There is a distinct aroma wafting through the offices of Bayou City Hemp, where the skunky odor of cannabis mixes with the sweet smell of optimism.
One of the first and largest hemp processing plants in Texas, the two-year-old company is planting the seed for a legal cannabis industry its founders say is sure to come. Until then, Bayou City is focusing on clean forms of extraction of cannabidiol CBD oils from the hemp plant, turning it into items such as edible gummies, drinkable mixers and inhaleable vape pens. Products it manufactures can put you to sleep, ease your pain and even get you high.
Ben Meggs and Jeromy Sherman were friends and colleagues working in the oil and gas industry before forming Bayou City Hemp in 2019. The business is meant to fill a void in the budding Texas market regulators legalized the industry in 2019 as a way to help farmers squeezed by Americas trade war with China. Once they started planting and harvesting, the farmers needed a place to process the raw hemp.
On HoustonChronicle.com: Hemp or marijuana? After a year in the dark, Harris County prosecutors will finally know.
We saw the bottleneck in the industry was going to be on the processing side, Sherman said. We created the company we couldnt find.
House Bill 1325, enacted two years ago, made it legal to manufacture, distribute and sell consumable hemp products in Texas in an emerging industry now regulated by the Texas Department of State Health Services. The legislation followed passage of the federal Farm Bill in December 2018, which redefined hemp as a low-THC cannabis product with (0.3 percent or less THC) and removed it from the definition of marijuana in the Control Substances Act.
While by law hemp differs from its cousin marijuana by THC content they are the same species of cannabis plant nature often doesnt draw a clear line. If hemp grows to be too high in THC, federal regulators require it be destroyed.
The legalization of hemp ushered in a new wave of production and brought an end to a gray area in which retailers had previously operated. Hemp is now used as an ingredient in everything from drink mixers to shampoo. Trade publication Hemp Industry Daily projects retail hemp sales in the U.S. will reach $3.9 billion this year, an increase of $1.6 billion over last year. Retail sales are expected to reach nearly $6.3 billion in 2022.
But farmers have so far struggled to launch the crop in Texas, where the climate differs from that of northern states from which they order seeds.
Last summers harvest was the first in Texas, and since then Bayou City has processed hemp from a half-dozen farmers and expects to add to that list as more figure out better seed sourcing and how to grow under Texas conditions.
Bayou City Hemp employee Cameron Gonzales uses the CO2 extractor to pull oil from the hemp plant on Thursday, June 24, 2021, in Houston.Bayou City Hemp is one of the largest hemp manufacturing outposts to launch since Texas legalized hemp in 2019. Founding executives left the oil and gas industry after the bill passed and got into the growing CBD industry.
Self-funded, and with investments from friends and family (they declined to say just how much), Sherman and Meggs brought on Karen Trotter, who previously worked financing oil and gas startups as the companys chief financial officer to make sure they had the capital they needed to hit the ground running. More than two dozen people now work at the company, ranging from chemists and equipment operators to marketing and accounting professionals.
The partners started outfitting their Park Row lab last summer and started seeing product in September. Were still in startup mode, Trotter said.
To that end, Bayou City is helping Texas farmers source more successful seeds, advising them on how to grow and helping them with testing in addition to the eventual extraction and processing.
Theres no playbook for this, Sherman said.
Its an industry that didnt exist before, Meggs said.
Texas hemp farmers have struggled so far to yield full harvests, citing poor seed genetics and issues with insects and mold. Hemp prices also crashed in 2019 as farmers clamored to plant the newly legal cash crop and overproduction reigned.
Texas Inc.: Get the best of business news sent directly to your inbox
The bottom fell out as soon as we were ready to go to market, said Scott Meiers, co-owner and president Texas Premium Hemp Producers in Brenham.
Meiers, a cattle farmer, said he almost gave up on hemp last year because it was so challenging to grow and difficult to make a profit. His mind changed when he saw how CBD gummies helped his nephew, who is autistic and, until that point, nonverbal.
