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Adapting to New Economic Realities | 8.1.23 | Service Solutions

NCIA’s Service Solutions series is our sponsored content webinar program which allows business owners the opportunity to learn more about premier products, services and industry solutions directly from our network of established suppliers, providers and thought leaders.

In this edition originally aired on Tuesday, August 1, 2023 we were joined by Jason Laronde of Vitalis Extraction Technology and special guest Mark Webb (passionate chemist, educator, and extraction specialist better known as The Aroma Science Guy and ) for a session about one of today’s most impactful, yet often misunderstood, solutions for rising production costs: cosolvent extraction using CO₂ and small, metered volumes of ethanol.

Making cannabis products is basically like printing money, right? Well… Maybe in the past. Today, cannabis is bound by the fundamentals of business. The old ways of processing are often too expensive amid rising competition and price compression. In this more mature market, every penny matters. So with extraction and downstream refinement being among the highest operating costs producers face, it’s vital to get things right.

Learn how this novel application of a time-tested process can streamline your operation, improve your profitability, and help you maintain the consistent product quality your customers expect.

Learning Objectives:

• Summarize the economic evolution of the legal cannabis manufacturing industry and the resulting impacts on today’s producers.
• Explain the drawbacks of different solvent extraction methodologies as they relate to a cannabis manufacturer’s operation and bottom line.
• Describe the advantages of using CO₂ extraction with small amounts of ethanol as a cosolvent in cannabis manufacturing.

Panelists:

Jason Laronde
Sales Manager
Vitalis Extraction Technology Inc.

Mark Webb
AromaScienceGuy

Want to Learn More: https://www.vitaliset.com/

Committee Blog: Everything You Wanted to Know About Cannabis Facilities But Were Afraid to Ask Field Guide – Part 2 – Extraction Facilities

by members of NCIA’s Facilities Design Committee
Jacques Santucci, Brian Anderson, David Vaillencourt, and David Dixon

Continuing our five-part series on the behind-the-scenes workings of the legal cannabis industry. This series focuses on all of the inner dealings and industry advice from established professionals to craft this unlimited How-to-Guide to assist you in setting up your own facility. These articles cover cultivation, extraction, infused products, and retail facilities as well as support activities. In general, remember to be compliant with all local rules and regulations and contact a licensed contractor and industry expert. 

Part Two, Extraction: Top Things to Consider When Planning Your Cannabis Extraction Operation

The extraction environment is akin to an industrial process and should be approached away from a safety and chemical handling standpoint. Here are some general considerations as you begin to plan your extraction operation that we often see assumed or overlooked resulting in major unanticipated barriers that significantly impact decision costs and timelines. Always remember to be compliant with all local rules and regulations. 

Interior Building Materials

The walls and floors should be designed to be easily cleanable. In areas with solvent use, should have floors and walls made with the material, and ultimately the method for effective and ease of cleaning such FRP (Fiberglas Reinforced Panels).

Facility Specifications

There are many established standards from organizations like the NFPA and ICC-IFC which are commonly cited and required by Fire Marshalls with appropriate fire engineering controls, room interlocks, etc. Knowing which classifications are required based on the room type has a major impact on facility specifications (e.g. C1D1, C1D2, etc.) and the ultimate design. This requires knowing which solvents you will be using (and equally important, solvents you will not be using) as well as identifying all of the activities you will be doing in your extraction/processing facility (winterization, purification, bulk or final product packaging, and more) and whether the rooms will be wet and dry (how will you be cleaning these rooms?). How you answer those questions will help you and your team select the appropriate room materials and overall design. 

Electrical Power Ideal Recommendations

Evaluate your utility power infrastructure, including street transformers and available power to your site when designing your facility. The power demand for a cannabis facility is significant and grid limitations can destroy or significantly delay the ability for a business to operate.

Losing power due to weather or events outside of your control are another major risk. When considering alternative power generation, consider a generator with auto-transfer switching and the appropriate fuel type, depending on location and local weather. Contact a local licensed professional. A generator can be an invaluable insurance policy as even a short duration power outage can destroy an entire crop and any products that must be maintained at critical temperatures. 

Equipment Rooms and Maintenance Rooms

Appropriate space for equipment and dedicated rooms for maintenance is commonly needed. These all come with different combustion air requirements, venting requirements, air exchange rates, vacuum lines, and more. You may consider a room for spare parts and tools.

Appropriate Storage Area: Biomass, Volatiles, Raw Ingredients, and More

Separation of raw materials with appropriate and dedicated storage areas is needed for the various types of raw ingredients and materials utilized within a cannabis facility. Volatile solvents require extremely specific storage requirements, which will become part of your Chemical Hygiene Plan once you are operational. Refer to your local Fire Marshall for code considerations and from code organizations like the ICC and NFPA.

