LAVAL, QC, Oct. 16, 2019 /CNW Telbec/ - PRESS RELEASE - Neptune Wellness Solutions Inc. has announced that its Sherbrooke, Quebec facility started to process biomass using its new cold ethanol equipment. The first shipments of cannabis extracts produced with the ethanol equipment are expected in the coming weeks once the final release testing is completed on the first batches that have been extracted. Combined with Neptune's CO2 extraction line, the company's capacity to process biomass is expected to reach an annual run rate of 200,000 kg by the end of November. As indicated previously, Neptune's current capacity, including the phase II expansion, is fully committed to existing clients.
Starting with Phase II and going forward, Neptune has opted for cold ethanol technology, which could be up to five times faster than its CO2 equipment and which consumes up to two times less energy than our CO2 technology. Our cold ethanol process combined with the high level of automation of Neptune's Sherbrooke facility should position the company as a low-cost manufacturer in Canada. Additionally, in recent weeks, it has received additional security clearance from Health Canada for our production personnel which should alleviate operational constraints.
"The Phase II cold ethanol production was completed on budget and is another important milestone in our capacity expansion strategy. We are currently working on Phase IIIa which will bring total annual extraction capacity to 1,500,000 kg. This capacity expansion is necessary to support the execution of Neptune's growth strategy to become a global leader in cannabis extraction and purification while meeting the growing demand from consumers for natural products. With our diverse base of 100-plus customers across North America in multiple verticals, including legal cannabis and hemp, nutraceutical, and consumer packaged goods, Neptune is well positioned to execute on its growth plans," said Michael Cammarata, Neptune's CEO.