He came up and patted me on the back and said, Good job while I was barbecuing, Meiers recalled. I about cried. It really, really changed his life.
When Meiers decided to give it another go, Bayou City Hemp helped him better source his seeds and supplied him with hemp products to sell on the farm to help make ends meet until he could sell his own hemp. Meiers said he expected to harvest his first crop next month.
Calvin Trostle, an agronomist with Texas A&M, said in a recent university publication the hemp industry in Texas will take time to research and perfect. And costs will need to come down in order for it to take off as a cash crop.
As an alternative crop, the hemp industry in Texas is still in its infancy, Trostle said. There is a massive amount of education going on, but were still trying to determine what varieties are adaptive so that we can help producers avoid headaches.
Bayou City Hemp CFO Karen Trotter opens the rotary evaporator, which creates winterized extracted hemp oil, during a tour of their facilities on Thursday, June 24, 2021, in Houston.Bayou City Hemp is one of the largest hemp manufacturing outposts to launch since Texas legalized hemp in 2019. Founding executives left the oil and gas industry after the bill passed and got into the growing CBD industry.
When it came to building the lab, Sherman and Meggs said they took the high road, outfitting it according to the good manufacturing practices standard in the medical industry and creating an internal system that scans and tracks every batch of CBD oil it creates.
We wanted to plan for FDA regulation, said Sherman, who recruited an extraction expert with 40 years of experience with Dow Chemical to be chief operating officer as well as a general manager with more than a decade of experience in cannabis extraction in other states.
Bayou City also opted to use a carbon dioxide process as a cleaner way to extract hemp oil from the plant. Less expensive ethanol-based methods used in the industry yield hazardous waste, they said, while extracting with carbon dioxide leaves behind plant matter still high in protein that research pending may be used as cattle feed.
Our COO uses it in his garden and he says his broccoli has never been bigger, Trotter said.
Extracting CBD oils from the hemp plant is a multi-step process. The first is removing stems from the hemp flower and putting it through a grinder, yielding a fine powder. Then, staff at Bayou City heat it to activate the cannabinoids inside, readying them for extraction.
Fats and waxes get separated in the lab, resulting in an oil they then distill three times to increase potency and remove impurities, ending up with a purity of around 80 percent. In a reactor room, they prepare an isolate that is 99 percent pure.
For those that prefer some THC in their CBD, they leave it in, labeling it as a full-spectrum oil. For others, they remove it and label it a broad-spectrum oil. Some want the cannabis-like effects, so they convert it to what is known as delta-8 THC, an intoxicating molecule similar to the THC in marijuana but with a different atomic structure.
On HoustonChronicle.com: Largest-yet expansion of Texas medical marijuana program advances in Legislature
Kristen Nichols, editor of Hemp Industry Daily, said delta-8 appears to bind less readily to cannabinoid receptors in the brain, producing milder results than the type of THC that is illegal federally and regulated only by state cannabis laws.
Nichols said she at first considered delta-8 a cheap knock-off, a loophole people are exploiting.
I have since had my mind changed, she said. There are folks who want an in-between.
Full cannabis extraction would be a welcome pivot for the business, Meggs said, as the product is less expensive to work with and they can sell it for about three times more than CBD. But first, Texas needs to go the route of its neighbors and legalize it.
Were excited for that day, Meggs said. But for now, were living in CBD world.
