competitive position in the primary
sector, they must shift the emphasis to research, innovation,
and international co-operation instead of cost and price
advantages. This may be stimulated by incentivizing the
concentration of the agrarian structure and promoting policies
and co-operations focusing on technical change and
innovation [14] [16].
connect market players on the field of agricultural innovation
[20].
Since primary sector is of great importance in Central
Europe and there is still room for productivity growth, but
innovation is a capital-intensive process, cross-border co-
operation could be the fundamental of the competitive
advantage of the Central European agricultural sector. Given
that political and professional commitment is clear, financial
instruments are within reach, it is time to pay attention to
Central European enterprises that may be able to bring
agricultural values and innovative mindset together.
G. IT safety and security attacks, especially in cities
A vertical farm is a complex system and has several IT
devices (Fig. 2). The industrial control system and the IT and
IIoT (Industrial Internet of Things) solutions provide the
possibility of full control of the farm environment and
production. The aim of the control system is to provide direct
feedback about the output (production quality and quantity) to
the actuators to reduce the deviations from the desired
characteristic of the production.
Therefore, the chance of IT safety and security attacks
arises. We identified the following vulnerabilities (in addition
to the usual ones):
FARM 8

5
The Central-Eastern European Initiative for Knowledge- 1
VERTICAL FARM DALI
(Digital Addressable Lighting Interface)
PowerGrow Edge Device
4
9

DALI Driver
(Micro PC)

Gateway
based Agriculture, Aquaculture and Forestry in the Light
Control
LED Driver Max
4 x 64
DALI
Server
Light sensor
Bioeconomy (BIOEAST) offers a common political
UI
SQLite 3
DataBase

commitment and shared strategic research and innovation 7

Data & Configuration

(Save & Recovery)

framework for working towards sustainable bioeconomies in Industrial (OMRON)

2
TCP
UPS
Internet
4G & Wi-Fi

the Central and Eastern European countries [17]. The initiative Environment
Measurment & Control
Farm Control PLC
SENSOR Service TCP
Switch Router
Internet

was launched in 2016 during the Polish presidency of the ACTUATOR Service
Local
6

Remote Access
Visegrad Cooperation [18]. The fundamental reason of Standard Features
• Environment control
• Lighting control
RS485
TCP
Access
(PowerGrow)
Remote
Control (PLC)
• Irrigation system

BIOEAST was the low performance and visibility of Special Features

• Control by recipes
Industrial Climate
Control PLC
3

• Cloud data storage

knowledge-based agriculture and forestry in the bioeconomy • Remote access SENSOR Service
UI (User Interface)
Remote. VNC
IT

in Central European countries in the 2010s. The ultimate ACTUATOR Service 2020-10-20 Bukodi Zs.

mission of BIOEAST is to develop knowledge and
cooperation based circular bioeconomies, which helps to
enhance inclusive growth and to create new value-added jobs
especially in rural areas, maintaining or even strengthening
environmental sustainability [17].
During the 2014–2020 Multiannual Financial Framework
EU-13 countries accounted for less than 5% of the total budget
spent under the European research framework program, better
known as Horizon 2020, which is the EU’s main financial
instrument to support innovation. The budget of Horizon
Europe 2021–2027 is 95.5 billion EUR and one of the
promoted innovative clusters is ”Food, Bioeconomy, Natural
Resources, Agriculture and Environment”. Key research areas
include agricultural knowledge and innovation systems,
agroecology, organic farming, plant and animal health, feed
and food safety prevention and reduction of food losses and
waste, and urban food systems transformation [19]. The
members of BIOEAST pursuit to make better use of the
opportunities of Horizon Europe, therefore the current
Hungarian presidency of the Visegrad Cooperation aims to
Fig. 2. IT background of the vertical farm at Tungsram. Source: authors
1) Remote access
The remote access technology allows the growers to check
and modify the system conditions, but naturally in this
case the IT security risk is higher compared to the
traditional solution with local and separated network
environment.
2) Protection of devices
The control ecosystem contains dozens of IoT devices, but
if only one device is compromised, the whole system can
be in danger, thus every component must be protected.
3) Communication channel attacks
The attacks originate from communication channels
applied to communicate with other devices. If the hackers
can access to the channel, they can perform overloading
attacks and block the operation of the system.
4) Applications
The applications used by the growers must meet
conflicting expectations. The users want easy and quick

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 access, meanwhile the security require multi-level
authentication and define restrictions about the usage
conditions.
5) Low-level attack
There may be a risk of certain low-level communication
device attacks (for example when we insert a USB drive)
because this question was not taken into consideration
when these communication protocols were created.
6) Cities
In cities, radio frequency interference, power outage,
uncontrollable passers-by on the streets next to the farm,
heavy vehicle traffic, vibrations, various foreign cables
nearby also may increase IT problems.
Our goal is to scientifically investigate the possibilities of
attacking the IT systems of vertical farms.
IV. FUTURE PLANS
As next step, the top management’s plan at Tungsram is to
place the current stand-alone unit in a complete ecosystem
called Food HUB, which basically indicate the coexistence
and optimal interaction of other living beings (algae, insects)
in addition to traditional plants (Fig. 3). This development is
currently in the planning and in the raising capital phase. If
implemented, the above research directions could be examined
in this ecosystem as well, and new research directions may be
outlined.
Fig. 3. Food HUB (Life Centric Light) concept. Source: Tungsram
In 2019, a consortium of 37 experts, including ecologists
and nutritionist, from 16 countries – the EAT-Lancet
Commission on Food, Planet, Health – introduced a broad
dietary change that takes into account both nutrition and the
environment. The proposed flexitarian diet is primarily plant
based, augmented with animal protein. The Food HUB will be
a pioneer in complex urban food production. The facility will
demonstrate proof of concept. The expanded Budapest R&D
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Center can test new technologies and practices to continuously
provide the latest in innovative products and solutions for the
Food HUB. The main building is capable of covering
approximately 75% of the Lancet Diet for approximately 2000
people.
V. CONCLUSIONS
Established in 2018, Tungsram’s Agritech business unit
development steps have been preceded by several market
research and forecasts. The newly created Agritech lamp
family have been successful in the market. Operating
experience to date has confirmed that it was worthwhile to
enter into this market. Plant experiments continue on the farm,
as we also have strong partnership with several universities,
research institutes and industrial partners, but business results
are only coming slowly.
The farm is open to research collaborations. Scientific
research, in which the think tank in Tungsram intends to
contribute, is also essential. In addition to cultivation
technology and horticulture, we propose new research
directions as described in this paper, all are relevant smart city
related topics.
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