Hemp Heat

Wood Pellet / Coal Substitutes

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Most of the hemp boom investment has been focused on one output: CBD products. eHempHouse has chosen to look at other industrial hemp products and their market potential. Rather than entering into cutthroat competition for customers, we have chosen to first focus on the more approachable wood pellet market.

The global wood pellet market was valued at $10.5B in 2019, and expected to grow to $23.6B by 2025, according to several market research sources. A 2019 review by USA Today found that there are more than 400 farmers growing 18,000 acres of hemp across the state. In the US and Canada, the amount of acreage licensed to grow hemp is a staggering 465,787 acres. All of those CBD hemp farmers are cutting just the tops off of the plants, leaving the rest, which is thought of as waste. There are tons and tons of it accumulating every day.

For Many Farmers, Hemp Fiber is Just Waste

Andy Neal with Hemp Waste

We estimate that one SmartBox™ truck or container can process ~250 acres of that hemp waste in one growing season. One acre can yield as much as 10 tons of hemp pellets, which could translate $150-300 per bagged ton.

Our processor’s primary input would be the waste product from thousands of acres of CBD hemp production. Farmers might even pay to have it removed, but in any case it would be turning a low cost resource into a sought after product.

eHempHouse is planning to provide the units to farmers, initially for a lease payment and percentage of sales. This will be followed later by the development of a more structured franchise opportunity.

Fuel Pellets for Heating

Pellet Market

Growth expected in wood pellet market

The global wood pellet market was valued at $10.5B in 2019, and expected to grow to $23.6B by 2025, according to several market research sources. A 2019 review by USA Today found that there are more than 400 farmers growing 18,000 acres of hemp across the state. In the US and Canada, the amount of acreage licensed to grow hemp is a staggering 465,787 acres. 

Coal Needs a Replacement

Smokestack from coal plant | Smithsonian Ocean

The number of coal-fired power plants is shrinking. Yet, we can repurpose those plants if a cleaner burning and renewable fuel source can be found.

In 2019 there were 241 coal-fired power plants in the United States. These plants accounted for 23% of all the electricity generated nationally and consumed 537 million short tons of coal to generate roughly 236 GW. That amount of coal cost on average $38.53 per ton or $20B for 2019.

Replacing that 23% with renewable energy would require the construction of new facilities with an astronomical price tag. Instead, replacing coal with a cleaner burning and renewable fuel source could give those existing plants a new lease on life. This would also give cash-strapped municipalities a more economical choice.

Hemp Makes More Sense than Wood

Hemp side of Hemp vs Wood
Wood side of Hemp vs Wood

A Viable Replacement for Coal

Hemp is a Viable Replacement for Coal
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