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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/

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.

Member Blog: Common Sense and Not – Tips to Maintain Safe Extraction Processes

by Xavier Jaillet, HAL Extraction

After years of trial and error, the modern extraction equipment and standard operating procedures have removed a significant amount of risk from volatile solvent extraction processes. As more and more states are looking to adopt marijuana policies involving volatile solvent extractions, I wanted to share some insights about safety I have learned in my 5 years of working in and with various extraction labs. Some of this may seem intuitive and obvious, some of it may not. 

Employee Safety

Employee safety is the most important facet of safety in an extraction operation. Your employees are your greatest variable, but also the things you want to protect the most. Loss of life or limb is no joke and can often contribute to significant fines, license suspension, or even a total shut down – not to mention the emotional strain an injury-inducing incident can put on everyone. 

I like to simplify employee safety into two areas: preparedness and equipment. Although your employees are a large variable in your operation, proper training, protective equipment, and process expertise will keep them safe from all but the direst of situations. Proper training should cover equipment usage, company SOPs, and hazard responses. Hazard responses will include emergency exit strategies, process shutdown, flushing station use, and will generally cover what an employee should do if hazardous conditions become present. Consistent training for your entire team will ensure that employee groups can regulate each other – one employee may catch another employee doing something that violates a company code and can prevent further incidents from occurring. 

Equipment, in this case, means the personal protective equipment, or PPE. All extraction processes involve pressure, chemicals, or moving machinery and can cause bodily harm to your employees. At a minimum, employees should habitually wear goggles, gloves, and closed-toed shoes. Given that there are chances for chemical spills and irritation from fine plant matter particles, long sleeves and pants are also recommended – most labs are providing lab coats for their employees to fulfill this need. It is generally advised that you, the employer, should make protective equipment accessible to your employees and not require them to provide their own equipment. If your extraction processes involve hydrocarbons, make sure employees are aware of static build-up from their clothes. It is important to note that PPE generally doubles to prevent foreign materials from contaminating your product – hair and beard nets will provide added protection. 

Equipment Safety

I like to consider equipment safety as an extension of employee safety because equipment failure or incident can typically be directly attributed to misuse by employees. Proper training is going to have the greatest impact on equipment safety, but installation, maintenance, and inspections will also dictate the longevity of your product and safe usage by employees. After selecting the proper unit for your operation, you should make sure that the unit is installed by a certified source. Most equipment manufacturers (EM) will offer training for you to have one of your employees be certified, or the EM will have a traveling resource that can visit your facility to ensure that install is done up to their standards. Once your unit has been installed, you need to have a 3rd party inspection done on your equipment and its operating area. One option is Pressure Safety Inspectors (PSI) – most local authorities will be happy to see a PSI stamp of approval and it will likely speed up your inspection process. 

After initial equipment set up and approval, equipment safety largely boils down to maintenance and employee inspections. Most extraction units use components that will degrade over time: seals, gaskets, nuts and bolts, solvent lines and filters to name a few. You should implement a consistent replacement schedule, regardless of the appearance of these components, to ensure that they don’t become liabilities.

Beyond components, employees should also be performing regular integrity inspections of all unit vessels – if any damage is apparent, it is paramount that you contact the manufacturer to replace that component. Do not perform repairs on your own. 

Facility Safety

Finally, we have facility safety. Luckily, modern technology has largely made facility safety autonomous – smart sensors detect solvents to ramp up airflow, fire suppression systems are automatically deployed, and control spaces can react efficiently to hazardous situations. However, because employees are still present, I do want to point out some areas that may be overlooked when it comes to facility safety.

First, signage. Signage can be anything from exit signs to hazardous material signs to reminders that PPE must be worn inside operating areas. Humans can be lulled into a sense of false security or forget important steps to operating safely and visual reminders go a long way to ensure that your employees are approaching their day to day tasks with the appropriate level of preparedness. Signs will also help employees efficiently vacate a space if there is a hazardous situation present – make sure your doors have panic bars and open outwards!

