Cannabis Processing: Manufacturing a Sustainable Future
It’s easy to assume that an industry focused on horticulture and growing large quantities of plants, would also have a positive impact on the planet. However, sustainable cannabis manufacturing is only in its infancy. Due to varying legal statuses surrounding the use of marijuana, the legal cannabis industry is often encumbered with:
Heavily monitored security protocols
Strict packaging requirements
Increasing regulation
Many of these regulations are to protect consumers, however, it cannot be ignored that the commercial solutions resulting from regulation have forced a potentially green industry to go brown. This is in part due to cannabis cultivation being driven indoors after being labeled a schedule 1 drug, and then remaining indoors to help meet the growing requirements surrounding product safety (e.g., reducing the levels of mold and insecticides.)
Cannabis manufacturers face similar challenges. For example, regulations surrounding tamper-proof packaging for resins, vape oils, and concentrates makes recycling an uphill battle due to the components currently needed to manufacture the child-proof mechanisms.
Even so, we believe that a future where cannabis concentrates are manufactured in “green” facilities is not only possible, but inevitable.
Sustainable Cannabis Manufacturing: Myth or Reality?
Triaging the challenges associated with building a sustainable cannabis operation is no easy task. This is because each pillar (cultivation, processing, distribution) affects the whole supply chain from farm-to-toking. Cannabis cultivation is currently on the front lines of sustainability, creating sustainable farming solutions such as innovations in LED grow lights and increasing the use of greenhouse farming.
While under less pressure from regulators, cannabis processors realize it’s time to discuss identifying areas within their businesses where they can begin doing their part in making sustainable cannabis manufacturing a reality.
Economies of Scale and Sustainable Manufacturing
Whether you process artisanal bubble hash or manufacture vape oils, economies of scale will have an impact on your growth and revenue. Your business is either profitable due to the amount of product you sell, or because of the higher value of established, branded buds with popular terpene profiles.
Both business models are refined by internal and external efficiencies and these processes can and should be developed to support sustainable manufacturing.
If you’re manufacturing cannabis concentrates, then you likely fall into one of two groups:
You intend to scale your business to sell more products, allowing you to spread your expenses over a greater number of units;
Or you intend to process some dank, artisanal bud and sell at a premium price point.
Either strategy can be profitable. One relies on internal economies of scale, while the other benefits from external economies of scale as cultivators, processors, and dispensaries innovate towards environmental synergy.
Sustainability and achieving the cost savings that accompany economies of scale don’t have to be mutually exclusive. Cannabis processors that are mindful of future regulations, as well as those wanting to be environmentally responsible, are finding ways to grow their business without taking shortcuts that harm the ecosystem. Let’s look at an example.
Leveraging Economies of Scale for Sustainability
To quote a popular aphorism, “A rising tide lifts all boats.” This well-known phrase is the simplest way to explain external economies of scale. As the cannabis industry grows, all sectors benefit. And in many instances, internal economies of scale make for perfect opportunities to tweak your processes to be more environmentally friendly.
For example, let’s say you manufacture a popular, full spectrum vape oil in a state with 57 dispensaries (e.g., Ohio) and the state increases the number of dispensaries to 130 to facilitate the increase in demand. The increase in availability to customers will allow you to:
Raise the price of your premium vape oil, increasing profits.
Increase your extraction output while decreasing the price of your oil, enabling you to sell more cartridges, decreasing processing costs per unit sold. (i.e., internal economies of scale)
In either scenario, your cannabis business thrives. And if you choose to increase your vape oil output, this provides an opportunity to revisit your operating procedures and find ways to integrate sustainability into your SOPs. This includes looking for ways to decrease energy usage, reduce waste, and reinforce eco-friendly habits at your business (such as recycling.)
Turning Waste into Profit: BeneLeaves
In a recent SCC (Sustainable Cannabis Coalition) podcast, BeneLeaves discussed how their company uses every part of the cannabis plant to reduce waste. Jeff Hollenback, COO for BeneLeaves, explained how cannabis processors can use marijuana lipids (plant fats) to manufacture lotions and even THC or CBD capsules.
Where many cannabis manufacturers go through the process of destroying and disposing of plant waste post-extraction and winterization, Jeff thought to have the lipids tested for THC. The results came back reflecting the “waste” contained an astonishing 47% THC. This may not represent the cannabinoid content of all post-extraction lipids, however achieving a sustainable cannabis manufacturing business requires the kind of ingenuity displayed by BeneLeaves.
