Sometime over the next two years, Stonehedge Inc., a plant research and development company based in Stirling, is slated to build North America's first hemp bio-refinery in eastern Ontario, a $20-million business venture not without its obstacles.
"We haven't received government funding yet, but we do have an application with the federal government for one major envelope of funds. All they're really concerned about is if we have any private sector money invested yet," says John Baker, founder and chairman of Stonehedge Bio Resources Inc.
"Before the government kicks in and starts participating, they want to see somebody that put in real cash. So if they're not at the table as we go forward, that won't be a good sign."
Baker, who envisions whole cities encircled with carbon sequestering hemp crops, has collected an excess of $2-million in private sector investments over the past two years, a major step forward, says Gerrit DeBruyn, executive director at Trenval Business Development Corporation, which has provided Baker with a public sector loan of up to $150,000.
"There's no question it's a high risk loan because the refinery is so out of the box. Hemp cultivation is obviously doing very well in the U.K. and in Germany, but we still have to deal with the North American market," says DeBruyn. "The plan itself is very strong but dependent on a few other investors coming together. With John already getting the private sector dollars, it's a tremendous step forward."
As the global financial crisis razes Ontario's industrial sector, the land is left fallowed with empty factories that can be modified to accommodate Stonehedge's hemp refinery, to be economically plotted within a 100-kilometre proximity of the hemp crops.
"It depends on whether we take an old plant and retrofit it -- there should be lots of used plants around with what's happening in our economy -- or whether we build new," says Baker. "Our number one choice is to build a plant with the material we want to sell, it's just that we can't build with it until we get the plant going, so it's a bit of a problem, unless we import material."
The self-seeding, genetically perfected hemp strain Stonehedge plans on sewing into eastern Ontario's fertile greenbelts is currently contrary to existing Health Canada regulations, says Gordon Schieifele, director of breeding and research programs for the Ontario Hemp Alliance, a non-profit, membership-driven organization representing hemp farmers and stakeholders across Ontario.
"Regulations require that the seed the farmer sows to be pedigreed. This means it's pure seed, and it's of a registered hemp variety, not marijuana or something else," says Schieifele.
"So there would have to be some major regulatory changes to permit the propagation of a feral variety without reseeding it with commercial pedigreed seed. It's a great genetic concept, but at this time, the regulations do not permit that."
Stonehedge's bio-refinery will start by operating eight hours daily, processing seven-tonnes of hemp straw per hour -- a full production rate that will require 15,000 to 17,000 acres of hemp crops, a majority of which will be situated in Northumberland County. After refinery construction is complete, lingering uncertainties within the agricultural community about cultivating hemp are expected to wane considerably, when Stonehedge will begin contracting both large and small acreage farms for planting, cultivating and bailing hemp crops.
"In order to have consonance of the farming community, they have to know that there's a source of payment for their product, that there is a processing facility that's going to accept it," says Dan Borowec, director of economic development and tourism in Northumberland County. "At this time, we're not quite sure when contracting is going to begin. Construction of the refinery is a critical piece of that process."
As a cost-cutting measure, and in an effort to reduce financial burdens on farmers, Stonehedge will provide specialized equipment for harvesting hemp crops at time of their maturity, says Baker.
"We believe this is something that would be attractive because then we don't have to put a huge capital investment out, at least in the early stages — is this going to be here in ten years from now? So at least the farmer is not taking as much risk," Baker said.
Although the global hemp market is budding prosperously, and more industries are choosing greener, more efficient materials to manufacture their products, risk remains a significant, overshadowing factor in the Stonehedge business strategy.
"In any innovation there is an element of risk. However, we've done a significant amount of research to try and ensure there are markets for the product," says Borowec, who is working with Baker to target accessible markets, such as the construction and auto industry, while harnessing hemp's every anatomical component for other marketable products, ranging from insulation, to quilts, to animal bedding. "The dust of the hemp processing can even be pelletized. So, I guess what we've tried to do is spread risk by offering a multiple array of products that could potentially be used in the market place."
