Introduction: Hosts Michael Williamson and Anders Peterson introduce this episode of "Cultivation Elevated" - the episode's focus on airflow mapping and quantification in vertical farming and cannabis production.

Project Example: Michael shares his experience working on a startup project and the importance of commissioning the building and team for airflow optimization, especially in multi-tiered systems.

Airflow and Plant Growth: Anders emphasizes how airflow is a crucial factor in plant growth, acting as a balancing factor for energy, VPD (vapor pressure deficit), and other parameters.

Mapping Airflow:

Michael discusses his approach to airflow mapping using drawings, measurements at consistent elevations, and data quantification for better airflow management.

Anders highlights the benefits of using both direct and indirect methods (airflow sensors and leaf surface temperature readings) to create airflow maps.

Tools and Techniques:

• Discussion on tools like hot-wire anemometers for accurate airflow measurement and why infrared thermometers with adjustable emissivity are needed for proper leaf surface temperature measurements.

Tips for measuring air velocity, spacing, plant height, and using color-coded maps in Excel for easy visual analysis.

Airflow and Yield:

• Poor airflow leads to issues like hotspots, uneven plant growth, and reduced yields.
• Too much airflow can also cause issues like nutrient toxicities or wrinkly leaves.

Optimal Airflow Ranges:

• Optimal airflow for veg and flowering stages discussed, generally ranging from 200 to 300 feet per minute.
• Emphasis on the need to find consistency in airflow distribution across the growing space.

Leaf Surface Temperature:

• The importance of taking leaf surface temperature measurements during the middle of the photo period.
• These readings help monitor plant health and ensure VPD is within acceptable ranges.

Room Design and Commissioning:

• Suggestions on room design planning, including considering airflow distribution and using technologies like CFD (computational fluid dynamics) modeling for precise planning.
• A discussion about retrofitting or designing rooms to maximize airflow and minimize future issues.

New Technology:

• Michael discusses Pipp’s VA S 2.0 airflow system, which provides more control over airflow and energy efficiency, allowing growers to dial in airflow to meet specific needs.

Practical Advice:

• The episode closes with advice on regularly checking airflow, understanding the value of airflow mapping, and recognizing how airflow can impact yield and overall crop quality.

Guest Speakers: Mitch Galton (Director of Business Development) and Brett Cherniack (VP of Sales) from Urban Gro, a company providing integrated design and engineering solutions for controlled environment agriculture (CEA) facilities.

Key Discussion Points:

Urban Grow’s Services:

Specializes in retrofitting existing facilities and energy-efficient solutions for cannabis cultivation and other CEA industries.

• Offers architectural design, cultivation system integration, and equipment commissioning.
• Retrofitting Cannabis Facilities:
  
  • Challenges include assessing existing infrastructure (power, water, and space layout), especially in transitioning non-cannabis buildings.
  • Planning is critical, focusing on utilities, space allocation, and goals before starting a project.
  • Importance of ensuring proper infrastructure (HVAC, lighting) before retrofitting.
    
    • Types of Retrofits:
      
      • Existing cannabis facilities needing upgrades versus non-cannabis facilities being converted.
      • Challenges with distressed assets, where companies failed, requiring complete overhauls.
      • Converting single-level facilities to multi-tiered systems to increase canopy space but requiring significant HVAC and lighting upgrades.
      • Building Selection for Retrofits:
      • Important to consider zoning, local regulations, utility availability, and city support when selecting a building for a retrofit.
      • Delays in power availability can derail timelines and budgets, sometimes taking up to 24 months to get proper utility infrastructure.
• Energy Rebates:
  
  • Significant rebates available for upgrading lighting and HVAC systems, covering up to 100% of the costs in some cases.
  • Utilities have become more knowledgeable about cannabis cultivation and offer tailored energy efficiency programs.
  • Planning ahead for energy rebates can save a company substantial amounts, and waiting for rebate approvals (about 4 weeks) is strongly recommended before making purchases.
• New Cannabis Markets:
  
  • Examples from new states like Alabama and Kentucky show the challenges of being the first to market, such as not having patients or customers yet.
  • Importance of scaling cultivation in phases to match market demand and avoid overbuilding.
  • Challenges in HVAC Rebates:
  • HVAC rebates are more complex to calculate compared to lighting due to constant system usage in cannabis cultivation.
  • Some states are developing more prescriptive rebate programs for dehumidifiers, a major part of HVAC systems in cultivation facilities.
• Closing Thoughts:
  • Both Mitch and Brett emphasize the importance of detailed planning, especially when dealing with capital-intensive retrofits.
  • Urban Gro’s team has extensive experience in cannabis, helping cultivators make smart decisions regarding retrofits, new facilities, and energy rebates.