Twitter.com/amandadrane
Excerpt from:
Massive Houston hemp facility has its eyes on a cannabis-infused future - Houston Chronicle
- Oregon Mom Treated Teen Daughter's Liver Cancer with CBD Oil, Gets 90 Days in Jail - PEOPLE - March 2nd, 2024 [March 2nd, 2024]
- This CBD business's Amish CEO wants to make Lancaster a hemp haven - The Philadelphia Inquirer - March 2nd, 2024 [March 2nd, 2024]
- Companies Were Big on CBD. Not Anymore. - The New York Times - March 2nd, 2024 [March 2nd, 2024]
- Mom who treated daughter's cancer with CBD oil instead of chemo, surgery gets 90 days in jail - CTV News - March 2nd, 2024 [March 2nd, 2024]
- Oregon mom Christine Dixon who tried to treat teen daughter's cancer with CBD oil is sentenced to 90 days in p - Daily Mail - March 2nd, 2024 [March 2nd, 2024]
- Mom who treated daughters cancer with CBD oil instead of chemo, surgery gets 90 days in jail - KCTV 5 - March 2nd, 2024 [March 2nd, 2024]
- Oregon mom who treated daughters cancer with CBD oil instead of chemo, surgery gets 90 days in jail - Fox 12 Oregon - March 2nd, 2024 [March 2nd, 2024]
- Mom who treated daughters cancer with CBD oil instead of chemo, surgery gets 90 days in jail - KGNS - March 2nd, 2024 [March 2nd, 2024]
- 10 Best CBD Oils Of March 2024 Forbes Health - Forbes - March 2nd, 2024 [March 2nd, 2024]
- Mother treats daughter's liver cancer with CBD oil - FOX 26 Houston - March 2nd, 2024 [March 2nd, 2024]
- Mom who gave daughter CBD oil for cancer treatment sentenced - KGW.com - March 2nd, 2024 [March 2nd, 2024]
- Cannabis oil found to be effective treatment for canine discoid lupus erythematosus - Phys.org - March 2nd, 2024 [March 2nd, 2024]
- Mother treats daughter's liver cancer with CBD oil - Yahoo News - March 2nd, 2024 [March 2nd, 2024]
- Oregon Mom Is Now Going to Jail After Treating Young Daughter's Liver Cancer With CBD Oil - CafeMom - March 2nd, 2024 [March 2nd, 2024]
- Best CBD Tinctures for 2024 - Healthline - March 2nd, 2024 [March 2nd, 2024]
- Peak 8 CBD Gummies Reviews (Dr Oz Bliss Bites CBD Gummies THC) Hoax Or Real Peak 8 CBD Must Read & Where To Buy Peak 8? - The Week - March 2nd, 2024 [March 2nd, 2024]
- CBD and cycling: significant performance claims, but proceed with caution - CyclingWeekly - March 2nd, 2024 [March 2nd, 2024]
- Top 4 Benefits of Using CBD Oil - Emagazine.com - E/The Environmental Magazine - February 27th, 2024 [February 27th, 2024]
- The Top 8 CBD Brands of 2024: Tested by Healthline Editors - Healthline - February 27th, 2024 [February 27th, 2024]
- Florida CBD retailers worry statewide hemp legislation will crush them - Business Observer - February 27th, 2024 [February 27th, 2024]
- FIVE Palm Jumeirah has launched a CBD oil massage: here's what it's like... - What's On Dubai - February 27th, 2024 [February 27th, 2024]
- Slim CBD - Cannabis is increasingly used in weight management and fitness-related products - Trend Hunter - February 27th, 2024 [February 27th, 2024]
- What is full-spectrum CBD? Benefits, types, uses, and risks - TravelDailyNews International - TravelDailyNews International - February 27th, 2024 [February 27th, 2024]
- Greenville CBD retailers are clearing shelves amid crackdown on hemp products with THC - Greenville News - February 27th, 2024 [February 27th, 2024]
- 10 Best CBD Capsules For 2024 Forbes Health - Forbes - February 27th, 2024 [February 27th, 2024]