Aftermarket hemp-based building products first undergo a process called decortication at the Stonehedge refinery, when machines methodically husk the straw to extract hemp fiber, a stringy, extremely durable material that Baker intends to sell to secondary distributors around North America.
"It might be the automotive sector, which makes bio-plastics and felts behind door panels for insulation, or we might just put an additional line in the plant and make the insulation. Those things are already being used, so there is a market that is already out there for that," says Baker, whose bio-refinery will also utilize hemp hurds, the woody core of the hemp stalk that can be broken down into shavings.
"What we are interested in using the hurds for is in the construction industry as a bio-masonry composite, part of this initiative we are working on with the U.K. called Hemcrete."
Hemcrete, a light concrete prepared with hemp hurd aggregate and lime base binder, is a cost effective, carbon-capturing alternative to conventional masonry products. According to Lime Technology, a U.K. corporation specializing in Hemcrete and other building products derived from renewable resources, it takes 40 tonnes of carbon to produce enough concrete for the walling construction of a standard sized home, whereas Hemcrete locks up carbon in wall construction for 100 years.
"So those are the kinds of things that we see will be the commercial products that we have to tackle to be profitable," says Baker.
Schieifele, who conducted research in Bekkaa Valley, Lebanon, to expand hemp production there, doesn't let the impeccable facts about hemp, a prolific natural resource, go unchallenged.
"There's no data to substantiate carbon sequestration of the hemp as it grows, there are still a lot of questions with regard to the economics, whether it's feasible or not," says Schieifele.
"It's a small volume market, but it's growing, and we assume it's going to be sustainable very easily, but being that it's a new crop being launched, it may not be quite sustainable at this time."
Borowec is somewhat more optimistic, saying, "Certainly, in our mind, it provides opportunity for renewal in terms of employment in what we foresee is a burgeoning industry. Other related industries will spring around that, so I guess we're looking at this as a first step to generating other industries that have significant economic spinoffs."
News Hawk- Ganjarden 420 MAGAZINE ® - Medical Marijuana Publication & Social Networking
Source: Online Pioneer Plus
Author: Cameron Ginn
Contact: Online Pioneer Plus
Copyright: 2009 Online Pioneer Plus
Website: New Hemp Plant First for Eastern Ontario
"We haven't received government funding yet, but we do have an application with the federal government for one major envelope of funds. All they're really concerned about is if we have any private sector money invested yet," says John Baker, founder and chairman of Stonehedge Bio Resources Inc.
"Before the government kicks in and starts participating, they want to see somebody that put in real cash. So if they're not at the table as we go forward, that won't be a good sign."
Baker, who envisions whole cities encircled with carbon sequestering hemp crops, has collected an excess of $2-million in private sector investments over the past two years, a major step forward, says Gerrit DeBruyn, executive director at Trenval Business Development Corporation, which has provided Baker with a public sector loan of up to $150,000.
"There's no question it's a high risk loan because the refinery is so out of the box. Hemp cultivation is obviously doing very well in the U.K. and in Germany, but we still have to deal with the North American market," says DeBruyn. "The plan itself is very strong but dependent on a few other investors coming together. With John already getting the private sector dollars, it's a tremendous step forward."
As the global financial crisis razes Ontario's industrial sector, the land is left fallowed with empty factories that can be modified to accommodate Stonehedge's hemp refinery, to be economically plotted within a 100-kilometre proximity of the hemp crops.
"It depends on whether we take an old plant and retrofit it -- there should be lots of used plants around with what's happening in our economy -- or whether we build new," says Baker. "Our number one choice is to build a plant with the material we want to sell, it's just that we can't build with it until we get the plant going, so it's a bit of a problem, unless we import material."
The self-seeding, genetically perfected hemp strain Stonehedge plans on sewing into eastern Ontario's fertile greenbelts is currently contrary to existing Health Canada regulations, says Gordon Schieifele, director of breeding and research programs for the Ontario Hemp Alliance, a non-profit, membership-driven organization representing hemp farmers and stakeholders across Ontario.
"Regulations require that the seed the farmer sows to be pedigreed. This means it's pure seed, and it's of a registered hemp variety, not marijuana or something else," says Schieifele.
