Australian hemp leader New South Wales is continuing to solidify its position as the country’s most active industrial hemp state, investing A$2 million (US$1.4 million) to help expand large-scale manufacturing of hemp-based building materials while strengthening the regional supply chain from farm to construction.
The funding, awarded to Toormina-based startup Living Canvas through the New South Wales Agriculture Industries Innovation and Growth Program, will help establish a regional industrial hemp processing and prefab manufacturing facility. The investment is intended to expand production of hemp-based structural insulated panels while creating additional demand for Australian-grown hemp.
‘Enormous potential’
Premier Chris Minns said the investment reflects the state’s strategy of using public funding to attract larger private-sector investment.
“This co-investment model unlocks enormous potential for our state’s primary industries, driving private investment in projects that advance the sector and deliver real benefits for regional communities across New South Wales,” Minns said.
The new award builds on New South Wales investments in industrial hemp processing. Last month, the state committed A$10 million (US$6.5 million) to two other major hemp manufacturing projects: a Chinese-backed venture by Ausuntech to establish a linen-quality hemp fiber processing plant near Carrathool, and a Murray Industrial Hemp project to build a manufacturing facility producing hemp blocks for the construction sector.
Supply chain
The new facility will support commissioning of production equipment, factory fit-out, material handling systems and quality controls needed to scale manufacturing at Living Canvas. The company said the expansion will also strengthen markets for growers and processors supplying industrial hemp in New South Wales.
Structural insulated panels for wall, floor and roof components made by Living Canvas are designed to provide a complete building envelope with thermal and moisture regulation while meeting high bushfire performance standards.
Living Canvas Co-Founder Harrison Marsh said the company was founded to demonstrate that hemp construction can move beyond niche applications. The investment also advances the development of a broader regional supply chain linking growers, processors, manufacturers, builders and customers.
“More hemp in construction doesn’t just build better homes, it supports an emerging agricultural industry for NSW,” Marsh said. He said the expansion of hemp in building materials “marks the beginning of a significant change within the Australian construction industry, as we shift away from carbon-heavy materials and towards a biobased future.”
State strategy
The latest investment continues a broader New South Wales strategy aimed at using targeted government funding to accelerate private investment in hemp processing and manufacturing.
In June, the state released its Hemp Industry Development Plan, shifting its emphasis from proving hemp’s agronomic potential to building commercially viable processing capacity and manufacturing industries. The strategy calls for private capital to drive long-term industry growth while government focuses on research, regulatory improvements, industry coordination and strategic grants.
The plan also highlighted the large gap between approved hemp acreage and land actually planted, underscoring the need for stronger downstream markets and processing infrastructure.
