Sustainable Cannabis In Coachella Valley: Green Horizons' 1M Sq Ft Facility, Tommy Hilfiger CPG Expansion

In an exclusive interview with Benzinga Cannabis, Carlos "Los" Arias, co-founder of California marijuana company Green Horizons, discussed the company's innovative approach to cultivation and margins, emphasizing sustainability and cost efficiencies at the company's new facility in Coachella Valley.

Arias shared first-hand insights into sustainable business practices, efficient resource use in high-end cannabis cultivation operations, and future expansion plans in consumer packaged goods (CPG) through strategic partnerships.

Sustainable Cannabis In Coachella Valley

With a focus on leveraging the local environment and strategic real estate investments, Green Horizons aims to produce high-quality cannabis while keeping operational costs down.

All Photos Courtesy of Green Horizons

Green Horizons leverages the local environment in Coachella Valley to achieve sustainability. The desert's low humidity allows for the use of natural CO2, eliminating the need to pump in additional CO2.

The facility employs wet wall evaporative cooling technology instead of HVAC systems, reducing energy consumption. The nutrient mix used is completely organic, resulting in minimal runoff and reduced need for salt extraction.

"Harnessing the local environment is key," Arias explained. "There’s no humidity in the desert, so we use natural CO2 and wet wall technology for cooling. This approach contributes to our sustainability quotient and helps cultivate better cannabis for less."

Arias highlighted the economic advantages of these sustainable practices. By optimizing resource use, Green Horizons can reduce operational costs, leading to improved margins. "Investing in sustainable operations offers long-term benefits. Reduced energy and water usage lower overhead costs, and adherence to environmental standards can enhance brand reputation," he noted.

Real Estate Strategy

Real estate is a critical component of Green Horizons' strategy. Their expertise in selecting and developing the Coachella Valley site has been pivotal. Controlling real estate allows Green Horizons to manage costs and optimize operations.

All Photos Courtesy of Green Horizons. 

The facility benefits from being off the Edison grid, using a local power company, which saves 25-30% on power costs.

"If you can control the real estate and have expertise in development, you control your destiny," Arias stated. The Coachella Valley site spans over 1 million square feet, with 100,000 square feet of canopy space. This location was chosen for its favorable power and water conditions and cooperative local government.

The efforts in negotiating and developing infrastructure to support a cannabis zone took years. Now Green Horizons has an additional 900,000 square feet of shovel-ready, fully entitled land.

This phased approach allows the company to scale operations based on market demand, ensuring efficient use of resources and capital.

Facility Overview

Green Horizons opened the first 100,000 sq. ft. phase of its one million square foot state-of-the-art cultivation campus in Coachella, California this week. This first phase will produce 35,000 lbs. of premium sun-grown cannabis annually at a low-cost basis.

"Cannabis is finally getting its due as a medicine," Arias stated at the ceremony, which was attended by California State Treasurer Fiona Ma and other dignitaries. In a press release, Ma highlighted the economic benefits, noting that the $65 million facility's opening would bring tax revenue and job creation to the area, especially with potential banking reforms on the horizon.

The Coachella facility is a significant investment for Green Horizons.

All Photos Courtesy of Green Horizons. 

The first structure is 100,000 square feet with 60,000 square feet of canopy. This building represents the initial phase of a larger development plan. The facility is designed for large-scale cultivation, projected to produce 35,000 pounds of premium cannabis flower annually.

"Our facility is designed to optimize growing conditions," Arias explained to Benzinga Cannabis. "We use exhaust fans and wet wall technology to maintain a cool environment even in peak summer temperatures."

By owning the real estate, Green Horizons is not reliant on third-party landlords, allowing for greater control over operations. This ownership model supports long-term strategic planning and operational stability. 

To learn more about the cannabis business and how to invest in the sector, don't miss the opportunity to join us at the 19th Benzinga Cannabis Capital Conference in Chicago this October 8-9. Engage with top executives, investors, policymakers, and advocates to explore the industry's future. Secure your tickets now before prices increase by following this link.

Cultivar Selection And Future Plans With Tommy Hilfiger 

Green Horizons is selective about its cultivars, focusing on robust cannabinoid profiles and market trends. Initially, the facility will produce bulk cannabis for wholesale.

The company plans to expand into CPG, leveraging its partnership with Tommy Hilfiger. This phased approach ensures steady revenue generation while exploring new market opportunities.

"We are keen on innovation and robust cannabinoid profiles," Arias shared. "Our initial focus is on bulk cannabis, but we plan to expand into CPG and apparel with our partner Tommy Hilfiger PVH."

All Photos Courtesy of Green Horizons.