- CBD Store vs. CBD Dispensary : Which One is Better? - Qrius - February 27th, 2024 [February 27th, 2024]
- Curing Pets With Cannabis as Veterinarians Try CBD and THC - The New York Times - February 9th, 2024 [February 9th, 2024]
- Danish dog owners are medicating their pets with unlicensed cannabis products is it safe? - The Conversation - February 9th, 2024 [February 9th, 2024]
- Long-term CBD for dogs caused few health problems - PetfoodIndustry.com - February 9th, 2024 [February 9th, 2024]
- CBD Oil Market to grow by USD 5.36 billion from 2022 to 2027; Aurora Cannabis Inc. and BIOTA Biosciences LLC ... - PR Newswire - February 9th, 2024 [February 9th, 2024]
- Medallion Green CBD Gummies Reviews: Legit Shark Tank CBD Official? - Deccan Herald - February 9th, 2024 [February 9th, 2024]
- 10 Best CBD Creams Of 2024 Forbes Health - Forbes - February 9th, 2024 [February 9th, 2024]
- Is CBD Bedding Legit Or Just A Gimmick? The Experts And I Weigh In - Forbes - February 9th, 2024 [February 9th, 2024]
- Companies can't say Delta-9 is in their food or drinks in SC | Business - The Post and Courier - January 27th, 2024 [January 27th, 2024]
- Global CBD Consumer Health Market Analysis & Forecast 2024-2034: Government Reforms and Growing Awareness ... - GlobeNewswire - January 27th, 2024 [January 27th, 2024]
- More people are using CBD products. There's still little research on the benefits and risks - KPRC Click2Houston - December 16th, 2023 [December 16th, 2023]
- Naternal Review: Are These CBD Gummies & Oils Worth It? - mindbodygreen - December 16th, 2023 [December 16th, 2023]
- Pet Wellness Redefined: The Benefits of CBD Oil - Orange Fizz - December 16th, 2023 [December 16th, 2023]
- 6 CBD Oils for Joint Pain and Arthritis - Healthline - December 16th, 2023 [December 16th, 2023]
- 7 Best CBD Tinctures for Inflammation in 2023 - Healthline - December 16th, 2023 [December 16th, 2023]
- Vigor Vita CBD Gummies Reviews Beware! Is It Legit? - Carolina Huddle - December 16th, 2023 [December 16th, 2023]
- Green Vibe CBD Gummies Reviews SCAM EXPOSED in Real Consumer GreenVibe CBD Gummies Reports - Carolina Huddle - December 16th, 2023 [December 16th, 2023]
- Global CBD Market to Hit $36B Over Next Decade, Report Predicts - High Times - December 16th, 2023 [December 16th, 2023]
- Top 6 CBD Edibles to Buy Online in 2023 - Washington City Paper - December 16th, 2023 [December 16th, 2023]
- Cbd Products Fda Best Place To Buy Cbd Oil Gummies - University of New Haven - December 12th, 2023 [December 12th, 2023]
- Harmony Leaf CBD Gummies Review: Shocking Scam to Avoid or Legit Gummy? - Bellevue Reporter - December 12th, 2023 [December 12th, 2023]
- 14 Best CBD Lube and Arousal Gel Options of 2024 - Cosmopolitan - December 12th, 2023 [December 12th, 2023]
- Pain Relief Cbd Athlete - Choose the University of New Haven - University of New Haven - December 12th, 2023 [December 12th, 2023]
- Revive CBD Gummies Reviewed - Serious Warning Before Buy! | Vashon-Maury Island Beachcomber - Vashon-Maury Island Beachcomber - December 12th, 2023 [December 12th, 2023]
- When is the best time to take cbd oil in 2023? - DISCOVER Magazine - August 26th, 2023 [August 26th, 2023]
- Reasons For The Evolvement Of CBD Vape Oil In Modern Times - chimpreports.com - August 26th, 2023 [August 26th, 2023]
