We are building a highly automated closed system industrial scale extraction through-put facility.

The equipment costs (for The Precision ethanol based KPD-500), including the complete set-up  with minimum of 7 days of onsite operation tutorials are $1.5 M This system can process 500 kilograms of Biomass daily on one run per day or 1,000 kilos if run for two shifts.

The Thompson Global Engineering set up cost is $3M total. $2.5 M for throughput line of 2,000 kilos of bio-mass per 16 hours. $500K is for after install training and the upgrade frontend to 4,000 kilo capacity per day.

The building required to house the operation… is a 10,000 sq.ft concrete slab with steel prefab @ $40  per sq ft = additional $400K with $100K prudent reserve

The land is at Spokane WA with a 20 year lease with Gary Galbraith

The ExtracktLabs Set-up is also an end to end complete through-put system which is a C02 based extraction. It costs $975,000 and requires a much smaller building. It processes 128 kilos of Bio-Mass per day… full 24 hours required. Impractical for hemp but, it can fulfill The Spokane Tribes wish to supply THC products to their casinos.

Here Are Some Demand Excerpts
Please Research This Yourself Too!

Click the Below Images to Expand Their Size For Reading

The alcohol (ethanol) extraction yield number are as follows.

Yield of plant oil is controlled by it’s genetics… if you look at the above ad where the person looking for “Toll Processing” you will see the various percentages varying according to the different strains of Hemp. Regular “Industrial Hemp” contains only about 2% of CBD. However, many cannabis strains have now been “Bred” to have a high CBD concentration and be below .03% THC which therefore satisfies the current definition of what is “Hemp” and what is “Marijuana”. Hemp has .03% THC or less and Marijuana is assigned as the category if the plant contains more.

Ethanol is the more economic of the extraction methods… particularly when it comes to “bulk quantities”. there are several processes to any refined extraction product. It is made into a crude oil at it’s first stage and then  it is winterized/evaporated/distilled to produce a high CBD content distillate quality. It is taken one step further to produce a crystalline powder which removes everything but the CBD molecules where it is then evaporated again leaving a crystalline powder.

These two products are the sole focus for our beginning production. We make crude oil and turn that into these two products for wholesale. The market is currently at 5-10K for these two items… and you will find very little available at that $5K number if at all… and only in buying a significantly large quantity to get such a price break… although usually still around $5400.

Why would we make more than one product… if there is a product worth $10K… opposed to the other being worth only $5400 or $6400? Why not make only the one item at the $10K price point? Good question. The answer is yes, we would turn all our production to that one product if the market absorbs all of our capacity for distillate production. However, we are designed for the other isolate product also… as it is the precursor to the distillate anyway. There is virtually an unlimited demand for the isolate which is used in all the growing myriad of CBD product forms.

There is not nearly enough isolate for the demands of the exploding market. THAT is why the prices stand at $6-10K WHOLESALE for these products.

So our business plan at this point is staying laser focused in collecting as much of this revenue as possible before the well known stampede of entrepreneurs, who are planning to capitalize on this opportunity, can sort themselves out. There is a current cluster clump of disorganized processors and a major disconnect between farmers and processors. It is the fact of the current market. This is the serious problem in the market that we suggest to use to our advantage.

Just look at the ad in the images above… you will see an offering of 69,000 pounds of Bio-Mass… Here is a professional in business who is HAVING to ADVERTISE to find an exit for his product. And this is only one of endless solicitations asking for Toll Processing extraction services.

The farming community has embraced this new cash crop as their new opportunity. The problem is there is a log jam of not having the processing capability to handle the farm produce and at the same time the market demand is skyrocketing.  The price of the wholesale CBD products and the backlog of the biomass is what confirms these absolute facts.

Our thorough analysis projects that this disarray of processors can not possibly begin to sort itself out sooner than 12 months… and that is a ruthlessly conservative estimate… because it will under the best of circumstances really take 18-24 months.

Let’s take a look at what this means

For ease of projection let’s use an example of raw hemp plant material with a 10% CBD Content.

Our KPD 500 will process 500 kilos of 1100 pounds of raw hemp per 8-10 hour work day… turning it into a finished CBD Isolate of 85% plus CBD. We are currently selling that product at $6400.

So 1100 X .065% = 71.5 liters of Crude oil

Toll Processing is a consignment deal…
where the farmer consigns the Bio-Mass to the extractor for 50% of the return
Typically, the extractor will have the customers… that the farmer does not have… for the finished product (although the farmer is always welcome to have their share of the product) if extractor is selling for the farmer… that is where it is most typical to see the lowest prices per kilo. Farmer get $5K to $5200 and Extractor picks up 10-15+% commission for handling the farmers share.

When we have our own buy cash in hand we can pay for crops out of pocket and most often end up with additional 25%.
Only accepting Toll Processing to the extent of making sure our production is continuous.

The KPD requires 4 operators per run
we plan to assign 6.

This is current Bio-Mass from Suma-Holdings in their walk-in freezer in Medford, OR. We could process every bit of it… if… we had a set up… they are among the stranded.