Tag Archives: HVAC

MedicineManTechGrow

Legal Cannabis Industry’s Energy Bill Not So Alarming

By Aaron G. Biros
1 Comment
MedicineManTechGrow

New Frontier, a financial data analysis firm, recently released a report that caused a media frenzy over the cannabis industry’s alarmingly high energy bill. The Washington Post published an article with the headline “The Surprisingly Huge Energy Footprint of the Booming Marijuana Industry.” Denver news publication, Westword, posted an article with the headline “Legal Marijuana Used Over $6 Billion in Energy Last Year, Report Says.” There are dozens of articles published suggesting the legal cannabis industry’s energy consumption has a $6 billion price tag, which is misleading.

What’s the problem? The $6 billion figure that New Frontier cites comes from a 2012 research study that estimates the energy footprint for legal and illicit markets. That means the $6 billion estimate includes the legal cannabis industry and the black market’s energy footprint. To put it in perspective, the size of the entire legal cannabis industry in the United States was less than that in 2014 at $4.6 billion, according to the ArcView Group.

newfrontierreport
The projected energy demand for growing in the Northwest through 2035, from the New Frontier report.

According to Giadha Aguirre DeCarcer, founder and chief executive officer of New Frontier, only including the legal market would significantly reduce the size of this estimate. “Dr. Mills’ study looked to assess the total energy use associated with marijuana in the US, not just that of the nascent legal marijuana industry; including this holistic view is an important growth determinant for the legal market as the U.S. transitions from a predominantly illicit production environment,” says Decarcer.

Dr. Evan Mills, energy analyst at the Department of Energy and member of the UN Intergovernmental Panel on Climate Change, conducted the 2012 research study and is a senior advisor on the New Frontier report.

Brett Roper, founder and chief operating officer at Medicine Man Technologies, believes those numbers still need to be adjusted. “Dr. Mills’ study is based on pre-2011 data and sources that date back as far as 2003,” says Roper. “The study provides figures that are, quite frankly, outdated based upon changes in the industry related to cultivation and production efficiency.” The study focuses on cultivation increments of sixteen square feet consuming 13,000 KW per year that, according to Roper, is not reflective of current indoor cultivation technology and energy consumption metrics.

medmantech
A back-end view of Medicine Man Technologies’ indoor production facility

According to Roper, today’s efficiencies, scalable cultivation operations and new technology could explain the overestimate from five years ago. “We are a Tier III operator that produced approximately 5,100 (+/-) pounds of dried cured flower in 2015 and have a total power bill of approximately $420,000 for the year,” he says. Note that the company had roughly $18 million in revenue in 2015. “Using this metric we have a total energy billing of approximately $83 per pound grown.” According to Roper, they cultivate completely indoors with HPS lights that are not particularly energy-efficient, so this estimate is relatively conservative.

MedicineManTechGrow
Medicine Man Technologies’ approximately 40,000 sq. ft. cultivation facility.

Dr. Mills’ research cites much higher numbers for the cost of energy per pound of finished product than Roper’s findings. “From the perspective of a producer, the national-average annual energy costs are approximately $5500 per module or $2500 per kilogram [roughly 2.2 pounds] of finished product,” says Dr. Mills. That would suggest the average cost of energy for indoor growing to be above $1,000 per pound, roughly half the current average wholesale price. These numbers would mean that cannabis growers, on average, lose roughly 50% of their total revenue to their energy bill. Medicine Man Technologies’ energy usage is less than 3% of their total revenue.

coloradoenergydemand
Xcel, a Colorado utility, showing the rise in electricity demand for cultivation.

The New Frontier report does provide caveats on the use of Dr. Mills’ research. “While this analysis was conducted before many of the recent advancements in cultivation technologies, it highlights the significant energy-related environmental impact of marijuana production, and makes the issue of energy efficiency not just one of competitive advantage but also one of environmental sustainability.”

New Frontier’s CEO, DeCarcer, stresses that their report is intended to serve as a starting point to a much broader exploration of energy use in cannabis. “We are already in the process of establishing a partnership through which New Frontier will ingest real time energy-use data from cultivators across different legal markets for analysis in our next report,” says DeCarcer. “Our goal is to build on the work done by Dr. Mills and others in order to ensure that we are providing the most accurate representation of where the industry currently is, and where it is headed.”

Regardless of the discrepancies, this kind of discourse is great for prompting innovation and getting people to think about the environment. It is very important to examine the energy footprint of cannabis cultivation as it raises questions regarding energy efficiency, which would help the industry’s long-term environmental sustainability.

soslticefarms_feb
Biros' Blog

Sustainability of Cultivation in 2016, Part II

By Aaron G. Biros
No Comments
soslticefarms_feb

In the second part of this series, I speak with Alex Cooley, vice president of Solstice, to find out what particular solutions growers can use to increase efficiency. Last month, I introduced the challenge of growing cannabis more sustainably. To recap, I raised the issue of sustainability as an economic, social and environmental problem and referenced recent pesticide issues in Colorado and carbon footprint estimates of growing cannabis.

soslticefarms_feb
The growers at Solstice put their plants under a trellis net to increase yield.

