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Sustainable construction materials company X-Hemp has closed a $3.4 million seed funding round after securing a final $1 million share sale to strategic investment partner Danehill Group.
X-Hemp, which featured its products used in the Huon Hemp Home episode of Grand Designs Australia last year, says the funding round will help the company fast-track production, create local jobs and expand the supply of renewable materials in the construction sector.
Founded in 2020 by sustainability-driven entrepreneur Andi Lucas, the Tasmania-based X-Hemp uses both agricultural waste and purpose-grown cannabis crops to make environmentally friendly hemp building products.
“Finalising this capital raise reflects the enthusiasm of our investors to join us as we work to transform the construction industry in Australia,” says Lucas, who retains a majority interest in the business following the latest funding round.
“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.”
X-Hemp plans to use the new capital to procure critical infrastructure, conduct further R&D and generate additional roles to bolster its existing all-female team of eight.
The primary output from the factory forms a product known as hempcrete, a natural building material made from hemp fibres, lime and water.
X-Hemp is aiming to replicate the success of the European and North American hempcrete industries which was worth $3.5 billion in 2025 and expected to grow to $8.4 billion by 2032.
The company says 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”.
Through its investment, Danehill Group, which was founded by John and Hamish Murray, will play a key role in delivering business growth for X-Hemp.
The company says that 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. Among them is the award-winning University of Tasmania’s Forestry Building in Hobart.
“Danehill Group’s investment in X-Hemp allows us to benefit from John and Hamish’s extensive industry experience and commercial connections,” says Lucas.
“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”.
Danehill Group’s John Murray points to the importance of his family to be contributing to an “environmentally sustainable and gender-equal future”.
“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,” says Murray.
“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.”
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