CO2 GRO Inc (TSX-V:GROW, OTCQB:BLONF) has announced the sale of its first CO2 Delivery Solution in the state of Tennessee to a hemp grower.
The Toronto-based company said that the installation will be in a new indoor grow facility that will be expanded over time.
CO2 GRO told its investors that its new customer has extensive experience employing atmospheric CO2 enrichment to enhance crop yields. While CO2 gassing does provide a significant improvement to hemp crop yields in an indoor environment, the volume and attendant cost of CO2 gas required are not inconsequential.
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"As we continue to penetrate high potential geographic and plant vertical markets, we are seeing a growing awareness of CO2 GRO's CO2 Delivery Solutions technology,” Darla Lanphear, North America Sales Manager for CO2 GRO said in a statement. “Potential customers are increasingly understanding that direct purchases of commercial systems will immediately start bringing significant benefits to them."
The company’s delivery solutions technology can save the customer up to 90% of CO2 gas usage and costs while achieving yield targets and increasing profitability. In addition, the customer will benefit from CO2 Delivery Solutions Pathogen Perimeter Protection which suppresses the development of powdery mildew on plants, improving overall production.
Tennessee is one of a number of US states that are promoting hemp farming for CBD, with laws that require hemp plants to contain no more than 0.3% THC. This change was spurred by the federal legalization of hemp and hemp-derived products in the 2018 Farm Bill.
According to a recent report from Fortune Business Insights, the US CBD market is expected to grow to $55 billion in 2028 from $3.6 billion in 2021, registering an annual growth rate of 47%.
"This customer reached out to us after extensively researching options for providing additional CO2 to their hemp plants grown indoors. After reviewing our science and speaking to other customers currently using our technology, the customer decided to purchase the system without a feasibility,” Aaron Archibald VP sales and strategic alliances said in a statement.
He added: “The customer's research and subsequent purchase confirms the many benefits our CO2 Delivery Solutions technology can provide to growers worldwide, whether they currently employ CO2 gassing or not."
GRO creates a dissolved 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%.
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