Cannabis Extraction Methods Compared: Ethanol vs BHO vs CO2
A head-to-head comparison of the four main extraction methods for cannabis processing.
Choosing an extraction method is one of the first — and most consequential — decisions you'll make when setting up a cannabis processing operation.
This guide compares the four main extraction methods: hydrocarbon (BHO/PHO), ethanol, CO2, and solventless.
Hydrocarbon Extraction (BHO/PHO)
A closed-loop system pushes chilled butane or propane through cannabis biomass. The solvent dissolves cannabinoids and terpenes, then gets recovered.
Strengths: Best terpene preservation, premium products (live resin, diamonds), fast processing. Weaknesses: C1D1 room required ($100K-$500K), Type 7 license only, highest safety demands. Best for: Premium concentrate producers willing to invest in infrastructure.
Ethanol Extraction
Cannabis biomass is soaked in chilled ethanol (-40C to -60C). The ethanol dissolves cannabinoids, then is recovered using a rotary evaporator.
Strengths: Most scalable (50-500+ lbs/hr), excellent solvent recovery, simpler facility, Type 6 eligible. Weaknesses: Chlorophyll co-extraction, lower terpene preservation, winterization required. Best for: High-volume operations making distillate for cartridges and edibles.
CO2 Supercritical Extraction
Carbon dioxide is pressurized above 1,070 psi and heated above 31C. This supercritical CO2 dissolves cannabinoids from biomass.
Strengths: No residual solvents, tunable selectivity, no C1D1 room, Type 6 license. Weaknesses: Highest equipment cost ($200K+), slower throughput, steeper learning curve. Best for: CBD extraction, clean-label products, well-capitalized startups.
Solventless Extraction
Trichomes are mechanically separated using ice water, then dried in a freeze dryer and optionally pressed into rosin.
Strengths: Lowest barrier to entry ($15K-$40K), simplest licensing, premium consumer perception. Weaknesses: Limited scalability, limited product types, lower yields. Best for: Craft brands targeting the premium solventless market.
Decision Framework
Start with your license: Type 6 limits you to ethanol, CO2, or solventless. Type 7 allows any method.
Then consider your products: Live resin needs BHO. Bulk distillate needs ethanol. Clean-label needs CO2.
Then match your budget: Under $50K = solventless. $50K-$150K = ethanol. $150K-$300K = ethanol or BHO. $300K+ = BHO with C1D1 or CO2.
No method is universally best. The right one depends on your license, target products, and capital.