Are you overpaying for processing?

Are You Overpaying For Processing

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Picture of 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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