Also of note is that waste reduction not only contributes to sustainable manufacturing but also opens the door to increasing how much revenue a processor can glean from their original plant material.
Solvent Reclamation and Recycling
Cannabis manufacturers wanting to save money on solvents such as ethanol and hydrocarbons are already developing processes to become more sustainable, even if they don’t realize it.
Carbon dioxide and hydrocarbons have a highly negative effect on the environment, contributing to the greenhouse effect and global warming. Investing in solvent recyclers greatly reduces solvent waste, ensuring fewer chemicals are introduced into the ecosystem.
Regardless of where a cannabis business stands on the issue of sustainability, responsibly reclaiming and recycling your extraction and distillation solvents both reduce costs, as well as contribute to environment-friendly cannabis manufacturing practices.
Cutting Costs, Not Corners
Like any business, educating your employees to keep sustainability top-of-mind throughout their day to day tasks can go a long way in keeping energy costs down. This may include:
Turning lights off when they are not necessary and switching to LEDs in your building.
Using smart thermostats to reduce energy usage in the heat of summer and the chill of winter.
Switch to recycled and recyclable products in your break rooms.
Operating a profitable cannabis processing and manufacturing business comes paired with significant investment costs. Distillation equipment, rotary evaporators, and vacuum pumps are just a few supplies cannabis manufacturers must invest in when starting a cannabis processing business. And skilled labor is almost always required to operate the equipment properly and safely.
Given the investment needed to start a flourishing cannabis manufacturing business, finding areas to reduce energy usage and waste make perfect sense. As we mentioned, these practices help reduce operating costs while also benefiting the environment. As Eric Myers, COO for Omega Equipment & Supply, stated in the SCC podcast,
“When we talk about sustainability, everyone thinks it’s going to cost them more money. However, with some creative thinking and really understanding your customer, there are ways you can have a win-win scenario.”
– Eric Myers, SCC Podcast
Setting an Example for Future Cannabis Manufacturers
As we commercially cultivate, manufacture, and distribute nature’s medicine, cannabis operations cannot afford to ignore the social-environmental impact they have on the planet. When businesses consume large amounts of natural resources, this not only has a negative impact on the environment but also the communities of people whose lives are affected by the resulting pollution and resource scarcity (e.g., fresh water and soil nutrient depletion.)
Being aware of our impact on society and the environment isn’t enough. We must step forward from just being “thinkers” to becoming “doers.” And organizations like the Sustainable Cannabis Coalition are doing just that – bringing industry leaders together to find ways to solve the issues surrounding sustainable cannabis manufacturing together.
Environmental Accountability Starts with Us
For a relatively new industry, pioneers in cannabis cultivation, processing, and customer distribution face colossal challenges that most industries have had time to ease into. However, those leading the way in bringing medical and recreational marijuana to the mainstream are up to the challenge. Their creativity and passion are unrivaled, facilitating a heightened awareness for sustainable cannabis farming and manufacturing.
As stewards of a planet whose generosity has been taken advantage of cannabis business owners have an opportunity to pave the way towards ecological farming practices, as well as sustainable cannabis manufacturing processes. Proving that cannabis can be both commercially viable and eco-friendly is not a “pipe dream,” it’s 100% achievable if we work together.
“Big things have small beginnings.”
– T.E. Lawrence, Lawrence of Arabia
Thanks to the efforts of the SCC, we are discovering that we can increase the scale of cannabis manufacturing while remaining true to our roots – leaving the planet in as good of shape as we found it. We’re confident that with companies like BeneLeaves, Omega Equipment & Supply, the SCC, along with increasing community support, cannabis has a very bright future.
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Omega Equipment & Supply (www.omegastore.com) is a full-service supply chain solution for the cannabis industry – serving cultivators, processors, manufacturers, dispensaries/retailers, distributors, and testing facilities. We have nationwide distribution through our network of 5 distribution centers. We also offer custom fabrication in addition to a full range of equipment and supplies for the cannabis industry.
BeneLeaves (https://www.beneleaves.com/) is a licensed manufacturer that meticulously sources cannabis strains from trusted Ohio growers that target the 22 qualifying medical conditions recognized by the state of Ohio.
