A proposal from a Regina entrepreneur adds to the growing list of plans to process hemp in Western Canada for industrial purposes.
After two years of research and development, Thomas Chevalier said he hopes to set up a plant by the end of this year in Gilbert Plains, Man., producing biomass briquettes from hemp straw.
His business, IMBH, is currently a finalist in the Saskatchewan Business Challenge, a program for start-up businesses.
“What I did is I drove around all of Canada. I went to industry events. I went to conferences, and that’s kind of how I got my feet wet,” he said.
“I saw what was in the market and I saw what was missing.”
Chevalier also plans to produce a hemp product targeting bioplastics.
Once operating, Chevalier said he intends to process 3,000 to 5,000 tonnes of hemp straw per year,
which would come from 1,400 to 1,500 acres of the crop bought from nearby growers.
He said growers will receive $90 to $100 per tonne for the straw.
“Right now they’re burning it. You can’t feed hemp straw to your cattle. They’re basically stuck with the straw,” he said.
“You need to get it off the ground. What we’re doing is getting farmers to swath and bale it. You store it on your farm, we’ll pick it up on a monthly basis and we’ll pay you for that.”
Farmers planted 67,000 acres of hemp in Canada last year. Most of it was grown for seed under contracts with two major hemp seed companies in Manitoba that make food products. Hemp exports from Canada are already worth tens of millions of dollars.
Several other industrial fibre projects have been announced in Western Canada.
Plains Industrial Hemp Processing has set up shop in Manitoba, while Stemia and Cylab International have announced plans to operate facilities in Alberta.
Chevalier said he is interested in eventually working with growers in Saskatchewan, but processing is more cost effective in areas where growers are consolidated.
“There are more hemp growers in a closer proximity (in Manitoba),” he said.
“The seed varieties are a little more adapted to their conditions and environment. When we took the straw samples, we found more consistency with theirs than out here (in Saskatchewan). I think it’s because out here there’s a lot of clay, unless you go up north. That’s where you’ll find the best hemp straw, in my opinion.”
Hemp produced for seed comes from shorter varieties, but cultivars exist to produce taller plants intended for fibre processing.
“We’re not asking growers to change what they’re doing now,” he said. “All we’re doing is buying the straw that’s left over from seed production.”
The federal health department regulates hemp production in Canada, which has drawn criticism from industry officials. Growers must be licensed by the federal regulator to buy certified seed.
“As long as Health Canada regulates the hemp industry, I don’t think we’re going to see the big boom we’re hoping to see,” Chevalier said.
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