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Are you overpaying for processing?

Are You Overpaying For Processing

Author

Dr. George Stantchev
Dr. George Stantchev

PHD, MBA, MSEE, Entrepreneur and CEO of most innovative extraction technology company.

If you are paying more than a penny per gram to make your THC distillate or broad-spectrum distillate all the way from flower you may be using the wrong process.

Recently PURE5™ introduced in 2020 its 3 in 1 DEA hemp compliant process for extraction, THC remediation and distillation. The operational cost (OpEx) of running the 3 in 1 process with our lab level equipment is less than a penny a gram all the way from flower to THC distillate or broad-spectrum terpene rich extract.

Even better if you do 50:50 split on the material the OpEx cost of seed to market, using the PURE5™ process, for a liter of distillate will be as low as 20 USD/kg. We have a better technology that can give you the best distillate or a broad spectrum strain specific and terpene rich oil sold at 1:100 margin. 

What is the return of investment (ROI)? In the hemp field if you make 2kg/day high terpene broad spectrum distillate, that oil  will sell at around $1200/liter. That is $2400/day sold value as a raw material or $9,000/day if sold in end products.

For cannabis products it will be at least 3x those numbers. If the complete lab cost is $199,000 the equipment will be paid off in 90 days if hemp is processed or in 30 days with cannabis processing.

According to the PURE5™ recent offering of the complete process of creating 1-5 L/day high value isolated terpenes, live resins, full spectrum concentrates, broad spectrum concentrates and broad spectrum distillates for as low as $199K that includes the 3 machines: 2x10L PURE5™, 5L THC Remediation Unit and 6” Thin Film Distillation System

the 5 litre thc remediation machine manifactured by Comerg

How the OpEx is calculated? The extraction efficiency of the PURE5™ R134a extraction system is over 95% and the 20L unit works on only 2kW power or that would be around 48kWh/day which at the cost of 13 cent a kW would be $5.75/day.

Utilizing a fully closed loop system the cost of the solvent would not be more than $1/extraction or $20/day. So at the end of the day for processing 40lb/day the cost of extracting a pound of material will be around $0.64/lb.

The cost to run the PURE5™ 5L THC Remediation system is the consumed power.

With a 1000W consumed power you spend 24kWh/day or $3.12 a day to remediate 1-5kg of material. The cost to remediate a gram of material is $0.001. The process is fully automated and supervision is not required. 

The cost of PURE5™ cannabis and hemp distillation equipment is based on a 7kW system that does 2kg/h processing, or uses 168kWh/day energy cost around $20.16 to distill 48 liters or $0.42/liter to distill.

In a summary if you have 10% material it will cost $0.72 to process a pound all the way from a flower to a terpene rich broad spectrum oil. Therefore, the overall OpEx cost to process material with our 3 in 1 DEA compliant PURE5™ system all the way to consumer ready product is around a penny a gram. 

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George Stantchev, PhD

george@comerg.com 

(602) 992-0744

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