CO₂ has a reputation problem. While the excess CO₂ drives the deepening climate emergency, it also plays a vital role in industries like food production, beverage manufacturing, and, accelerating plant growth and crop yield in vertical farms and greenhouses—including cannabis cultivation.

As cannabis growers expand operations amid growing global legalization, CO₂ is a critical resource to meet this booming demand. But it doesn’t come without its challenges. Most cannabis growers are now relying on fossil fuel based CO₂, delivered in tanks and canisters, to hit their desired PPM levels. However, the supply of liquid CO₂ is limited, and cannabis growers compete with other large corporations and industries for consistent deliveries. To make matters worse, the onerous contracts given by gas suppliers are unfavorable and restrictive as a result.

Seven-year contracts with 12-month cancellation notice and ability to declare force majeure at any time are a standard practice. And this is just the tip of the iceberg. Gas suppliers also retain the right to increase the prices, with no price ceiling, with just 15 days notice. Growers lucky enough to secure a better deal during this short window might retain their original price or get a matching offer - but often get stuck with automatic contract renewals for another seven years. Long-term lock-in contracts reduce growers' flexibility and make it difficult to adapt to changing CO₂ rates, ultimately cutting into their profitability.

Both - the unpredictable CO₂ supply and staggering gas contracts - are further accentuated by the hustle of cyclical canister exchanges and associated rental, maintenance, repair, and labor costs cannabis cultivators have to take into account in their planning.

The Macro View of Global CO₂ Shortage

On top of these contract challenges, cannabis cultivators are grappling with a global CO₂ shortage. The Southeast of the US is currently in the throes of an acute CO₂ shortage, worsened by the temporary shutdown of a critical CO₂ supply plant in Virginia. The Hopewell plant maintenance, scheduled for Q4, is expected to disrupt the supply for up to eight weeks.

Across the Atlantic, the UK faces similar issues, primarily due to disruptions in the domestic production of ammonia (a key CO₂ source) due to high gas prices, which is the key component for ammonia production. CO₂ availability in the UK has dropped by 40%-60%, with prices spiking by up to 300% compared to pre-pandemic levels. Meanwhile, in the rest of Europe, a combination of high gas prices, regional conflicts, and plant shutdowns has created ripples across industries, especially in horticulture.

CO₂ shortages are sending ripple effects hitting cannabis cultivators hard. Prices are volatile and supplies are unpredictable. However, there is a ready-made solution that is being deployed on a global scale.

Direct Air Capture: The New CO₂ Solution for Cannabis Growers

Direct Air Capture (DAC) enables growers to capture CO₂ directly from the air, onsite, offering a reliable and consistent CO₂ supply. This insulates cannabis cultivators from the fluctuations and uncertainties of traditional CO₂ markets. Here’s how it works. Everything starts by large fans pulling in ambient air, which then passes through a filter, trapping the CO₂ on its surface. The captured CO₂ is then transferred to a buffer tank. From there, the CO₂ is delivered directly to the facility’s distribution system, ready to be deployed.

The potential of DAC is twofold: it not only provides an independent and cost-stable source of CO₂ onsite, opening an alternative option to unfavorable lengthy contracts with gas suppliers, but it also helps mitigate climate change by reducing the amount of CO₂ in the atmosphere. This dual benefit makes DAC an ideal solution for cannabis growers, vertical farms, and greenhouses alike.

How Direct Air Capture Pumps Up Cannabis Yields

No Contracts

By transitioning away from fossil fuel based CO₂ to circular CO₂ supply through DAC, cannabis cultivators can break free from lengthy and restrictive gas supplier contracts. DAC empowers them to gain full sovereignty over their CO₂ production, giving them the flexibility to meet the exact needs of their greenhouse or vertical farm.

Predictable pricing

With disruptions and shortages turbulently shaking up the global CO₂ marketplace, DAC offers a piece of mind. By eliminating dependence on external suppliers, growers no longer have to worry about market-driven price hikes cutting into their profits. Onsite DAC solution provides the luxury of consistent, fixed prices for years to come.

Reliable supply

The trend of the recent years showed that not only did the CO₂ costs rise, but the supply chain is unable to satiate the current demand. Growers often face shortages due to large corporations claiming priority access. When this happens in peak growing season, it can have a serious impact on the crop yield. With DAC, cannabis growers have control over when and how much CO₂ they produce—independent of market conditions—ensuring a stable, reliable supply year-round.

The Future of Cannabis Cultivation Is in the Air

While the legalized cannabis industry is still maturing, there is enormous potential for a lasting partnership between cultivators and DAC technology providers like Skytree. With the ongoing challenges growers face with CO₂ shortages and restrictive gas supplier contracts, Direct Air Capture can provide a solution, ensuring a profitable long-term success of the cannabis industry.

By partnering with Skytree, cannabis growers can unlock the benefits of reliable, predictable, contract-free CO₂, leading to higher yields and more profitable operations as legalization continues to expand globally.

Understanding the lack of readily available capital in the cannabis industry, Skytree offers two pricing schemes to suit the specific needs and restrictions of every grower.

1. Purchase
2. Leasing

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