Cleaning and sanitation agents should be segregated from materials that are utilized in final product formulations (e.i food ingredients, oils, etc.) and raw materials ahead of the design is critical to ensure appropriate storage requirements are met whether indoor or outdoor. Biomass storage can vary based on whether wet or dry and often require controlled temperature and humidity. Finally, do not forget the dedicated space needed for finished good inventory. 

Electrostatic Discharge (ESD) Safety

Do you know that shock you get when you are in your car in the winter or flipping on a light switch? Innocent in everyday life, but potentially lethal in an environment such as extraction rooms where highly flammable solvents could be present. Consider rated and non-rated clothing and other personal protection measures. 

Food Grade Oil Considerations and Inspections

Extracted oils that will be used downstream in edibles and beverages are akin to ingredients that require Food Safety endorsements such as cGMP.

Equipment Ratings

Before selecting equipment for use, evaluation criteria should be established based on your business needs and compliance. Some authorities having jurisdiction require extraction equipment to come with stamps, certifications, or endorsements from organizations such as ASME, UL, and NFPA as relevant to ensure equipment safety and fit for use.

Room Environmental Controls

Grinding rooms often need separate dedicated ventilation and filtration to be checked against grinding method/equipment and concentration of particulate (typically measured in parts per million (ppm) in the air. Dust collection systems for grinding equipment are effective ways to keep dust levels at manageable levels, reducing the need for time consuming cleaning procedures. Extraction and final product rooms may require additional ventilation considerations and monitoring sensors depending on the extraction method or final product type. Example: Solvents will require sensors and air exchanges located near the ground level since most solvent fumes tend to be heavier than air. 

HVACD Management

Designing your facility involves HVACD (Heating, Ventilation, Air Conditioning, and Dehumidification) management that considers airflow controls areas, airflow, and fire protection within control areas. Rooms may require positive and negative pressures with calibrated pressure indicators. You should aim at having a leveled constant environment.

Safety and Injury Handling

Facilities need to have sufficient accessible First Aid and Burn Kits on site. Safety and Emergency Showers are often determined by code and the type of extraction solvent in use at the locations. Eye wash stations may also be required.

Spill and Solvent Safety

In areas where solvents are or may be used, you will need to have barrier/spill kits specific to the solvents and extraction materials on hand. This barrier can be built in or hand delivered per emergency. Solvent storage locations, depending on the type of solvent and hazardous rating. 

Having one or two dedicated people to run point on spills can be part of a comprehensive spill procedure that would include evacuation of the area, assessment of the spill and of the clean up technique, disposal method, etc. There are many materials that are not compatible or properties that make them volatile under certain circumstances so having dedicated people to evaluate the situation will save you time, money, and any possible mishaps. 

Solvent Storage

Indoor and outdoor solvent storage are dictated by NFPA, ICC-IFC, and local regulations. Storage types and limits are essential to check before buying or building a facility. Fire professionals base these limits on several factors of flammability including class and volatility. You may also need to adhere to SARA Type III reporting depending on the solvent and storage amounts. Do not forget about solvent tank types, whether they need to be mounted or chained to walls, security access controls, and SDS requirements.

Solvent Enclosure

C1D1, C1D2 is needed for solvent use. The actual type of solvents (e.g. CO2, Ethanol, etc.), and volume of solvent will dictate the different requirements for enclosures. This section pertains to areas in which the solvent would be transferred, mixed, extracted, recovered, etc. The type of enclosure is dependent on the type and class of solvent. Most enclosures will have volume limits, containment, vapor detector, electrical and ventilation requirements. 

Emergency Ventilation

Ensure wall switch and fast ventilation, automated ventilation when sensors are activated during spill of contaminate.Sensors to be located where appropriate for the substance in use. Coordinated with the fire marshall to meet local requirements through design with architect and mechanical teams.

Employee Access Control

Limiting door access, proper security labeling, and key sets for employees need to be part of your overall security plan. LThe idea is to prevent unauthorized personnel from accessing the extraction space compliant with the local regulatory body. 

Equipment Regulatory Listing

There are requirements such as UL certifications/marks which are dependent on the actual device and intended use. Always contact your local code enforcement office and a licensed contractor.


Check Out These Related Articles for More Top Things to Consider When Planning:

Part 1 – Cannabis Cultivation Facilities
Part 2 – Cannabis Extraction Facilities
Part 3 – Cannabis Food Production Facilities
Part 4 –Cannabis Retail & Dispensary Facilities
Part 5 – Cannabis Facility Support Areas

Member Blog: Selecting the Right Cannabis Extraction Approach for Your Needs

By Albert Iannantuono, Co-CEO, CMO at extractX Ltd.

With demand for THC and CBD distillate products steadily increasing on a global scale, it’s never been a better time to be a cannabis cultivator, processor, or product formulator. When entering these industries, an often overlooked yet critical step in the planning process is choosing the right cannabis extraction solution. 

