Australia’s largest medicinal cannabis grow by area is set to be developed in northern Tasmania as part of a project announced by ECS Botanics.
Subject to finalisation of regulatory approvals, ECS intends to proceed with development of the outdoor medicinal cannabis project at its wholly owned site in northern Tasmania.
The Company has received town planning approval from local council for the development at which it has the potential to grow up to 32,500kg of dry flower per year, as part of an initial three stage expansion plan.
In year 1, ECS will grow medicinal CBD plants before broadening the strategy from year 2 onwards to grow both CBD and THC plants.
"The cultivation is going to be outdoor," ECS managing director Alex Keach says. "We are going to get seeds overseas, let them germinate and plant the seedlings in the field directly."
The particularly ideal conditions of the Tasmanian land and weather makes it perfect for cannabis cultivation. "Rather than recreating the ideal environment, we harness it in Tasmania."
Architects aerial view of stage 1
The Company and its contractors are pushing toward a target of having the facility built and permitted in time for the December 2020 planting window. Early stage site works have commenced, and parts of the build are expected to be underway in the next two weeks, subject to no COVID related delays. ECS is also currently in discussions regarding an offtake agreement for its Stage 1 of scheduled dry flower production.
The Company is fully funded for Stage 1 following its recent capital raising activities in addition to existing business revenues, with future stages to be funded by other capital sources currently being investigated.
“ECS is taking a next generation approach to medicinal cannabis. We know the plant thrives in its natural environment and we see how the regulatory industry, market environment and cultivation practices are evolving overseas. Tasmania has learnt a lot in cultivating pharmaceutical ingredients outdoors and also in the extraction of these plants. Applying a similar framework to the medicinal cannabis industry is the most practical way forward in order to lower the cost of production per gram and make patient access more affordable. We are pleased to have a good working relationship with regulators and many other key stakeholders, which is enabling us to advance this project in a timely manner.
Site plan and artist rendition of ECS medicinal cannabis processing site
“We believe the power prices and cost of labour in Australia are in many cases restrictive to the business case of growing indoor long term, so we are adopting a practical approach whereby we are applying our skills in growing cannabis with a vision of where the industry is headed and how the industry is already evolving overseas.”
Tasmania is a globally dominant power in the cultivation and extraction of plant-based pharmaceuticals, with its low risk cool climate and high amounts of UV enabling production of high value, premium quality crops at a very low cost. Tasmania is already Australia’s largest hemp producer as well as being the world’s largest licit opiate poppy producer and a major producer of essential oils and other high value crops.
"Tasmania is a no gmo state," Alex further explains. "This is also part of our culture, and what will allow us to grow the most consistent and safe cannabis." The Australian-grown brand is renowned globally for the quality of its produce. Similarly, ECS Botanics wants to promote the Tasmanian-grown brand, so that it gets recognized as a guarantee of highest quality. "We want to be pushing the Austrlian-grown and Tasmanian-grown brands in the world," Alex concludes.
The Medicinal Cannabis Project is subject to a license variation being granted by the Office of Drug Control (ODC), and a subsequent permit being issued. ECS applied for this variation in April 2020 and is working closely with the ODC on this front.
For more information:
ECS Botanics
Suite 2, Level 15, 3 Spring Street, Sydney, NSW, 2000
+61 419 323 059
[email protected]
ecsbotanics.com.au