Low Carbon Accelerator has invested of £1,088,000 in Hemcore for a 30% equity stake. The investment was part of an overall £2.6m funding round.

Hemcore is the UK’s largest grower and processor of industrial hemp, with around 1,000 hectares being farmed under contract. The investment will go towards new plant and increase the product range, including natural fibre insulation, called Breathe. Development work is also underway to develop a hemp-based particle board for internal uses.

The investment will also help the development of the thermally efficient Hemcore – a mix of hemp and special lime. Hemp is efficient at absorbing CO2 during its growth.

Andrew Newman, CFO of Low Carbon Initiative Limited, LCA’s investment manager, said: “As an investor in low-carbon buildings, we feel it is essential to look at the whole supply chain of construction materials, not just the finished building. Hemcore shows that low-impact, low-input agriculture can provide these materials. The market for these products is already large, so, just as with their crops, we look forward to watching this company grow.” Mr. Newman will be joining the board of Hemcore.

Mike Duckett, Managing Director of Hemcore said: “We welcome this injection of capital to boost our production. The demand for products derived from the versatile hemp plant is growing rapidly. Without the support of LCA this new exciting market could not be exploited to its full potential. We have always believed that British agriculture should diversify into non-food and sustainable alternative crops. Our business model shows how we can benefit British agriculture and British industry at the same time, while maintaining a low-carbon edge in both.”