- Hemp biomass production is anticipated to continue to increase due to legislative changes and the growing demand for CBD products
- At the same time, the industry is experiencing an extraction bottleneck due to the limited industry capacity for efficient biomass processing
- With its proprietary hemp biomass extraction technology that reduces operating costs while delivering superior results, HTC Extraction Systems is uniquely positioned to take advantage of upcoming market opportunities
Legislative changes and a rapidly increasing demand for CBD products paint a highly optimistic picture for hemp biomass production and extraction companies. Currently, the demand for hemp biomass is exceptionally high, and it is anticipated to remain at such levels through the end of 2019 and into the year to come, reports suggest (http://ibn.fm/HoOoL).
The trend started with the passage of the Federal Farm Bill at the end of 2018. This new regulatory framework enabled the legal growth of hemp and also boosted interest in products derived from hemp biomass. In 2018, industrial hemp cultivation started growing exponentially (http://ibn.fm/CCfFq). Farmers cultivated three times as many acres of hemp during that year as compared to 2017. Legal hemp cultivation reached 78,000 acres, marking a massive increase from approximately 10,000 acres in 2016.
Even more pronounced growth is anticipated in the years to come, with the hemp-derived CBD market being set to reach a volume of $22 billion by 2022. This market expansion has already begun, and higher product demand requires proven extraction and purification technologies.
At the same time, the hemp biomass processing power of the market is limited. The industry is experiencing a bottleneck due to the fact that, until present, hemp post-harvest processing facilities were a somewhat neglected part of the supply chain. Since the hemp biomass processing industry is still young and growing, many entities lack the equipment needed to scale up effectively and quickly.
Such market dynamics and forecasts for the future create opportunities for well-positioned hemp biomass processing entities like HTC Extraction Systems (TSX.V: HTC).
HTC Extraction Systems has developed a proprietary biomass processing methodology. The process occurs in three stages – pre-oil preparation, oil extraction and purification and oil refinement. The result of this technology is 50 percent crude CBD oil that can be subjected to further distillation to produce full spectrum oil and/or pure CBD isolate.
The company has signed numerous strategic agreements that maximize its hemp biomass processing potential. Recently, HTC announced its entry into an identity preserved (“IDP”) hemp biomass production tolling agreement. The agreement covers 4,200 to 5,000 acres of hemp in Saskatchewan, Canada. Based on the agreement, HTC will process five million kilograms of IDP hemp biomass to produce full spectrum oil and/or pure CBD isolate.
The company is in negotiations for an additional 5,000 acres for the 2019 crop and up to 30,000 acres IDP hemp production for the 2020 crop.
HTC Extraction Systems develops proprietary extraction and purification systems. The company’s proprietary technologies are engineered to large-scale to reduce capital and operating costs while delivering superior performance.
For more information, visit the company’s website at www.HTCExtraction.com
NOTE TO INVESTORS: The latest news and updates relating to HTC are available in the company’s newsroom at http://ibn.fm/HTC