Pictured: X-Hemp Founder, Andi Lucas
- Tasmanian sustainable construction firm X-Hemp closes out $3.4m seed capital raise
- Danehill Group delivers largest single private investment in Tasmanian hempcrete industry
- New capital to accelerate critical infrastructure procurement, national expansion and drive future R&D programs
Sustainable construction materials pioneer X-Hemp has sowed the path to expansion after closing its seed capital round with a final $1 million share sale to strategic investment partner Danehill Group, bringing the Tasmanian hemp fibre processing firm’s total seed capital funding to $3.4 million.
Founder and majority owner Andi Lucas, X-Hemp, said, “Finalising this capital raise reflects the enthusiasm of our investors to join us as we work to transform the construction industry in Australia. 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”.
With ambitions to replicate the success of the European and North American hempcrete industries – worth $3.5bn in 2025 and set to grow to $8.4bn by 2032* – this capital injection puts the Grand Designs Australia-featured business in pole position to cement its place as a leading player in the burgeoning Australian hemp industry.
The company, founded in September 2020, plans to procure critical infrastructure, conduct further R&D and generate additional roles to bolster its existing eight-person, all-female team. The primary output from the factory forms a product known as hempcrete, a natural building material made from hemp fibres, lime, and water.
Hempcrete walls are non-combustible, termite-proof and mould-resistant, with construction costs comparable to a double-brick property. Unlike traditional concrete and conventional building materials, hempcrete stores carbon instead of producing it, making it a healthier, eco-friendly way to build, while a well-built property requires limited-to-no significant heating or cooling delivering wider cost benefits.
Founded by John and Hamish Murray, Danehill Group will play a vital role in delivering fast-tracked business growth. By bringing in new partners with industry expertise across a range of sectors, X-Hemp is now positioned to scale after four years securing supply chains and supplying both residential and major commercial projects like the award-winning University of Tasmania’s Forestry Building in Hobart.
Lucas added, “Danehill Group’s investment in X-Hemp allows us to benefit from John and Hamish’s extensive industry experience and commercial connections. Their strategic investment not only underlines the potential they see in our industry, but the confidence they have in the capability of our organisation and my team. As a proud Tasmanian, I’m passionate about delivering both economic and employment opportunities within my home state and beyond, and we’re looking forward to welcoming new staff and more farmers to our passionate crew very soon”.
John Murray, Danehill Group said, “It is important to our family to be contributing to an environmentally sustainable and gender-equal future and we are thrilled to be partnering with Andi and her team at X-Hemp. 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. 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”.
To learn more about X-Hemp and its wider range of showcase projects, click here.
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