Alex Cooley is the vice president of Solstice, a cultivation and processing business based in Washington. Solstice is at the forefront of the industry for innovating in energy, water and raw materials efficiency. I sat down with Cooley to discuss exactly what you can do to grow cannabis sustainably.

“Switching to outdoors or greenhouse will always be more sustainable than indoor, but depending on the type of facility, energy efficiency and specifically lighting should be at top of mind,” says Cooley. “Just looking at your bottom line, it is cheaper to use energy efficient lighting sources such as plasma or LED lighting, which will reduce your need for air conditioning and your overall energy consumption.”

Looking into sustainable technologies is one of the quicker ways to improve your overall efficiency. “We are big believers in VRF [variable refrigerant flow] HVAC systems because it is one of the most energy efficient ways to cool a large space in the world,” adds Cooley. “Use a smart water filtration system that gets away from wasting water by catching condensate off AC and dehumidifiers, filtering and then reusing that water.”

solsticegrowop_feb
Indoor cultivator facilities use high powered lights that give off heat, requiring an efficient air cooling system like VRF HVAC.

Utilizing your waste streams is another relatively simple and cost effective practice to grow cannabis sustainably. “Our soil and biomass goes through a composting company, we recapture any of our waste fertilizer and runoff for reuse,” says Cooley. “We try to use post-consumer or fully recyclable packaging to reduce what would go into the waste streams.”

So some of the low hanging fruit to improve your bottom line and overall sustainability, according to Alex Cooley, include things like reusing materials, composting, increasing energy efficiency and saving water. These are some of the easily implementable standard operating procedures that directly address inefficiency in your operation.

soslticefarms_feb
The tops of plants are beginning to flower in this Solstice indoor facility.

In the next part of this series, I will discuss Terra Tech’s approach to sustainable cultivation, which utilizes the “Dutch hydroponic greenhouse model” on a large scale growing produce such as thyme and basil, but are now taking their technologies and expertise to the cannabis industry. I will also discuss the benefits of using a third party certification, Clean Green Certified, to not only help grow cannabis more ecofriendly, but also market your final product as such. Stay tuned for more in Sustainability of Cultivation in 2016, Part III.

Aaron_headshot
Biros' Blog

Sustainability of Cultivation in 2016, Part I

By Aaron G. Biros
4 Comments
Aaron_headshot

A few weeks ago, it was that time of the year when people set new year’s resolutions hoping to accomplish a set of goals or somehow better themselves. More often than not, those expectations never get met and those resolutions remain unfulfilled, lofty ambitions.

The cultivation of cannabis is a production process that is notoriously inefficient and energy-intensive. Indoor growing requires a very large carbon footprint. In 2015, we saw the country’s cannabis market grow to roughly $2.7 billion. Looking forward to 2016, we can expect more growth with multiple states voting on recreational sales including California and Nevada, leading to more growers and a higher volume of cannabis production across the nation.

I am suggesting a resolution for cultivators to adopt: Grow your cannabis more sustainably. This might seem unattainable, but the key to a good resolution is a force of habit, setting small goals to improve your production process and make your operation more efficient, ultimately saving you money and reducing your carbon footprint. This series will delve into some of the tools cultivators can use to grow cannabis more sustainably.

Environmental, social and economic sustainability are the three pillars of sustainability to keep in mind. Many describe it in terms of people, planet and profit in reference to the Triple Bottom Line of 21st Century Business. Essentially, cultivators should adjust their standard operating procedures and business model to include their responsibility to be environmentally, socially and economically sustainable.

The challenge of growing cannabis efficiently is understandably daunting. A research study published in the journal, Energy Policy, suggests, “One average kilogram of final product [dried flower marijuana] is associated with 4600 kg of carbon dioxide emissions to the atmosphere.” That translates to an enormous carbon footprint, the equivalent of roughly three million cars.

The use of pesticides is also a tangible social and environmental issue of sustainability because of the potentially harmful effects on the cultivation environment and the consumer. Just last week, Denver recalled almost 100,000 edibles due to concerns of dangerous pesticide residue. Growing pesticide-free marijuana is more sustainable across the board for obvious reasons; it is safe for the consumer, less harmful to the environment and more marketable as a clean and safe product.

There are a lot of tools in the cultivator’s arsenal they can use to work toward a more sustainable operation. Some of these include more energy efficient technology, like LED lighting and efficient HVAC systems. Some tools require more effort to implement like moving toward greenhouse growing, using post-consumer products, support fields, composting and others.

In this series, we will hear from growers offering advice on some of the steps you can take to grow your cannabis with sustainability at top of mind. Alex Cooley, vice president of Solstice, a cultivation and processing business in Washington, will share some insights on the sustainable technologies you can implement to improve efficiency in your grow operation. Stay tuned for Part II of Sustainability of Cultivation in 2016.