CO2 GRO Inc (TSX-V:GROW, OTCQB:BLONF). has announced a US$30,000 sale of its CO2 Delivery Solutions technology to an Arizona greenhouse grower.
Commercial terms include a payment on order with the balance due upon the completion of the first harvest, the company said in a statement.
The sale is for 10% of the grower's total greenhouse capacity and CO2 GRO anticipates that its technology will be expanded over time to the client's entire greenhouse footprint based on performance in the initial section.
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The company previously announced a feasibility on August 19, 2021, with another Arizona greenhouse. Arizona has the second-largest US greenhouse footprint after California with close to 15 million square feet of vegetable greenhouses.
CO2 GRO noted that nearly all of Arizona's greenhouses have to manage the same problem of close to year-round heat venting -- which results in a chronic lack of sufficient CO2 levels to augment the excellent year-round sunlight that’s available.
The necessity of year-round heat venting in Arizona, the company added, makes it virtually impossible to enhance plant production by up to 30%, which can be achieved in greenhouses located in temperate climates that have the ability to increase CO2 levels in the grow rooms above ambient conditions for at least half the year.
The client has requested its name, crops grown, and greenhouse footprint to be kept confidential for competitive reasons.
"This is yet another direct Commercial Installation sale and the first in the state of Arizona,” said Aaron Archibald, CO2 GRO’s vice president of sales & strategic alliances.
“With only 10% of the client's total greenhouse footprint installed, this presents a significant opportunity to expand the deployment of our CO2 Delivery Solutions technology to the client's remaining 90% greenhouse capacity which could provide significant revenue. We look forward to working with the client, and adding more direct to Commercial Installation sales in the near future."
The Toronto-based company’s CO2 Delivery Solutions technology is revolutionizing the global 600 billion square foot protected agriculture industry. It creates a saturated CO2 solution that when misted onto plants provides growers that cannot gas with CO2 the opportunity to increase plant yields by up to 30% and profits by up to 100%.
Applying saturated CO2 also suppresses the development of pathogens such as E.coli and powdery mildew, helping to reduce crop losses.
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