Maximizing ROI with CO2 enrichment in existing greenhouses

For commercial cannabis cultivators, integrating CO2 enrichment into an existing greenhouse can significantly enhance yields and profitability. Without CO2 optimization, cultivators potentially miss out on increased CO2 plant growth, which may lead to reduced production and hence lost revenue. "We have recently worked on a cannabis project where we retrofitted an existing greenhouse with a CO2 enrichment system," says David Goodnack from PlantCO2. "Per the grower's request – but also as a standard procedure for us – we have assessed the ROI of the upgrade. The ROI numbers quickly convinced the grower that installing the CO2 system was worth it, not only because the ROI was basically of a little over 2 weeks, but also for the increase in the operation efficiency the CO2 enrichment system provided."

The greenhouse in question spanned over 80,000 sqft, with a flower space of 60,000 sqft and the remainder two vegetative rooms, 8,000 sqft each. The CO2 system installed has 12 tons of liquid CO2 storage, with PlantCO2 enrichment equipment and distribution kits for precise dispersion. Important to point out was the CO2 safety system which ensures compliance with safety regulations.

The installation of the system required a 6-inch thick concrete pad for two 6-ton CO2 tanks. A CO2 vaporizer,due to the high flowrates, where power had to run to the CO2 tank. Copper piping had to be routed from the tanks through the vaporizer, the regulator, and then into the greenhouse. A safety system was also designed to keep all occupants safe, a requirement anytime an occupied space is enriched with CO2. To take care of all of that, the estimated investment was $180,000. The CO2 enrichment and safety equipment went for $120,000, the installation $60,000, and the monthly rental of the CO2 supply and tank $7,500. So, considering all of that, what was the ROI in this situation?

Revenue gains with CO2 enrichment
"The greenhouse owners estimated that without CO2, they were losing $90,000 per week in potential revenue due to suboptimal CO2 plant growth. By implementing CO2 optimization, they could immediately boost yields and revenue." A more precise breakdown of the payback period would show that the system would bring an additional $360,000 revenue per month, in light of $7,500 monthly operational cost, meaning that the net monthly increase would be of $352,500.

Long-term profitability
"Over a full year, the potential additional revenue can be quite significant," the team points out. "The additional annual revenue could go up to $4.32M, with CO2 operational costs in the region of $90,000 with an annual net profit increase of $4.32M." The main conclusion here is that the CO2 system paid for itself in just over 2 weeks. On top of that, it keeps on driving CO2 optimization, increasing yield efficiency and profitability. You might think that adding a CO2 system would add complexity to operations, however it's a very simple and reliable system. The CO2 tanks have telemetry to monitor the CO2 remaining and automatically dispatch supply trucks and the CO2 manifolds are automated to hold CO2 levels to the growers preference throughout the day," David remarked.

"For any commercial cultivation facility currently not using CO2 enrichment, the ROI case is clear: failing to optimize CO2 plant growth means leaving significant revenue on the table. Investing in bulk CO2 supply and a well-designed CO2 optimization system leads to rapid returns and long-term profitability.By integrating indoor farming CO2 systems, cultivators can maximize yields, improve quality, and significantly increase their bottom line."