Aurora says production still on schedule

By Collin Gallant on October 19, 2018.

cgallant@medicinehatnews.com @CollinGallant

The plan to build the world’s largest cannabis greenhouse in Medicine Hat is proceeding according to plan, says the chief corporate officer of Aurora Cannabis, citing an ambitious timetable of about 16 months from public announcement to first planting.

The entire facility — equal in footprint to 21 football fields, capable of growing 150 tonnes per year — will be completed in portions, but will be wholly done by the end of 2019, according to Cam Battley.

“It’s on track,” Battley told the News on Thursday. “We’re putting in screw-piles (for foundation) right now, the steel is being shipped to establish the frame and you’re going to see a lot more workers at the site by the beginning of 2019.”

Five excavators were working on the site on Thursday, and adjacent roadbuilding is well advanced by a local land developer to construct Box Springs Way, northwest of the Canalta Centre.

This week the News cited the company’s recent annual report stating a completion date of later 2019, but noted that differed somewhat from remarks made at the project’s unveiling.

At the time, in April 2018, Aurora CEO and board chair Terry Booth said he envisioned having an initial crop coming off by February 2019.

A firmer timetable was included in a follow-up press release, with the difference explained partly by the “modular” nature of the facility that will be partially in service while the rest is being completed.

“That’s the process,” said Battley. “We won’t wait to have the facility 100 per cent complete before we begin operations.”

That’s how the company has brought its huge, new greenhouse near Leduc along into production.

That 800,000 square-foot growing space, known as Aurora Sky, began cultivation earlier this year while construction continued. Health Canada licensing followed, and on Thursday, Aurora received its federal sales licence for the facility.

It can produce 100,000 kilograms of dried flower annually at a cost of about $1 per gram, according to the company.

The sales licence comes as recreational marijuana use was legalized across Canada on Thursday.

The Aurora Sun project would measure 1.2 million square feet, with a 150,000-kg capacity that Battley says will be needed no matter where the needle lands on recreational market demand.

“We’re putting every effort into this (project) because of the demand we’re receiving for our products in the Canadian medical system, the Canadian consumer system, and the rapidly proliferating international medical systems,” said Battley. “There is a massive global shortage of legal, regulated cannabis.”

Last month, the city of Medicine Hat planning office approved building permits for foundation work on the facility that will sit on a 58-acre site in the Box Springs Business Park.

That follows site grading work largely completed in the mid summer.

The company also has private land deals for adjacent parcels of 12 acres, which is earmarked for future expansion of 300,000 growing feet, and 20 acres for a commercial project.

Those parcels were partially covered in a city council resolution to pay $6.6 million in off-site development fees out of reserve funds rather than collect them from Aurora via the developer, thereby lowering the land purchase price.

That resolution, along with a 10-year power-supply agreement with city power utility, was announced at city hall on April 16.

Company officials have said Aurora Sun could employ 450 workers when in full operation. A company related to Aurora is the general contractor, but officials have said numerous opportunities exist for local subcontractors.

More information will be unveiled in Medicine Hat in the coming months, Aurora communications officers have told the News.

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