Should you start a cannabis extraction lab? Here are some tips before you start!

There are over 500 different bioactive compounds in cannabis that can be broken down through an extraction process. It takes place in an extraction laboratory and the end result is the production of marijuana extracts with high concentrations of specific cannabinoids such as CBD or THC with a purity level of around 99%. Marijuana can easily become contaminated with heavy metals, pesticides, residual solvents, or other pollutants, posing a risk to consumer safety and health. Through internal testing, manufacturers can ensure that the marijuana products they send to market are potent and free from all sorts of contaminants.

The cannabis extraction market was valued at US$9.7 billion worldwide in 2020. According to data from Grandview Research, the market size is expected to reach $23.7 billion by 2027 and grow at a CAGR of 16.6%. Although starting a marijuana extraction facility can be expensive, the cost of ownership is low, making it a profitable business in the long run. Here are some crucial factors to consider when running this business.

POSITION

In all countries, the cannabis industry is heavily regulated. It is illegal at the federal level in the United States, so careful site selection is required to prevent encounters with the federal government. In the United States, you must check specific laws for the state you are in. Laws dictate how close an extraction facility can be to a school, children’s park, daycare, residential area, etc. These laws can also define how extractors can be close together and how many can be in an area. Ultimately, you want to make sure that the location you choose is safe, close to resources, and easily accessible.

COMPLY WITH REGULATIONS

A marijuana extraction facility must comply with regulations that affect the manufacturing and production of consumer goods to ensure the safety of end users and workers is maintained. Here are some important ones:

cGMP (current Good Manufacturing Practices): This is a regulatory standard imposed by the FDA. It defines the manufacture, implementation and compliance with manufacturing processes to achieve the safety and quality threshold. The use of technology and some other systems by the manufacturers is necessary to ensure the effectiveness and safety of the product. Marijuana extraction facilities should be certified by GMP for conducting transnational business and for operational standardization.

The National Fire Protection Association (NFPA): warns that the combustible materials used in extraction laboratories are easily ignited by flames. The not-for-profit NFPA has developed standards and guidelines to reduce the number of fire accidents that result in injury, death and financial loss. To avoid accidental fires, the standard specifies how laboratories should be organized and how flammable liquids should be delivered.

Local Fire Codes are a set of codes that must be followed to prevent fires in all commercial and industrial buildings. They consist in having access to and using it properly; Extension cords, smoke alarms, fire extinguishers, fire signage, emergency exits, fire collection points, fire detectors, sprinkler heads and pipes. Below are some important fire safety regulations that should be implemented in a cannabis extraction facility:

NFPA 30: The National Code for Flammable and Combustible Liquids

NFPA 58: The LPG Code

NFPA 45: Fire safety for laboratories that use chemicals

NFPA 1: The Fire Safety Handbook

NFPA 70: The National Electrical Code.

OSHA (Occupational Standards for Health and Safety): Federal law requires marijuana extraction facilities to comply with OSHA occupational safety and health standards, particularly those related to chemical and biological substances to which laboratory workers may be exposed on the job. For all chemicals, OSHA Standard 29CFR1910.1200 requires laboratories to have a written Hazard Safety Standard, and this standard must be available to all employees at all times. All hazardous substances must be listed on a laboratory’s inventory and all associated information must be recorded on a Safety Data Sheet (SDS).

PERSONNEL MANAGEMENT

Employees working in the laboratory must practice all hazards in the facility and be provided with first aid in the event of an accident. Personnel must sign that they have received appropriate training.

WASTE MANAGEMENT

Plant clippings, extraction chemical residues, discarded samples, and other residues left at an extraction facility all constitute cannabis waste. Waste must be classified into hazardous or non-hazardous categories and disposed of properly. In order to prevent the waste from being mixed up, the laboratory must take measures to ensure that waste is separated appropriately.

WORKER SAFETY

In a mining facility, occupational safety is of the utmost importance and should be determined by the nature of the hazards each employee faces in the course of their job. For this reason, it is important to conduct a Workplace Hazard Analysis (JHA) to identify potential hazards to which workers may be exposed and to establish preventive actions.

EQUIPMENT MANAGEMENT AND SELECTION

Depending on the type of extraction and the volume of the extraction, cannabis extraction equipment can cost anywhere from $5,000 to $100,000. When choosing, you need to consider the performance, economy, and end product of the equipment. An extraction laboratory should only use equipment listed by Underwriters Laboratories (UL listed). To ensure optimal effectiveness and production, avoid accidents and reduce wear and tear, equipment also needs routine maintenance. This can only be achieved with certification from the National Recognized Testing Laboratory (NRTL).

SUPPLY CHAIN ​​MANAGEMENT

Managing your supply chain refers to disciplined oversight of the entire process to ensure effectiveness, reduce waste, and increase production and profitability. This involves monitoring the raw materials from the moment they are delivered to the extraction facility until the cannabis extracts are available. To support the supply chain management in an extraction plant, a laboratory information management system (LIMS) makes sense.

FINAL EFFECT

Cannabis extraction is one of the many sub-sectors in the fast-growing cannabis industry. If you’re looking to jump into extraction, the few points discussed above should give you a lot of guidance to start with and give you a good foundation.

EXTRACTION LAB, READ MORE…

EXTRACTION AND INFUSION LABORATORIES WHAT YOU CAN LEARN NOW!