Hemp, Inc. issued an update to draw light to the fact that the hemp bill that replaced Senate Bill 313 could put the production of industrial hemp another step closer to legalization in North Carolina. According to an article by The News & Observer, “Hemp Farming Gets Support from NC House Panel” posted yesterday, “if the bill gets through the House and Senate, an appointed N.C. Industrial Hemp Commission would oversee a pilot program.”
According to the article, the appointed commission “would grant applications for hemp farming and coordinate research projects with N.C. State and N.C. A&T Universities.” Notably, in February of last year, President Obama signed the Farm Bill into law, which defines industrial hemp as distinct and authorizes universities or state agriculture departments to conduct research and pilot programs.
North Carolina’s hemp bill, if it passes the House and Senate, would allow for hemp farming in the state. Representative Jeff Collins, sponsor of the legislation, believes North Carolina would be the perfect location for hemp cultivation because his district is home to one of five decorticators in the world. “The Spring Hope facility will give North Carolina farmers a leg up in this industry,” Collins said.
Hemp, Inc. executives also reported today that its multipurpose industrial hemp processing plant in Spring Hope, North Carolina is now 80% complete. German engineer, Jens Kleinert of Temafa Machines, the manufacturer of Hemp, Inc.’s decortication machine, says he was quite surprised that it was able to be installed in such a short amount of time. This is Kleinert’s third time visiting the plant to monitor the re-installation and has since derived a list of final tasks that need to be done.
The processing plant continues to be prepped for maximum operational efficiency. An electrical contractor is currently on site assembling the electrical wiring. Thus far, fifty percent of the wiring has already been laid in the cable trays.
Last Thursday, Schmitt met with an airflow engineering company from Atlanta, Georgia. The airflow engineer spent two days at the processing facility helping to engineer the duct work for the Temafa decortication line. An order is being placed this week for the first phase of the duct work. Once the materials arrive on site (normally within 2 weeks of placing an order), the installation can begin.
While Hemp, Inc. executives expect the plant to be fully operational before the end of the fourth quarter of 2015, there unexpected delays could occur. “It has, overall, taken longer than expected. The National Electrical Code (NEC) changed in 2011, thus requiring a disconnect or ‘cut-off’ unit to be located on the outside of the facility,” said Schmitt.
Typically, power is run underground from the poles to the transformer directly to the switchgear inside the building. However, in the event of an emergency such as a fire inside, NEC now requires that a disconnect unit be placed outside of the facility so that first responders can shut down the power prior to entering the facility. The disconnect serves as a median between the transformer and the switchgear.
That NEC code change caused an 8-week delay because the disconnect unit had to be custom built. The delay before that was the forty-three new poles, spanning 1 1/2 miles down the street, that had to be installed in order to run the 480-volt 3-phase power. This was another unanticipated delay. But none-the-less, those delays are behind us now and the company is moving full speed ahead. “We are almost ready to hit the ‘on’ switch and get this up and running,” said Schmitt. Executives are also informing the shareholders that while they expect to stay on target with the completion time before the end of the fourth quarter, another unexpected delay may push that completion time into the first quarter of 2016.
Bruce Perlowin, CEO of Hemp, Inc., said, “Our hemp processing plant is the first and only commercial factory to be built in the United States in almost a century. We have been meticulously building the infrastructure to be able to vertically integrate growing, decortication, and milling and this is no small feat. We aim to spark a new clean green American Agricultural and Industrial Hemp Revolution for the American farmers and hemp product manufacturers. The infrastructure, now being put in place, will also have an astounding effect on the economy, all due to the revival of industrial hemp.”
The fact that hemp is not yet legal in North Carolina played no role in setting up shop in North Carolina. Executives say the company will process kenaf as soon as the decortication machinery is operational. “We expect it to produce millions of dollars in revenue a year just from processing kenaf, which is legal and also very lucrative,” said Perlowin.
From hemp historian John Dvorak’s research, in 1619, it was illegal not to grow hemp in Jamestown, Virginia because it was one of the country’s most valuable resources. Colonists were ordered to grow 100 plants specifically for fiber export. States actually encouraged hemp cultivation. However, marijuana prohibition and the dominance of the cotton industry set in. Today, Americans want to take advantage of the lucrative hemp cash crop.
HempX, the family-friendly free event held a few days ago, is one event of many that is educating Americans on the importance of hemp. HempX sought to educate both young and old about the multiple uses and benefits of industrial hemp. Bruce Perlowin, CEO of Hemp, Inc., David Schmitt, COO of Industrial Hemp Manufacturing, LLC, and, Philip Boyer, Director of Operations all attended the HempX event in Asheville, North Carolina.
Perlowin, Schmitt and Boyer met with Kevin Hodge, founder of Hemp Adobe Homes to discuss pouring the foundation pad for Hemp, Inc.’s 12-foot by 60-foot tall silo on the grounds of the processing facility. The silo, when filled, will weigh over 100,000 pounds. Hodge says hemp adobe will be a great option for the foundation material because it is more structural as opposed to hempcrete.
When asked the difference between hempcrete and hemp adobe in the latest video update, Hodge said hemp adobe is a refractory (a substance resistant to heat) made of magnesium. Magnesium, coupled with hemp, makes a very structural substance, whereas hempcrete is more of an insulator. Hemp Adobe Homes is in the process of giving Industrial Hemp Manufacturing, LLC a quote for the project. The foundation pad needs to be completed within 60 days.
Perlowin also met with Brian Bullman, Managing Member of Carolina Canna Distributors, LLC, during HempX. His entire staff was at their booth selling Hemp, Inc.’s cosmeceuticals, along with other hemp products and their line of energy drinks (CannaEnergy). Hemp, Inc. and Carolina Canna Distributors solidified a new distributorship agreement which will put Hemp, Inc.’s products in as many of their 400 store channels of distribution, as possible. Perlowin also met with John Agar, North Carolina representative from District 115. “He was amazed and surprised at the scope of the project taking place in Spring Hope. Being a farmer, he was very receptive to moving the ball forward in legalizing hemp in D.C.”
For more information, visit www.hempinc.com
Let us hear your thoughts: Hemp, Inc. Message Board
