Green and Gold

As the sun rose over the mud hut homes of our ancient ancestors’ goods were traded.  Cows for grains, tools for drinks.  When there was more trading than a single person could account for they created writing, then math.  Today the sun still rises over a bright future of commerce, and in California it has never been so historic.

A crop that predates written history is making its resurgence right along side a new form of conceptual currency.  The future and the past are married in new economic opportunities for business owners and entrepreneurs on the west coast.  Legalized cannabis as a cash crop and cryptocurrency mining are two of the hottest trends for new and old businesses alike and the two make a good team up.

With the walls of regulation falling down cannabis is opening to smart businesses.   With local dispensaries always looking for well marketed products to sell small independent growers create unique breeds and blends mirroring the success of the microbrewery trends in the early 2000’s.  Proven market and a similar demographic create a map to success.

Small urban farms can focus on quality grow, and premium content, not on mass production. Utilizing the same business instincts and the local brew house, businesses can hybrid brands with existing intellectual properties.   Cannabis isn’t the only emerging business.

Crypt-currency has rocked the world with its fast gains and magical success.   The truth of the matter is that even though it wont skyrocket anytime soon that its ever increasing stability and encroachment into standard markets marks it as the newest edge on business.  Crypt-mining is the turnkey for new entrepreneurs.

Crypt-mines, privately owned data centers that focus on earning coins, can’t be built anywhere.  Efficient power, air and temperature control, and alternative energy access need to be in place if a mine is going to profit.   One of the best places to build a mine, interestingly, is near or attached to an Urban Farm.  Both would share initial investments in alternative power, air conditioning, power load adaptation.  Crypt-mines generate a lot of heat that can vent into the farm, they use water cooled systems that can be bypasses from hydroponic pools, and both can benefit from water harvesting.

The sun never sets on business, from the mud huts and clay tablets, to the modern crypto-mines and cannabis farms, there is always a place for trend setting, smart, entrepreneurs.  We are more than commercial electricians we install the future.

The total amount of water that is received in the form of rainfall over an area is called the rainwater endowment of the area. Out of this, the amount that can be effectively harvested is called the water harvesting potential.

Water harvesting potential = Rainfall (mm) x Collection efficiency

The collection efficiency accounts for the fact that all the rainwater falling over an area cannot be effectively harvested, because of evaporation, spillage etc. Factors like runoff coefficient and the first-flush wastage are taken into account when estimated the collection efficiency.

The following is an illustrative theoretical calculation that highlights the enormous potential for water harvesting. The same procedure can be applied to get the potential for any plot of land or rooftop area, using rainfall data for that area..

Consider your own building with a flat terrace area of 100 sq m. Assume the average annual rainfall in your area is approximately 600 mm (24 inches). In simple terms, this means that if the terrace floor is assumed to be impermeable, and all the rain that falls on it is retained without evaporation, then, in one year, there will be rainwater on the terrace floor to a height of 600 mm.

1. Area of plot = 100 sq. m. (120 square yards)
2. Height of the rainfall = 0.6 m (600 mm or 24 inches)
3. Volume of rainfall over the plot = Area of plot x height of rainfall
4. Assuming that only 60 per cent of the total rainfall is effectively harvested
5. Volume of water harvested = 36,000 litres (60,000 litres x 0.6)

This volume is about twice the annual drinking water requirement of a 5-member family. The average daily drinking water requirement per person is 10 liters.

From http://www.rainwaterharvesting.org/whatiswh.htm

Hydroponics is a subset of hydroculture, the method of growing plants without soil, using mineral nutrient solutions in a water solvent. Terrestrial plants may be grown with only their roots exposed to the mineral solution, or the roots may be supported by an inert medium, such as perlite or gravel. The nutrients in hydroponics can come from an array of different sources; these can include but are not limited to byproduct from fish waste, duck manure, or commercial fertilisers.

Cannabis strains are either pure or hybrid varieties of the plant genus Cannabis, which encompasses the species C. sativa, C. indica and C. ruderalis.

Varieties are developed to intensify specific characteristics of the plant, or to differentiate the strain for the purposes of marketing or to make it more effective as a drug. Variety names are typically chosen by their growers, and often reflect properties of the plant such as taste, color, smell, or the origin of the variety. Cannabis strains commonly refer to those varieties with recreational and medicinal use. These varieties have been cultivated to contain a high percentage of cannabinoids. Several varieties of Cannabis, known as hemp, have a very low cannabinoid content, and are instead grown for their fiber and seed.

Cannabis can be grown indoors in a soil-like medium under artificial light, adding fertilizer when the plants are given water. Cultivating cannabis indoors is more complicated and expensive than growing outdoors, but it allows the cultivator complete control over the growing environment. Plants of any type can be grown faster indoors than out due to 24-hour light, additional atmospheric CO₂, and controlled humidity which allows freer CO₂ respiration.

Plants can also be grown indoors through the use of hydroponics.

