Investorideas.com, a leading investor news resource covering hemp and cannabis stocks releases a snapshot looking at the growing interest in renewable energy and sustainable practices within the cannabis industry, sparked largely by high demand, high energy usage and a need for companies to lower costs and improve efficiency.
For Millennials that are known to be big investors in the cannabis space but also wanting to invest in sustainable technology for the future, this may be the perfect blend. According to recent data, “Aurora Cannabis outpaced Apple as the favorite stock on Robinhood, a free-trading app popular among millennial traders.”
“Legal cannabis cultivation in the U.S. consumes an estimated 1.1 terawatt-hours of electricity a year,” according to the 2018 Cannabis Energy Report, published by Scale Microgrid Solutions, along with New Frontier Data and the Resource Innovation Institute.
“That’s enough to power the whole of Newark, New Jersey or Anaheim, California,” the report states.
Aurora Cannabis Inc. has been aware of this need for energy efficiency since 2017, having partnered with Flora Fotonica through the company’s subsidiary MedReleaf.
With the company building large scale facilities such as their Aurora Sky, an 800,000 square foot facility and Aurora Sun, a 1,200,000 square foot facility, the need for energy efficiency is paramount. The Aurora Sun facility, located in Medicine Hat, Alberta which receives more than 2,500 hours of sunshine per year, makes a perfect candidate for solar.
SinglePoint, a company with a portfolio that includes mobile payments and ancillary cannabis services, is taking note of such large scale energy requirements having recently announced signing an asset purchase agreement to acquire Direct Solar and AI Live Transfers. The two companies are providing what has been described as ‘the Lending Tree Model for solar business’. With the proposal of The Green New Deal, solar is at the forefront of every conversation and will continue to be top of mind as the nation grows through an ‘energy shift’ to renewable resources.
Total installed US PV capacity is expected to more than double over the next five years, and by 2023 over 14 GW of PV capacity will be installed annually. This represents a major opportunity for SinglePoint and Direct Solar to exponentially grow and establish a leadership role within the new segment of the burgeoning solar industry.
Direct Solar is able to move into every state quickly and efficiently because of the proprietary online education technology the company has developed. SinglePoint plans to utilize this edge to pitch cannabis businesses on the opportunity to save money and increase margins with lowered utility costs through the use of solar.
Liht Cannabis Corp. has focused much more on sustainability, having announced earlier in the month that each of its cultivation facilities in Las Vegas, Nevada have now achieved three organically grown certifications from EnvirOganic, Certified Kind and Clean Green. The Company received its third certification from Clean Green Certified, a program modeled on existing national and international agricultural standards that ensures environmentally clean and sustainable methods, comprised of three parts: legal compliance, review of cultivation methods and agricultural crop inspection.
Liht also announced selecting the innovative Agnetix liquid cooled LED lighting system for its British Columbia, Canada cultivation facilities, including newly announced 486,000 sq. ft of high-tech indoor cultivation facilities.
Using the Agnetix system’s unparalleled power, advanced controls, and monitoring features, Liht expects to improve its yields while saving over 50% on energy costs vs. traditional systems.
“Our cutting-edge facilities draw a tremendous amount of power for lighting and HVAC systems. With the Agnetix system, we expect to see an immediate cost reduction in our energy bill and a more efficient operation,” said Richard Huhn, Director of Liht. “We have also logged very positive plant-health results using these lights and we are excited to start the new grow.”
FSD Pharma Inc. is also showing interest in solar and renewable practices having signed a non-binding letter of intent with Solarvest BioEnergy Inc., in which Solarvest would conduct research using its algal expression technology to develop pharma-grade cannabinoids.
Solarvest plans to develop and carry out a research project using its algal expression system for the purpose of developing a proof of concept that algae can express the Project Cannabinoids..
It seems all too obvious that with the high energy requirements, a strong need for cost efficiency and high yield production and a strong societal link to counter-culture and naturalist views, that the cannabis sector will have to endorse “green tech” sooner rather than later, and early movers like Aurora and SING may have the edge in the what is fast becoming a greener future.