In this episode of Cultivation Elevated, hosts Michael Williamson and Anders Peterson are joined by Mike Zartarian, an electrical and controlled environment agriculture design engineer and the principal at Zartarian Engineering and Precision AG. With over 20 years of experience as a design engineer and systems architect, Mike brings valuable insights into the complexities of indoor cultivation facilities.

• Mike Zartarian’s Background:
  
  • Mike shares his journey from working as a design engineer to focusing on controlled environment agriculture, including his work in both indoor vegetable production and cannabis cultivation.
  • He co-founded Zartarian Engineering with Mike Siegel and has been instrumental in designing holistic cultivation facilities.
• Challenges in Indoor Cultivation:
  
  • Mike discusses the unique challenges of designing and commissioning indoor cultivation facilities, emphasizing the importance of a holistic approach that considers the entire plant life support system.
  • He highlights the differences between growing cannabis and other crops like lettuce, noting that cannabis is particularly energy-dense and sensitive to environmental variables.
• Commissioning and Tuning Cultivation Facilities:
  
  • The conversation delves into the critical process of commissioning a new facility, which involves ensuring that all systems operate as designed before plants are introduced. Mike stresses that skipping this step can lead to costly mistakes and crop loss.
  • He shares his approach to commissioning, which includes pre-operational testing, sensor placement, and gradually ramping up plant introduction to ensure optimal system performance.
• Sensor Technology and Innovation:
  
  • Mike introduces the new canopy sensor array developed by Zartarian Engineering, which includes an IR sensor to measure leaf surface temperature—a critical factor in accurately calculating VPD (vapor pressure deficit) for cannabis crops.
  • The discussion covers the importance of accurate sensor placement and density, as well as the impact of leaf surface temperature on crop steering and environmental control.
• Best Practices for Cultivation:
  
  • The episode concludes with practical advice for cultivation facility operators, including the need to balance optimization versus maximization in facility design, managing systems and teams effectively, and the importance of commissioning to ensure long-term success.
• Conclusion:
  
  • Mike shares his deep expertise in CEA and indoor cultivation, offering listeners actionable insights into designing, commissioning, and optimizing indoor grow facilities. The hosts emphasize the value of Mike’s approach and suggest a potential follow-up episode to explore additional topics in more depth.

Introduction

◦ Hosts: Michael Williamson and Anders Peterson.

◦ Guest: Ian Miller, CEO of Catalyst BC.

◦ Ian's background includes raising significant private equity, working in various sectors including high-end yachts, and being on the founding team of Loop Pay. • Discussion Topics

◦ Financial Modeling Challenges

▪ Unique challenges in creating financial models for the cannabis industry, such as commoditization and margin compression.

▪ Importance of accurate KPIs and the variability of operator performance.

▪ Impact of regulatory environments and compliance on financial models.

◦ Investor Perspectives

▪ Key factors investors look for in financial models: detail, sobriety of assumptions, and realistic schedules.

▪ Importance of having skin in the game and available resources.

◦ Construction and Operational Challenges

▪ Unique construction challenges in cannabis facilities.

▪ Importance of power availability and realistic project scopes.

▪ Common mistakes: inadequate power planning and underestimating the complexity of projects.

◦ Revenue Projections and Profitability

▪ Critical variables affecting revenue projections and profitability.

▪ Speed to market, talent, capitalization, and achieving KPIs are essential.

▪ Detailed planning and high-quality execution are crucial for maximizing profits.

◦ Emerging Trends and Developments

▪ Shift from equity to debt financing.

▪ Trends in multi-layer horticulture and automation.

▪ Importance of energy cost analysis and life cycle costs.

• Customer Retention and Market Knowledge

◦ Importance of knowing your customer demographic.

◦ Strategies for building customer loyalty and retention.

◦ Examples from retail operations highlighting the significance of customer service.

• Personal Story and Motivation

◦ Ian shares a personal story about his father's experience with medical cannabis.

◦ Emphasizes the impact of cannabis on health and the motivation behind Ian's involvement in the industry.