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INDUSTRIAL HEMPEconomic Toolkit for Industryedmontonindustrial.ca

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Industrial Hemp | Emerging Sector

TABLE OF CONTENTS

WHAT IS INDUSTRIAL HEMP 3Hemp vs Marijuana - Is It Different? 3History 3THE EDMONTON ADVANTAGE 4

ALBERTA HEMP SECTOR 5

INDUSTRIAL HEMP VALUE CHAIN 6

ENVIRONMENTAL BENEFITS 7

RESEARCH, INNOVATION AND 8

COMPETITIVE ADVANTAGE 8

INDUSTRIAL HEMP 9

INVESTMENT TOOLKIT 9

EDMONTON IS SERVICE CENTRE

FOR REGIONAL HEMP GROWTH 10

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Industrial Hemp | Emerging Sector

Edmonton - Invest in Something Extraordinary

WHAT IS INDUSTRIAL HEMP

Industrial hemp refers to the cannabis plants that are grown spe-cifically for industrial uses in textiles, building material and personal care.

Hemp vs Marijuana - Is It Different? Industrial hemp’s tetrahydrocannabinol (THC) level is limited to 0.3% compared to marijuana’s THC level that ranges between 3 - 25%. In contrast, industri-al hemp has a greater concentration of Cannabidiol (CBD), a property that con-tributes to its role in medicinals.

HistoryIndustrial hemp has been cultivated for thousands of years for industrial appli-cation and is considered to be the most hardy of natural fibres and a renewable resource. Use of industrial hemp fell out of favor in the Western world in the ear-ly 20th century. Today, industrial hemp has seen a resurgence in acceptance and evolved to provide an even greater variety of products to market. New fed-eral regulations effective November 21, 2016 support industrial hemp production through a simplified license application process because the plant is considered low risk.

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1 https://www.canada.ca/en/health-canada/corporate/about-health-canada/legislation-guidelines/acts-reg-ulations/service-standards-high-volume-regulatory-authorizations/service-standard-issuance-new-industri-al-hemp-licences.html

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Industrial Hemp | Emerging Sector

THE EDMONTON ADVANTAGE

Edmonton is located in the northern region of Alberta with access to high-quality agricultural lands, long-hours of sunshine and cooler nighttime temperatures. These characteristics are shown to generate 30% greater yield of hemp fibre than southern Alberta locations.

Post-secondary institutions provide access to world-class facilities on crop production, plant processing technologies, agronomic research and application development

Edmonton is regionally positioned to create a Hemp Business Cluster. It’s existing agricultural lands, available industrial zones and access to major rail and road networks can allow it to grow, process, manufacture and distribute products to market.

Such a proposal would allow cluster-based businesses to benefit from massive cost savings in transportation, a concentration and specialized labour force and rapid innovation due to knowledge sharing.

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Industrial Hemp | Emerging Sector

Edmonton - Invest in Something Extraordinary

ALBERTA HEMP SECTOR

One-third of Canada’s Hemp Sector is cultivated in Alberta - one of the world’s most productive agricultural economies• 325 cultivation licenses issued in 2017• 18,803 hectares of production

A viable hemp value-chain is key to increasing the demand for decorticated hemp fibre in this emerging economy Industrial hemp market driven products are diverse for consumption, including:• Hempcrete - for construction• Bioplastic - has several markets• Paper - ecofriendly and sustainable • Phytoremediation - for remediation• Biodiesel - biodiesel feedstock• Cannabidiol (CBD) oil - medicinals

Cannabidiol (CBD Oil) Extraction System

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1 http://rediscoverhemp.com/hemp-eats-chernobyl-waste-offers-hope-for-hunford/

6 Edmonton - Invest in Something Extraordinary

Industrial Hemp | Emerging Sector

INDUSTRIAL HEMP VALUE CHAIN

"The hemp fibre market is emerging in Alberta. There are several companies working on high value market product made from hemp." Lori-Jo GrahamBio-Industrial Opportunities BranchAlberta Agriculture 11

1 http://www.pureadvantage.org/news/2016/09/08/the-hemp-wave/

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Industrial Hemp | Emerging Sector

Edmonton - Invest in Something Extraordinary

ENVIRONMENTAL BENEFITS

Hemp is becoming a viably attractive alter-native to wood, synthetic fibres, and pe-troleum based products. Industrial hemp’s fast growth and significant biomass yield supports efficient land use. As a natural weed suppressant, the hemp plant thrives well against competitors and requires less chemical inputs and water compared to other commercial crops.