"So there would have to be some major regulatory changes to permit the propagation of a feral variety without reseeding it with commercial pedigreed seed. It's a great genetic concept, but at this time, the regulations do not permit that."
Stonehedge's bio-refinery will start by operating eight hours daily, processing seven-tonnes of hemp straw per hour -- a full production rate that will require 15,000 to 17,000 acres of hemp crops, a majority of which will be situated in Northumberland County. After refinery construction is complete, lingering uncertainties within the agricultural community about cultivating hemp are expected to wane considerably, when Stonehedge will begin contracting both large and small acreage farms for planting, cultivating and bailing hemp crops.
"In order to have consonance of the farming community, they have to know that there's a source of payment for their product, that there is a processing facility that's going to accept it," says Dan Borowec, director of economic development and tourism in Northumberland County. "At this time, we're not quite sure when contracting is going to begin. Construction of the refinery is a critical piece of that process."
As a cost-cutting measure, and in an effort to reduce financial burdens on farmers, Stonehedge will provide specialized equipment for harvesting hemp crops at time of their maturity, says Baker.
"We believe this is something that would be attractive because then we don't have to put a huge capital investment out, at least in the early stages — is this going to be here in ten years from now? So at least the farmer is not taking as much risk," Baker said.
Although the global hemp market is budding prosperously, and more industries are choosing greener, more efficient materials to manufacture their products, risk remains a significant, overshadowing factor in the Stonehedge business strategy.
"In any innovation there is an element of risk. However, we've done a significant amount of research to try and ensure there are markets for the product," says Borowec, who is working with Baker to target accessible markets, such as the construction and auto industry, while harnessing hemp's every anatomical component for other marketable products, ranging from insulation, to quilts, to animal bedding. "The dust of the hemp processing can even be pelletized. So, I guess what we've tried to do is spread risk by offering a multiple array of products that could potentially be used in the market place."
Aftermarket hemp-based building products first undergo a process called decortication at the Stonehedge refinery, when machines methodically husk the straw to extract hemp fiber, a stringy, extremely durable material that Baker intends to sell to secondary distributors around North America.
"It might be the automotive sector, which makes bio-plastics and felts behind door panels for insulation, or we might just put an additional line in the plant and make the insulation. Those things are already being used, so there is a market that is already out there for that," says Baker, whose bio-refinery will also utilize hemp hurds, the woody core of the hemp stalk that can be broken down into shavings.
"What we are interested in using the hurds for is in the construction industry as a bio-masonry composite, part of this initiative we are working on with the U.K. called Hemcrete."
Hemcrete, a light concrete prepared with hemp hurd aggregate and lime base binder, is a cost effective, carbon-capturing alternative to conventional masonry products. According to Lime Technology, a U.K. corporation specializing in Hemcrete and other building products derived from renewable resources, it takes 40 tonnes of carbon to produce enough concrete for the walling construction of a standard sized home, whereas Hemcrete locks up carbon in wall construction for 100 years.
"So those are the kinds of things that we see will be the commercial products that we have to tackle to be profitable," says Baker.
Schieifele, who conducted research in Bekkaa Valley, Lebanon, to expand hemp production there, doesn't let the impeccable facts about hemp, a prolific natural resource, go unchallenged.
"There's no data to substantiate carbon sequestration of the hemp as it grows, there are still a lot of questions with regard to the economics, whether it's feasible or not," says Schieifele.
"It's a small volume market, but it's growing, and we assume it's going to be sustainable very easily, but being that it's a new crop being launched, it may not be quite sustainable at this time."
Borowec is somewhat more optimistic, saying, "Certainly, in our mind, it provides opportunity for renewal in terms of employment in what we foresee is a burgeoning industry. Other related industries will spring around that, so I guess we're looking at this as a first step to generating other industries that have significant economic spinoffs."
News Hawk- Ganjarden 420 MAGAZINE ® - Medical Marijuana Publication & Social Networking
Source: Online Pioneer Plus
Author: Cameron Ginn
Contact: Online Pioneer Plus
Copyright: 2009 Online Pioneer Plus
Website: New Hemp Plant First for Eastern Ontario
