CO2 GRO Inc (CVE:GROW) (OTCQB:BLONF) (FRA:4021) has announced its first commercial feasibility in Israel with cannabis producer Pharmocann Global Inc to assess its CO2 Delivery Solutions technology.
In a statement Tuesday, the Toronto-based company said that the commercial feasibility will be conducted in part of Pharmocann’s greenhouse for a term of at least six months.
CO2 Delivery Solutions dissolves and saturates carbon dioxide gas into water, creating a bubble-less, aqueous CO2 solution that results in a combination of larger plants and shorter crop grow time.
READ: CO2 GRO initiates a commercial feasibility project of its CO2 Delivery Solutions with a macadamia nursery in South Africa
CO2 Gro told investors that at Pharmocann’s 348,000-square foot facility, CO2 gassing is not feasible as greenhouses require continuous venting. With Delivery Solutions technology, the saturated CO2 misting allows open venting greenhouses to provide more carbon to their plants for enhancing growth.
The company said that the collaboration is hoping to achieve faster growth, increasing bud yield, powdery mildew suppression and lower CO2 energy use and lower overall production costs.
CO2 Grow estimates that these outcomes can help boost revenue for crop growers up to 30%.
"We are very interested to see how much additional value CO2 Delivery Solutions technology will create in our cannabis operation,” Pharmocann’s head of cultivation Asaf Shaked said in a statement.
“Until now we have not been able to utilize CO2 gas given the structure of our greenhouses. The benefits seen with other cannabis growers in Canada makes CO2 Delivery Solutions a very promising and potentially valuable technology to us."
Big opportunity in Israel
The commercial feasibility was sourced by CO2 Gro’s Israeli marketing partner Greenmist Ltd, which will be managing the project with remote assistance from CO2 Gro.
"GROW's revolutionary CO2 Delivery Solutions technology and lack of global competition inspired us to form a new company focused on pursuing the many protected agriculture opportunities available in Israel,” Greenmist’s CEO Uzi Breier said.
Breier estimates that Israel has nearly 1.5 billion square feet of protected agriculture including tunnels, shade houses, net houses, hoop houses and greenhouses outside its cannabis sector.
Aaron Archibald, CO2 Gro’s vice president, sales and strategic alliance called Pharmocann an “ideal customer” as they understand the benefits of additional CO2 for their plants but cannot currently gas due to their greenhouse structure.
“We look forward to working with Greenmist in pursuing additional opportunities in Israel both in the Cannabis market and the larger protected agriculture market,” Archibald added.
CO2 Gro has marketing partnerships covering 14 countries.
Contact Angela at angela@proactiveinvestors.com
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