Hemp can be useful in carbon sequestra-tion as it yields four times the biomass of an average forest in 90 days compared to 25 years in tree growth. Hemp also can provide a useful break in crop rotation.

Additional environmental benefits:• Root system breaks-up compacted soil• Provides aeration and holds soil firmly

to help control erosion• Can help land remediation for treating

wide variety of environment contami-nants. The plant’s remarkable metabolic absorption capacity can be used to re-move/detoxify soils, sludges or facilitate immobilization of pollutants1.

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1 https://www.researchgate.net/publication/281651509_Phytoremediation_Potential_of_Hemp_Cannabis_sativa_L_Identification_and_Characterization_of_Heavy_Metals_Responsive_Genes 2 http://www.westcentralforage.com/media/1033/hemp-report.pdf

8 Edmonton - Invest in Something Extraordinary

Industrial Hemp | Emerging Sector

RESEARCH, INNOVATION AND COMPETITIVE ADVANTAGE

Edmonton is home to six publicly fund-ed post-secondary institutions supporting industry with highly skilled and motivated workforce.

The University of AlbertaFaculty of Agriculture program areas that can be applied directly to hemp

1. Agrifood and Nutritional Science2. Human Ecology3. Renewable Resources4. Resource Economic & Environmental Sociology

Northern Alberta Institute of TechnologyNAIT’s school of applied sciences and tech-nology diploma programs offer value

1. Nanotechnology2. Environmental Sciences3. Laboratory and Research

Other post-secondary institutions MacEwan University Kings UniversityConcordia University Norquest College

Fueled by Competitive AdvantageEdmonton offers significant competitive advantages. The most tax competitive of all international cities and easy access to resource feedstock and a strong regional customer base. Edmonton is also connect-ed to major export markets and is ranked high in quality of life indexes.

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1http://www.ualberta.ca/agriculture-life-environment-sciences/research/areas-of-research 2http://www.nait.ca/86269.htm 3http://www.competitivealternatives.com/default.aspx

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Industrial Hemp | Emerging Sector

Edmonton - Invest in Something Extraordinary

INDUSTRIAL HEMP INVESTMENT TOOLKIT

Demand for hemp fibre processing is emerg- ing with 10 fibre buyers and 5,000 hectares grown within 100 KM of Edmonton

Nanomaterials derived from hemp can be used as a low-cost feedstock for graphene. Graphene is ideal for use in energy storage electrodes in batteries and super-capacitors1

Edmonton Energy and Technology Park (EETP) zoning strategy for hemp cluster development

Post-secondary institutions have capacity to expand hemp research and development

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Hemp yields strong and sustainable fibres that can be manufactured into high-tech products to service domestic and global demand in a range of industries

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Hemp cannabinoid (CBD) provides major revenue stream. High yield and an established supply chain in Edmonton distribution corridor

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Alberta’s hemp industry is export oriented. Edmonton’s link to global markets and transportation network provides significant access to domestic and international chains

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Location of major research facilities staffed with scientists, engineers and technologists to strengthen and expand products to markets.

• Innotech Alberta• The Canadian Hemp Trade Alliance• Agriculture Research and Extension Council• Alberta Agriculture Programs and Services• Alberta Food Processors Association • Alberta Processing Business Incubator

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1 https://cen.acs.org/articles/91/web/2013/05/Energy-Storing-Nanomaterial-Made-Hemp.html 2 http://www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/bt16406 3 http://www.country-guide.ca/2018/03/02/are-canadas-hemp-acres-poised-for-a-downward-slide-in-2018/52710

EDMONTON IS SERVICE CENTRE FOR REGIONAL HEMP GROWTH

Industrial Hemp Economic Toolkit for Industry. edmontonindustrial.ca