TROY — Officials of Precision Extraction Solutions, a provider of cannabis and hemp extraction technology, announced the company had been named the exclusive equipment supplier of Canapar S.r.L. for the development and outfitting of its flagship extraction plant in Sicily.
On the heels of a $20 million round of funding that included a lead investment by Canopy Rivers Inc. (TSXV: RIV), the corporate venture capital platform of Smiths Falls, Ontario-based Canopy Growth Corp. (TSX: WEED, NYSE: CGC), a global leader in the cannabis sector, Canapar engaged Precision for the design and manufacturing of an industrial scale hemp extraction plant.
“The KPD series extraction plant represents the newest and most innovative extraction technology in the marketplace,” Precision CTO Nick Tennant said in a press release. “We are excited to see this revolutionary and automated cGMP solution at Canapar’s state-of-the-art facility.”
The Precision KPD Series is a scalable solution for industrial and agri-processing demands ranging from 2,200 pounds to more than 100,000 pounds of hemp input material a day.
Canapar’s Ragusa, Sicily facility, outfitted with a KPD series extraction plant, is expected to produce CBD extracts and isolate, which will then be used for a wide range of health and beauty, cosmetics, pharmaceutical, and veterinary products.
“We chose Precision as our extraction technology partner because they are the most recognized and innovative extraction equipment company in the world,” Canapar CEO Sergio Martines said. “They are assisting us in all aspects of the project from facility design to equipment and training. With Precision’s help, the aim is to optimize the extraction process for the production of the world’s finest CBD isolate for the cosmetic and pharmaceutical market.”
The cGMP-compliant Ragusa facility is initially expected to be able to process over 600 tons of hemp biomass per year, making it the largest extraction plant in the European Union. With Precision’s assistance, Canapar is planning on scaling its operation within the next 12-18 months to keep up with projected demand.
According to Marc Beginin, CEO of Precision: “We are thrilled to be working with the professionals at Canapar. Canapar is poised to be the leading CBD isolate provider in Europe. They asked us to produce a scalable extraction plant with speed-to-market top of mind. Our team will be ready to deliver the first phase in Sicily this summer.”
The market for hemp extraction solutions to produce CBD isolate is growing rapidly. “Indeed, the market is robust,” says Beginin, “with the passage of the 2018 Farm Bill in the U.S., and increased legality of hemp-derived products worldwide, it is estimated that the market for hemp extracts will grow to $22 billion by 2020.”