Given our popular post, “One Ton Per Day Hemp Extraction Facility,” we wanted to follow up with a recent extraktLAB® customer, SC Botanicals, and showcase their gratitude for our hemp oil extraction equipment in their facility.
Check out WSPA 7News’ video “Inside Upstate CBD Oil Processing Facility ‘SC Botanicals.’” Skip ahead to the 3:25 minute mark to see Chris Cortina, SC Botanical’s Director of Operations, discuss the extraktLAB Model 140 supercritical CO2 extractor.
As quality processors of hemp into CBD end products, SC Botanicals is well aware of the benefits that supercritical CO2 hemp extraction equipment brings to the table:
@ 6:55 “The other things to look out for are the different types of extraction methods have different byproducts. Supercritical CO2 extraction leaves no byproducts whatsoever because at room temperature, and normal conditions, it evaporates out just like your soda loses fizziness.”
@ 7:11 “With other extraction methods using solvents, such as ethanol or butane, you have residual solvents that remain in the material. So you’re consuming your CBD oil but you’re also consuming butane or ethanol or any other sort of solvent.”
How to Start Up Your Hemp Oil Processing Equipment
Our clients typically start small and then scale up every couple of months, as they reach the ROI on their Model 140 extractors. We offer the business plans to build to processing one ton of raw biomass per day with six of our Model 140s in an 800 sq foot extraction room.
extraktLAB’s business philosophy relies on modular, redundant hemp extraction equipment in facility design. Having six extractors allows toll processors to cut back on the downtime that comes from cleaning as you switch from one client’s batch of raw material to another in order to avoid cultivar cross-contamination.
Each Model 140 extractor is capable of turning 8kg of trim into 600-1,600 grams of crude oil every 60-minutes (depending on trim delta 9/CBD %). With a one hour runtime and two columns, there’s no downtime between runs. In this closed column extraction system, one 20L column is busy extracting 99% of your trim’s cannabinoid content at up to 5,000 PSI, the other column is being cleaned and prepped for the next run!
How to Scale Up Your Hemp Oil Extraction Equipment
Our CEO, Dr. Jon Thompson, penned the blog article, “How to Extract 1-Ton per Day,” back in August of last year.
In that article, he provides the key spacing and design considerations that go into building up a one ton per day extraction facility. For instance:
“All in all, you are looking at a 20′ x 40′ room with an additional 5′ on either side to house the peripherals. The adjacent schematic shows this setup” (Thompson 2018).
In addition, while building out your hemp extraction facility you’ll need to consider biomass storage:
“…55 gallon drums will typically hold 60kg [of trim] or 132 lbs at 10% water weight. So in order to warehouse a ton of material, you will need a place to store about 15 barrels or about 75 ft sq. You can stack the barrels or place them on pallet racking with a forklift and pallet for easy, modular storage” (Thompson 2018).
In addition to facility design and SOPs that work, we offer a commissioning package with on-site training: we’ll send one of our knowledgeable technicians out to your facility to ensure that your company is capable of producing quality crude oil.
With extraktLAB’s Model 140 supercritical CO2 extractor you can rest assured knowing that you’re getting “some of the fastest processing on the market today,” according to the GreenRushDaily article, “10 Best Hemp Extraction Machines On The Market.”
Whether you’re just starting up, or scaling up, an extraction facility — our team of PhDs has got you covered. Fill out a contact form (below) to see what we can do to help you grow!
REFERENCES: Hanna, Ab. “10 Best Cannabis Extraction Machines On The Market.” GreenRushDaily: 02 August 2017. Website: https://greenrushdaily.com/products/best-cannabis-extraction-machines/
Hyde, David. “One Ton Per Day Cannabis Extraction Facility.” extraktLAB.com: 18 December 2018. Website: https://extraktlab.com/one-ton-per-day-cannabis-extraction-facility/
Thompson, Dr. Jon. “How to Extract 1-Ton per Day.” extraktLAB.com: 27 August 2018. Website: https://extraktlab.com/how-to-extract-1-ton-per-day/
WSPA 7News. “Inside Upstate CBD Oil Processing Facility ‘SC Botanicals.’” YouTube: 07 December 2018. Website: https://www.youtube.com/watch?v=xGuauXXcMww
Frequently Asked Questions
Does hemp biomass need to cure before extraction?
No, the material does not need to cure. Our methods complete the final drying step in a vacuum oven to bring the water content down from 10% to the 1% – 1.5% range for efficient CO2 extraction.
Can the drying process be accelerated using higher temps/lower humidity?