Another seemingly obvious, but often overlooked area of facility safety is the removal of ignitions sources from areas that contain hazardous materials. You must ensure that all equipment and components in a control area meet the electrical rating specified for that space. For example, a heat gun should never be used to expedite off-gassing of volatile solvents… it still happens more often than you would expect. Static build-up can occur because of certain textiles used in clothes along with plastic trash bags in plastic trash receptacles. Even tools should be spark-proof if they are going to be used in a control area. 

Hopefully, some of the above information helps you ensure that your extraction processes are operating as safely as possible. As a parting thought, please listen to your employee’s feedback. If they feel unsafe or are questioning a process, do not write them off. They are on the front lines working in hazardous environments and will often see an issue before it becomes a catastrophe. As always, this is meant to be a guide, and you should always consult local authorities and follow regulations. 


Xavier Jaillet has been a part of the cannabis industry since 2013 and worked in both businesses that are plant-touching and those that provide ancillary services to plant-touching operations. A brief stint in the mining, construction and transportation safety sector gave him a unique appreciation for safe operating practices and led him to HAL Extraction. HAL Extraction focuses on improving safety for manufacturing operations by designing smart, efficient, and effective extraction booths.

Member Blog: The Days Of Breaking Bad Are Over… Sort Of

by Meghan McCormick, Ph.D, Spektrum Cannabis Technologies

With the expanding decriminalization of marijuana and hemp and increasing market demand for cannabis concentrates, more people are assuming the role of pseudo-chemists or lab technicians without formal training. People no longer need to ‘break bad’ by extracting and processing cannabis in their garages, kitchens, or old RVs. Commercial laboratory spaces are becoming more common. Unfortunately, without formal laboratory training, appropriate laboratory safety habits are often not established. The ‘whatever-it-takes’ mentality plus some questionable lab techniques add up to be quite dangerous in a pursuit for the ‘good stuff.’ 

Solvents used for extraction, though often odorous, are clear and colorless and therefore invisible in vapor form. They are often handled in the lab like water. For those manufacturing cannabis concentrates for retail, the focus has been on possible regulations set by the FDA, but these new, small businesses are also under the jurisdiction of OSHA. While studying industrial hygiene standards written by OSHA, most safety practices seem like common sense, but only after the chemical hazards are recognized. 

For more in-depth safety standards and fire codes for non-glassware or non-laboratory-scale (read: industrial-scale) extraction and processing equipment, ANSI/CAN/ UL/ULC 1389 or NFPA 1 Chapter 38 are great starting points. 

Most of What We Breathe Is Invisible

As mentioned above, the solvents used to extract and process cannabis are either gases compressed into their liquid form or clear, colorless organic liquids. [Note: here ‘Organic’ means a substance that contains carbon, not the label you find at your grocery store]. These solvents include ethanol, propane, butane, pentane, hexane, isopropyl alcohol, methanol, acetonitrile, and other less common ones. 

The danger of these solvents is that even when they are cold they vaporize easily enough for inhalation, some without harsh odors as a warning. Opening containers, glassware, or vessels without proper ventilation or PPE (personal protective equipment) exposes laboratory workers over a short time and many times a day. This exposure can occur during simple acts of pouring, transferring, heating, drying, mixing, or weighing on a balance. While many of the solvents used have a GRAS designation (generally regarded as safe) by the FDA, this label is used for food additives with the intention of ingestion, not inhalation. There are a few research studies on the toxicological effects of breathing in these VOCs (volatile organic compounds) in a short period of time. However, chronic studies of consistent exposure for years are rare. NIOSH, or the National Institute for Occupational Safety and Health, provides a decent summary of worker exposure studies for common industrial chemicals. Some of which can cause respiratory effects that evolve into allergies or even neurological damage. Unfortunately, most of the toxicological literature available can be decades old.

Yet laboratory technicians are not the only ones exposing themselves to a potential hazard. Working on large-scale extraction equipment, workers come into contact with large plums of high concentrated VOC when opening extraction tanks and vessels. This process happens many times a day when workers reach in to load and unload bags of cannabis biomass. Exposure also occurs through skin contact, as many of these solvents absorb into uncovered skin.