What are your options for cannabis extraction?

Depending on the amount of cannabis biomass you plan to process each year and the type of distillate you are trying to produce, you have three main options for meeting your extraction needs. You can:

  1. Partner with a mobile extraction lab company to extract at your facility without having to build your own lab
  2. Build your own fully-compliant extraction lab at your facility
  3. Hire a 3rd party processor (often called a “toll-processor”) who can manage extraction for you at their facility

Is a mobile cannabis extraction lab right for you?

A mobile extraction lab is a fully-certifiable clean room that has been retrofitted with ready-to-use extraction equipment. Built off-site to GPP, cGMP, and EU GMP standards, they are delivered and installed at your facility, staffed and operated on contract by the partner company. They allow for scalable production and help you avoid some of the pitfalls and obstacles of building your own extraction lab, keeping you focused on cultivation, product development, and sales & marketing.

Mobile labs allow you to extract at your own facility without having to build your own lab, outlay a large capital expenditure (CAPEX), or use a lot of floor space. You can leverage the expertise of the best engineers whose main priority is to create labs that produce the highest-quality distillate. Labs can be operational at facilities anywhere in the world within 4-6 months, and remove the burden of selecting the right extraction process and sourcing the right equipment. 

Mobile extraction lab partners are a great fit if you’re processing 50,000 lbs. to 2 million lbs. of biomass each year and want to outsource the lab CAPEX and ongoing staffing, SOPs, maintenance and upgrades to a trusted partner. These labs can also be incredibly useful if you want to test the market for new products, or want to expand into isolate or THC-free products through remediation and separation processes. 

[Check out this video of an extractX mobile lab being delivered to one of their partner’s facilities.]

Should you consider building your own cannabis extraction lab? 

If you have your products perfected, biomass sourced, and have a strong existing customer base, building your own extraction lab may be the right decision. If you’re processing over 1 million lbs. of biomass each year and have the facility space and financing secured, building your own lab can put you in a very competitive position in this emerging market.

It’s important to understand that building an extraction lab is no small undertaking. You’ll need to hire engineers to design the right process and source the right equipment for your needs. You’ll need to meet regulatory requirements and hire experienced staff. The entire process can take 12-24 months (or more) and cost $3 million to $7.5 million before you’re able to start processing, depending on the size of the lab and type of distillate you’re producing.

Building the lab is also just the beginning. Since the extraction industry is evolving so rapidly, new technology is constantly emerging that continues to improve production efficiencies and distillate quality. If you’re willing to commit to the massive undertaking of building your own lab, you must also be willing to commit to the ongoing compliance certifications, maintenance, and upgrades required each year to ensure your lab is keeping up with advancements in the industry. 

When is toll-processing a good option?

When processing smaller amounts of cannabis biomass (less than 50,000 lbs. per year), a toll-processor may be your best option. A toll-processor is a company that has built a large-scale extraction lab which they rent out to other companies. You would be able to load your cannabis biomass onto a truck, deliver it to the toll-processor, and then receive your distillate back from them. 

It’s crucial that you ensure this contractor is operating a fully-compliant facility, following GPP, cGMP, or EU GMP standards. You should check their references, certifications, and quality assurance promises before engaging with them, as you could be held responsible for the quality and contents of the processed distillate. Based on their capture rate and processing costs, you can gauge whether the toll-processor is right for you, or if you need to seek out another partner.

This option is great for small cultivators and processors as it allows you to avoid the major costs of building your own lab, and helps you get to market quicker and test the market viability of your products. It’s important to consider that challenges can occur if there are production delays, transportation issues, or issues with quality control.

Weighing your options

Image caption: [Since high-quality cannabis distillate has never been in higher demand, selecting the right extraction option is crucial to the success of your business.]

When examining these three extraction options for your business, it’s important to consider the immediate and future goals of your company. Do you hope to expand your production capacity over the next few years? How quickly are you trying to get to market? Do you have the resources and technical expertise to go it alone?

These are just a handful of questions to consider when exploring which extraction solution is right for you. Thankfully, the emerging industry is constantly creating new options to meet your needs.


A pioneer in integrated marketing technologies, Albert established his first successful business in 1986 and went on to build a solid track record as an entrepreneur that helped shape the digital industry. A talented leader whose business ranked among Canada’s fastest growing companies for several years running, Albert has assembled the strong management team that will drive extractX business forward. His keen business development approach has resulted in early adoption of extractX labs in global markets.

extractX Ltd. designs, builds, and operates turnkey pharma-grade hemp and cannabis extraction laboratories at facilities anywhere in the world. These fully mobile, purpose-built facilities fit into established industrial-scale operations and scale to meet the needs of cannabis and hemp cultivators and producers. Labs require no lab CAPEX to install, and produce the highest-quality THC and CBD distillate while meeting all GPP, cGMP, and EUGMP requirements and standards.

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