CleanSpark to study feasibility of cannabis farm power system

US microgrid company CleanSpark Inc (OTCMKTS:CLSK) said on Wednesday it will be conducting a feasibility study for an off-grid power system, combining software controls, solar and storage capacity, for a cannabis farm in rural California.

Local utility companies could not commit to providing service in a timeframe that would suit the plans of the cannabis grower because of the remote location of the farm, Zach Bradford, President of CleanSpark, explained, adding that this is a common challenge for large, power-hungry cannabis operations.

“By going off-grid with an alternative energy system, this customer will be able to create an independent energy infrastructure that directly meets their needs, greatly reduces their dependence on traditional energy sources and can scale as their business grows,” Bradford continued.

The feasibility study is for the first phase of the customer's project. It will focus on a solar photovoltaic (PV)-plus-storage system and assess the capital costs and utility savings, operations and maintenance (O&M) costs, the return on investment, cash flows and tax effects.

CleanSpark expects to be given the opportunity to install the system, resulting in "in excess of six figures in revenue". The company is eyeing more projects as the cannabis industry continues to mature.

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