There are several drying methods used by growers to accelerate drying, but this is outside our scope of solutions. We recommend researching the agricultural methods to find what works best for you.
What are the typical conditions to dry hemp for extraction?
Harvest drying methods are outside the scope of our solutions; however, you want to dry the biomass to roughly 10% water content for quality storage to prevent mold or mildew.
When producing CBD from hemp, which part of the plant is typically used?
Typically flowers and leaves – no stems or stalks. Some producers will sort out the flowers and process them separately, but most processing includes the leaves and flowers.
Can ethanol become contaminated during ethanol extraction?
Yes, ethanol can become contaminated during ethanol extraction. It is important that you address the contamination with testing and reuse protocols. guidance for solvent reviews have been published by the FDA in 2010. Please refer to the many articles in this blog for more information on cross-contamination with extraction.
What is the electrical cost of ethanol extraction vs. CO2 extraction?
Processing a ton of hemp per day into extracts can be an energy-intensive process depending on how the hemp is extracted. The following table compares the energy expense for ethanol extraction versus the energy expense for CO2 extraction:
|Energy cost for Ethanol Extraction for 1 ton per day at 1 gallon ethanol per 1 lb of hemp|
|18711||litres to cool from 25 to -20|
|16840||litres to heat and evaporate after ethanol loss|
|454||kwhr to Cool from 25 to -20|
|481||kwhr to heat to boiling point|
|3105||kwhr to evaporate|
|4040||kwhr total @ 100% Efficiency|
|$ 0.09||per kwhr|
|$ 506.36||per day|
|Energy cost for CO2 Extraction at 1 ton per day including winterization|
|636||litres to cool from 25 to -20|
|636||litres to heat and evaporate after ethanol loss|
|15||kwhr to Cool from 25 to -20|
|18||kwhr to heat to boiling point|
|117||kwhr to evaporate|
|151||kwhr total @ 100% Efficiency|
|$ 0.09||per kwhr|
|$ 18.92||per day for winterization|
|43.20||Kwhr per day for CO2 extractors|
|$ 3.88||Per day for CO2 extractors|
Would you recommend ethanol extracted oils for Vape products?
Due to the risk of chemical contaminants that are found in 25 to 30% of ethanol extracted oils, we recommend that CO2 oils be used for Vapor Products.
Is it possible to make a solventless extract with CO2?
It is absolutely possible to make a solventless extract with CO2. Solventless extracts are typically made with subcritical CO2 extraction methods.
Does ethanol extraction have a greater throughput than CO2 extraction?
Hemp processing equipment can be scaled for 1 to 5 tons of extracted hemp per day. It’s generally not a fair comparison to compare the throughput on an instrument from two different companies. What is fair is to specify the throughput At the tonnage process per day and then look at the operating cost for that process. You can also look at the equipment and Facilities cost to accommodate that level of Production. after you have all of your costs accounted for including the hidden costs, then you can calculate the net present value for each investment.
What are the most common denaturants in ethanol?
Denatured ethanol is a mixture of denaturants and pure ethanol. Chemical companies add the denaturant to Pure ethanol so that they will not be consumed as a food.
Denatured recipes are published by the ttb that is administered by the National Bureau of Alcohol Tobacco and Firearms. There are many different recipes. one of the most common denaturants used in ethanol extraction is heptane. However there are other substances that may be used including acetone, isopropyl alcohol, methanol and other longer chain alcohols.
Is very limited data on the safety of heptane over the long term exposure. In fact the limit that the FDA has placed on the amount of heptane in a tincture for example was established in the 1990s on the basis of a single study published in 1981. That study the effect of heptane on Sprague dawley rats. That is why there are many disclaimers and the general guidance from the FDA is to limit the amount of solvent in any drug that is consumed.
Doesn’t ethanol extraction equipment remove all the ethanol from the biomass after extraction?
No. Approximately 5 to 10% of the ethanol is left in the biomass and is counted as a solvent loss. These solvent losses add up to operating costs. This is especially true if organic ethanol is used or food grade ethanol is utilized as the extraction solvent.
If you had an ethanol extraction facility, would you ever use CO2 just for stripping terpenes?
Ethanol extraction typically destroys the terpenes when the ethanol is removed from the extract or is distilled from the winterized oil. Many ethanol extractors are seeking a way to preserve the terpene profile of the plant in the output oil. To this end people have tried techniques such as Steam distillation, CO2 stripping, and vacuum distillation.
Certainly, CO2 can be used to strip terpenes from Hemp biomass Prior to ethanol extraction. However, vacuum distillation is by far the most gentle and effective way to harvest the terpene profile prior to ethanol extraction.
