Tasmanian hemp construction firm X-Hemp has closed a seed capital raise after securing what is understood to be the largest single private backing in the state’s hempcrete sector.
The $1m contribution from Danehill Group, a private investment firm, has taken the total raised to $3.4m over the past two years.
X-Hemp, which produces the natural building material made from hemp fibres, lime and water, said the funding will fast-track production, create local jobs and expand the supply of renewable materials.
With global hempcrete markets valued at US$3.5 billion (A$5.3bn) this year, and forecast to more than double by 2032, the firm believes it is set up to become a leading company in Australia’s hemp industry.
Founder Andi Lucas said the raise reflected investor confidence in the product, adding the funds would enable the company to expand.
“Finalising this capital raise reflects the enthusiasm of our investors to join us as we work to transform the construction industry in Australia,” she said.
“Most importantly, it enables us to fast-track our ambitious business plan to meet the growing demand for sustainable building and industrial fibre products into Aussie markets.”
Danehill Group founder Hamish Murray said his firm shared Lucas’ vision for the company’s growth.
“Whilst the industrial hemp industry in Australia is very much in its formative stages, we share Andi’s vision that X-Hemp can be a market leader in what could be a rapidly growing industry,” Murray said.
“A solution needs to be found for both Australia’s chronic housing shortage and carbon-emitting construction industry; we have absolute confidence that X-Hemp will be a part of the solution, and we look forward to the journey ahead.”