Gases under pressure are yet another non-chemical hazard. Compressed gas tank cylinders need to be transported and stored safely to keep them from falling over and crushing limbs. If a cylinder valve breaks off, they turn into a projectile missile, or they become damaged enough to rupture and release thousands of liters of suffocating gas within minutes or seconds.

Carbon dioxide solid in the form of ‘dry ice’ is often used in large amounts for cold traps in cannabis oil processing. Dry ice easily sublimes, where the solid form converts directly into a gas. Gaseous carbon dioxide is much heavier than general air and can easily displace oxygen in closed-off storage areas. Oxygen sensors, proper ventilation, and limited exposure help to avoid hazardous side-effects of oxygen deprivation.

The Tools to Keep Everyone Safe Are Out There

Any workplace that handles or stores chemicals should have the corresponding Safety Data Sheets (SDS) of the chemical. These are usually obtained from the manufacturer of the chemical, but there are also free databases online for easy access. All SDS’s should be available for easy access to workers who handle or are in an environment that uses chemicals.

OSHA also provides its own chemical database system that lists the physical properties of chemicals as well as their permissible exposure limits (PELs) and short-term exposure limits (STELs). These limits are used for compliance purposes, but in short, they provide a rough guide for how dangerous it is to breathe in some of these chemicals. Note that OSHA’s exposure limit guidelines may be outdated as many have been written 50 years ago when OSHA had been founded! For the latest guidelines visit NIOSH and ACGIH.  These organizations/agencies keep up with current toxicological research and provide more up-to-date exposure limits that are sometimes significantly lower. Air sampling of your workers can always be done through an AIHA-accredited laboratory that will send out certified industrial hygienist to sample during a work shift.

Any industrial hygienist will tell you that the use of PPE is the last line of defense against chemical hazards and exposure. Engineering controls like proper room ventilation and local ventilation, including fume hoods, exhaust hoods, and elephant hoses, are some of the best ways to avoid exposure through inhalation. Fume hoods are almost always found in laboratory spaces; however, it’s easy to form bad habits when using them. For example, storing large objects and numerous chemical bottles inside the hood significantly blocks the proper airflow that needs to occur to make sure any vapor is properly ventilated. The sash (or glass door) should always be kept as low as possible and especially below the chin of the person working at the hood. Newer models of fume hoods have airflow monitoring devices and alarms systems to make sure the face velocity of the hood is between 80 and 120 fpm (feet/min).

Finally, PPE that fits comfortably, doesn’t interfere with the flow of work, and is rated properly for the hazards of the chemicals used, is a definite requirement when working with chemicals even when other controls are in place. 

When effective local ventilation is not available for situations where a large plume of solvent vapor is expected (e.g., opening an extraction vessel to remove biomass bags), a full-face or half-face respirator is the best option to prevent exposure. 

Respirators have specific cartridges that stop the inhalation of certain hazards. VOC cartridges are required to keep out the organic solvents most used. However, respirators will only protect as they meant to be if they are fit-tested, and properly cleaned and stored. 

Last, eye protection via safety glasses is an obvious and thankfully well-practiced habit even in workplaces without chemicals. Unfortunately, the commonsense practice of making sure workers are wearing long pants, shirts with sleeves or lab coats, and closed-toe shoes (preferably non-absorbent) is more difficult to enforce if the location is in warmer climates.

All that said, for those who are dabbling in the new, exciting world of cannabis extraction, let’s hope they are following Walter White’s lead and suit up before they get to work.


With more than 15 years of experience working and teaching in chemistry laboratories, Meghan McCormick, Ph.D. is the Senior Chemist and a part of the Herban Legends team at Spektrum Cannabis Technologies, an innovative, fit-for-purpose engineering services company. Meghan serves as the resident expert in the chemical processes that occur during cannabis extraction and post-processing and has helped design and test the Spektrum industrial-scale cannabis processing modules. Meghan worked as a Senior Chemist for the OSHA Salt Lake Technical Center for 3 years. She received her Ph.D. in Inorganic Chemistry at Indiana University studying organometallic electrocatalysis and anti-cancer prodrug activation mechanisms.

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