How do I model and compare the financial return of ethanol extraction vs CO2 extraction?
There are many inputs that need to be defined when creating a financial model comparing two different extraction methods. The first decision to be made is to decide what the financial metric will be used to make a decision on the superiority of one method over the other.
In this case, we recommend the use of the Net Present Value as the way to model the return of each extraction technique because it accounts for the cash flow associated with the operation. Many ethanol extraction companies try to make the argument that ethanol extraction is lower cost because the equipment cost is less. However, the equipment cost will have very little impact on the overall profitability of the operation at the same throughput.
The best way to compare the two techniques is to fix the throughput so that an apples-to-apples comparison can be made. Comparisons such are payback time and return on investment can mislead someone into making a bad investment decision.
So if we fix the throughput at one ton per day the cost of the hemp is equal between the techniques and operating cost variance is the only contributing factor.
Here are the twelve key questions that need to be defined in order to do a comparison:
- What is the direct labor to process?
- What is the energy to process?
- What are the solvent losses?
- What are the direct material startup costs including solvent startup costs?
- What are the cannabinoid recovery rates?
- How much solvent do I use, reuse, and when do I need to replace the solvent with fresh solvent? and at what interval?
- What is the insurance cost for each option?
- What is the cost of hazardous waste disposal?
- What is the cost of solvent removal?
- What is the cost of reuse of the solvent?
- What is the cost of HAP emissions?
- What is the depreciation for each option including building costs for H2 vs F2 occupancy?
Once these questions are answered you will be able to build a pro forma income statement.
- Standard labor
- Standard materials
You can then hold SG&A and R&D constant for both techniques and account for the difference in depreciation to get to a net margin number.
A cash flow statement can then be generated from net margin. One thing to note is that depreciation must be added back to net margin as it is a non-cash expense on the income statement.
Cash flows are then added up for 5 consecutive periods (years) including the initial outlay of cash for startup working capital. Those cash flows are then discounted at a discount rate (Weighted average cost of capital estimate at 13-17%).
If you do this analysis, you will find that CO2 extraction will absolutely crush ethanol extraction in terms of net present value.
Does it cost less to process hemp with Co2 compared with Ethanol?
In fact the operating cost for CO2 extraction is dramatically less than the operating costs associated with ethanol.
Extraction with Ethanol is a process that is typically run at low temperatures. First the ethanol is cooled to below -20oC before it is introduced to the hemp. Cooling the ethanol reduces the amount of extracted chlorophyll and waxes. If you account for the energy required to chill the ethanol down to those low temperatures and then also evaporate after use, the energy bill for extracting ethanol is approximately 3-6x the cost of extracting with CO2. However, the energy cost is really not the key driver in the overall operating costs.
Ethanol extraction requires a significant amount of ethanol to be used per pound of hemp. In fact, about 1 to 1.5 gallons of ethanol must be used per pound of dry hemp in order to extract. Hemp is a very absorbent biomass material and the ethanol must fully saturate the hemp plant before any extraction can take place. For this reason a large volume of ethanol is needed to extract cbd from hemp.
The key cost driver or ethanol extraction is recovery of that solvent from the biomass. Even though many ethanol extraction equipment companies provide centrifuges and or presses to eliminate the amount of ethanol left over in the biomass, The best equipment will provide only a 90 to 95% recovery of the ethanol. This 5 to 10% loss in ethanol is a huge cost driver for extracting ethanol.
For example, suppose you wanted to process 1000 lb of hemp. You would need 1000 gallons of ethanol to start out at a cost of $16-33 per gallon for food grade ethanol for a total cost of $16,000 to $33,000. If you recovered 90% of the ethanol the ethanol loss would be $1,600 – $3,300 per 1000 lbs. Furthermore if you process 1000 pounds per day, this would be your daily loss.
In contrast, you will lose the equivalent of about $70 per day for CO2 extractions for the exact same process.
Besides energy and solvent usage, there are many other hidden costs related to extraction with ethanol including solvent reuse costs, insurance cost, increased facilities cost, and testing costs.
Is CO2 cheaper than ethanol?
A pound of food grade ethanol when purchased in bulk is $4.71/lb at current price.
A pound of food grade CO2 when purchased in bulk is about $0.04/lb at current price.
What’s the purity of the CO2 used in CO2 extraction?
There are many grades of CO2 including industrial and food grade and medical grade. We typically use food grade but medical grade is also highly desirable. the specifications for each of these grades are published by the Compressed Gas Association or by your gas supplier.