Are you overpaying for processing?

Are you overpaying for processing?

If you are paying more than a penny per gram to make your THC free distillate from flower you may be using the wrong process.

Recently PURE5™ introduced its 3 in 1 DEA compliant process for extraction, THC remediation and distillation. Then I started to calculate the cost of running our 3 in 1 process and I was astonished when the cost of processing with our lab level equipment came up to less than a penny a gram of THC free terpene rich extract. Can you believe that 1kg of pure CBD distillate can cost you $15 to make? 

Even better in economics if you do 50:50 or as more ratherly adopted recently 60:40 or 70:30 split with the farmer the OpEx cost of seed to market, using the PURE5™ process, for a liter of oil will be as low as $20. Lowest I have heard so far is that using fresh material and hexane extraction, which is a nasty way to make food products, for 100% CBD isolate the cost is around $300/kg. So now we have a winner as the broad spectrum strain specific and terpene rich oil is sold at 4 times higher price. 

Here is a simple math for the smallest lab setup. According to the PURE5™ recent offering of the complete process of creating 1-2 L/day high value isolated terpenes, live resins, full spectrum concentrates, broad spectrum concentrates and broad spectrum distillates for as much as $200K that includes the 3 machines: the 2x10L PURE5, the 5L THCF unit and the 6” distillation system

The efficiency of the PURE5™ R134a system is extremely high. As an example on the extraction side, the 20L unit works on 2kW power or that would be around 48kWh/day which at the cost of 13 cent a kW would be $5.75/day. Then with the 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 if you do 40lb/day the cost of extracting a pound of material will be around $0.64/lb. The cost per pound extracting with our industrial scale machines is dropping tremendously in times of that number.

The cost to run the PURE5™ 5L THCF remediation system is simply the consumed power. With a 250W system you spend 6kWh/day or $0.72 cent a day to remediate 1-2kg of material. So the cost to remediate a gram of material is $0.001 or simply less than a penny. The process is fully automated and supervision is not required. 

The cost of PURE5™ distillation 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.

So, using a simple math is that if you have 10% material it will cost you to process $12.8 + $0.72 + $0.84 = $14.36/kg applied to the terpene rich broad spectrum oil, or $0.72/lb applied to the input material, or a penny a gram ($0.014/g) calculated into the cost of the extract with our 3 in 1 DEA compliant PURE5™ system. Keep in mind that the next size of 200L will drop that cost by almost 2 times and so on… 

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George Stantchev, CEO

george@comerg.com 

(602) 992-0744

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