To grow plants indoors, a growing medium (e.g. soil or growing substrate), water, nutrients, light and air need to be supplied to the plant (with the exception of aeroponic cultivation, in which case a growing medium is not required)

Cryptocurrency and Investment

Cannabis is the new frontier of entrepreneurship.  Like all explorations there are innate dangers.  In the case of urban farms investors are the only options.  Banks shy away as Federal Law causes excessive complications.  The only answer is Angel Investors, those who put their own personal money on the line.

Cash commerce isn’t the only way to go.  In some situations, there are investors and buyers who want to keep anonymity in their dealings.  Whatever their reason, cryptocurrency allows for the transfer of funds and anonymity.

No two products have every matched up so well.   Together with our partners at Cannafornia Construction and Consulting, we can assist with everything from efficient grow-op design, to conceptual and schematic engineering services, overseeing various permitting processes, and retrofitting or building your ground-up operation.

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Check out these investor organizations

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Hydro Efficiency Between Farm and Mine.

Other unique systems involve integration with irrigation or hydroponic systems to regulate water temperature and keep the miners cool. Both aforementioned cryptocurrency applications reduce overhead as the gains in mining can offset energy costs.

California has relaxed water harvesting laws allowing for reduced cost of water intake. Depending on your property you might be able to replace up to 60% of your water needs.

Hydroponics vs Soil; The Dirty Facts

Hydroponics is hardly new technology.  The concept has been around since the middle ages, but recently with water pump efficiency, solid understanding of nutrient mixtures, and better solar and power options, hydroponics has become a powerful option to soil.

In situations where there is limited space or raw acreage, smaller areas can easily use vertical space to multiply the crop yields.  It takes less manpower, gives greater control of expenditures and costs, and when combined with water harvesting or recycling creates a boon for public relations.

Cryptocurrency in the Cannabis World               Get an Evaluation

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Hydroponics video

Water Harvesting regulations

Solar system installations, with rebates, and subsidy, can reduce the residual costs of operating an urban industrial farm. As California moves towards Grid Parity, the price of solar is now comparable to that of fossil fuels.  Combined with discounted set ups from state and local districts, the cost of the system is absorbed by the annual savings.  The challenge is to find a property that has good solar coverage and strong power capacity.

We typically see systems roof mounted, but depending on the location and available space panels can be placed in a variety of space efficient, and sun facing surfaces.  Solar isn’t an option anymore its now a solution.

Returning power to the grid can, not only reduce your cost, but have the power company paying you.  In many industrial situations, the amount of solar coverage can be profitable.   All properties will have different solar coverage and power load restraints.

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Grid Parity

Local Rebates

SMUDS Excess Energy

Commercial cannabis operations have minimum energy supply infrastructure needs of 4000 amps, which rival small factories and industrial operations. These infrastructure upgrades are quite costly, as are the monthly utility bills.

These costs have been a mounting concern within the cannabis industry as energy expenditure has quickly become the most significant source of overhead within the world of cultivation. Additionally, energy rates from Investor Owned Utilities, like Pacific Gas & Electric, San Diego Gas & Electric, and Southern California Edison, have rates that increase on nearly a yearly basis.

To make matters worse, contemplated California Legislation would require cannabis cultivators to offset a minimum of 42% of energy consumption with renewable energy. While this would assist in lowering monthly utility costs, and generally be better for the environment, the upfront capital cost of these infrastructure upgrades would squeeze small and mid-size operations.  Fortunately, there are ways to work within and around these problems.

Solar Power as a Solution                        Hydroponics and Water Harvesting.

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Local power rates

Proposed Regulations

Property Evaluation

The first hurdle to overcome is power at the site. Not all properties can handle the power load, and those that can may not be up to code. Each property has its own unique circumstances and requires an evaluation focused on the end goal.  In the case of a grow-house, with electric power being the largest regular investment, alternative power sources, heating and pumping are usually needed. Water is also a difficult challenge to some properties and its costs can be off set by water harvesting in some cases.

Finding the right location is more than just power.  State and local governments have a series of rules and regulations that must be maintained when growing controlled crops.  Specific security and safety requirements must be recognized in the selection of an area.  Water availability, use, and Sacramento City regulations, are all issues that arise from the location and age of the structure.  Absolut and  Cannafornia Construction and Consulting are up to date on all permits and regulations that must be filed and we’re here to advise you on current or potential properties.

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Local Regulations

Many businesses are looking into the development of cryptomining.  This new industry has been very profitable for up-and-comers trying to ride the wave of technology.  As bitcoin and similar currency begin to reshape the world a new partner to this business is walking in right beside.

Legalized marijuana is a year-round cash crop with demand for specialized breeds. With increased need for CBD oils the plant is quickly becoming a booming industry. It sits precariously between Federal and State regulations creating unique challenges to investors. Cryptocurrency, and legalized cannabis are natural business partners as they share many of the same investor and buyer demographics. It’s more than whose buying and whose investing.

Bitcoin mining needs power supplementation, heat exchange, and mechanical cooling. Cannabis, needs power supplementation, temperature regulation, and hydro mechanical systems.   Peas in a pod.

During the cold season mining operations vent warm air and in the summer both can share climate control with limited air conditioning and water-cooling evaporators.  Additionally, cannabis operations and distributors use cryptocurrency when federal backing is not available.

Overcoming the Challenges                    How Much Power does it Take?