- Analyzing CBD studies: Health concerns, health claims, populations ... - Nutritional Outlook - August 26th, 2023 [August 26th, 2023]
- USDA Doubles The Number Of Hemp Professionals Serving On ... - Marijuana Moment - August 26th, 2023 [August 26th, 2023]
- I was a National Champion with the Florida Gators and played in NFL now I run my own CBD oil business... - The US Sun - August 26th, 2023 [August 26th, 2023]
- The ABCs of CBD: Cannabinoids in Dermatology and Skin Care - Dermatology Times - August 26th, 2023 [August 26th, 2023]
- Exploring the Connection: Does CBD Help with Depression and How? - babyboomers.com - August 26th, 2023 [August 26th, 2023]
- Hulk Hogan reveals why he quit drinking alcohol - Yahoo Eurosport UK - August 26th, 2023 [August 26th, 2023]
- Best Male Enhancement Gummies 2023: Compare the Top-Rated ... - Kirkland Reporter - August 26th, 2023 [August 26th, 2023]
- 'We are all we have': CBD business struggles - The Bay's News First - SunLive - August 26th, 2023 [August 26th, 2023]
- 8 Best CBD Oils For Cats With Anxiety - mindbodygreen - June 20th, 2023 [June 20th, 2023]
- CBD Oil Market to Reach USD 55,791.3 Million by 2028 | With - GlobeNewswire - June 20th, 2023 [June 20th, 2023]
- Using TLC-MS for the Direct Analysis of CBD - AZoM - June 20th, 2023 [June 20th, 2023]
- Cornbread Hemp Organic CBD Gummies Review - BusinessMole - June 20th, 2023 [June 20th, 2023]
- Revenant's Heaterz Infused Pre-rolls launching at all SWADE ... - Greenway - June 20th, 2023 [June 20th, 2023]
- Three people arrested and 400 cannabis plants seized at ... - The Isle of Thanet News - June 20th, 2023 [June 20th, 2023]
- Maya Jama in Bathing Suit Shares a Special Selfie - Celebwell - June 20th, 2023 [June 20th, 2023]
- ABSTRAX Releases White Paper That Details Its Role in Keeping ... - PR Web - June 20th, 2023 [June 20th, 2023]
- CBD For Inflammation: Does It Really Work? Forbes Health - Forbes - May 18th, 2023 [May 18th, 2023]
- CBDfx Review: We Tested 5 Top Products, Expert Reviewed | mindbodygreen - mindbodygreen - May 18th, 2023 [May 18th, 2023]
- 5 Benefits of CBD, According To Research & Experts - mindbodygreen - May 18th, 2023 [May 18th, 2023]
- CBD Oil Market size, Witness Highest Growth in near future by 2030 ... - Cottonwood Holladay Journal - May 18th, 2023 [May 18th, 2023]
- As Seen On TV: Fusion CBD Products Are Appearing On The Big ... - Herb.co - May 18th, 2023 [May 18th, 2023]
- An "Explosion" Of CBD Awesomeness, Or Just Another Dud ... - LA Weekly - May 18th, 2023 [May 18th, 2023]
- Foria Lube Is Offering 30% Off for Its May Masturbation Sale - VICE - May 18th, 2023 [May 18th, 2023]
- Cartel Blue, Inc. Announces Upcoming Events on Roadshow ... - Digital Journal - May 18th, 2023 [May 18th, 2023]
- Bill signed by Tennessee governor sets new regulations on Delta-8, Delta-10 - WATN - Local 24 - May 18th, 2023 [May 18th, 2023]
- Anti-vaping legislation introduced in Alabama Legislature - The ... - Greenville Advocate - May 18th, 2023 [May 18th, 2023]
- River Oaks Treatment Center Warns of the Dangers of Delta-8 ... - StreetInsider.com - May 18th, 2023 [May 18th, 2023]
- Hand & Stone Opens New Location In Oak Creeks Drexel Town Square - Patch - May 18th, 2023 [May 18th, 2023]
- How Should A Beginner Use CBD Hemp Flower For Optimal Results? - City Watch - May 18th, 2023 [May 18th, 2023]