Australia Finds Similar Power Problems with the Advent of the Marijuana Industry

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Indoor gardening and urban indoor farming methods are still facing the power consumption problem. Australia is a place where the marijuana industry is new. They are not sure how much power is being consumed there making the product. They are also unsure how much of it is legal and how much is illegal.

Key Takeaways:

  • The article mentions that Australia has no idea how big the power draw is from producing marijuana.
  • They cannot specifically place the power draw just on marijuana either because people have started to grow crops indoors as well.
  • Australia is struggling to keep up while also moving toward renewable energy sources at the same time.

Quote: “There is no data on how much power cannabis growers in Australia are using. The only estimate is from a Deloitte Access Economics study from 2016, which placed indoor cultivation electricity consumption at $8.9m a year across the industry which had 2,291sqm under cultivation.” (Williamson, 2020)

Link to article:
https://stockhead.com.au/food-agriculture/indoor-farming-is-great-until-the-power-bill-is-delivered/

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Two Perth Based Growing Companies Hope to Buck Trend

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Emerald Clinics raised 8 million dollars and Little Green Pharma had a $10 million initial public offering which spurred them on to begin trading next week on ASX. The industry, however, as a whole has been down. There is too much supply and legislation has proceeded slowly compared to what people thought would happen. Other companies that are listed in the same industry have shrunk to a fraction of what they were worth initially.

Key Takeaways:

  • Emerald Clinics and Little Green Pharma are set to enter the ASX next week.
  • The market has not been kind to medical marijuana growing companies. Companies that entered the market three years ago are significantly worth less than their initial stock prices.
  • Some people within the industry believe this shrinkage is due to the fact that the product has not been pushed as a serious medicine.

Quote: “Dr Winlow told AAP that companies have been putting too much effort into growing pot and not enough into proving the drug is a safe and effective medicine.” (Rose, 2020)

Link to article:

https://7news.com.au/business/ipos/two-perth-cannabis-floats-set-to-green-asx-c-691905

Photo from:

https://images.7news.com.au/publication/C-691905/42c9231493afede374e3929f7ae10db46a8c604a-16×9-x112y45w1151h648.jpg?imwidth=650&impolicy=sevennews_v2 (AAP)

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