Hemp is a profitable, low maintenance crop with growing potential in the construction industry
Fast-growing and requiring minimal inputs, hemp fibre crops can enhance soil health while offering a sustainable solution for the construction industry. With exceptional carbon sequestration properties, it is ideal for energy-efficient, non-toxic materials like hempcrete and natural fibre composites which offer excellent insulation qualities. Its lightweight yet durable nature also helps reduce embodied carbon in builds and can replace higher-emission materials.
The Branching Out project sees locally grown and processed hemp, and regionally developed construction materials, having potential to unlock significant economic and environmental benefits and to offer promise in both domestic and export markets.
A 2021 report commissioned by MPI suggests that a New Zealand hemp industry, driven largely by fibre-based (as opposed to food or medicinals-based) products, has the potential to be a $25 million export industry by 2030 if New Zealand were to win just 0.1% of export market share.
Taranaki is uniquely positioned to lead New Zealand’s hemp industry, thanks to its fertile soils, favourable climate, and central North Island location. The region also has strong engineering, manufacturing, and agricultural pedigree, with good engagement from the local construction sector interested in exploring hemp construction materials as a future opportunity.
By harnessing the potential of hemp, Taranaki can drive economic diversification, create jobs, and contribute to national goals for reducing emissions and shifting to a lower-carbon economy.
Snapshot of the opportunity
- Versatility: From construction to high-strength textiles and biodegradable plastics, hemp offers nearly endless product possibilities.
- Economic opportunity: The growing demand for eco-friendly construction materials in particular could position Taranaki as a potential leader in this sector.
- Environmental impact: Hemp can absorb 8-15 tonnes of CO₂ per hectare in a single growing season and its deep root systems improve soil.
- Taranaki is a prime location: Our central North Island location, close to New Zealand’s largest construction and population centres of Auckland, Hamilton and Tauranga, is well-placed to be the home of value-added processing. Taranaki also has considerable engineering and manufacturing expertise.
Kickstarting local hemp processing in Taranaki
Branching Out project has secured funding for a pilot-scale hemp fibre processor, capable of handling 640 tonnes of hemp annually over an average working week. This processor will be operated within the community, supporting local growers to scale their operations and enabling the production of hemp materials for construction.
Initial purchase of this pilot-scale hemp fibre processing facility project is being funded by the Three Waters Better Off Grant Fund package that was offered to councils by the previous Government. In September 2022 NPDC allocated funding to a range of initiatives, including this one.
An Expression of Interest process will be facilitated seeking applications for those businesses with an interest in developing the hemp fibre industry. Sign up to our newsletter to be first to learn more about this opportunity.
Hemp matures in three months and 1.6 hectares produces enough fibre to build a 150sqm house.
This figure is based on Taranaki hemp trial data and volumes used in local hempcrete house builds.
What we’ve learned - Hemp thrives in Taranaki
Trials undertaken by the Branching Out project over the last two growing seasons have indicated that hemp could be grown at commercial scale in Taranaki.
The project is testing three fibre cultivars to determine the suitability to specific Taranaki conditions and to provide parties from across the value chain, from landowners to contractors to processors, with hands-on experience with the crop. Time of sowing and seed density are some of the variables factored into the trial, as is analysing post-harvest and processing implications of these various cultivars.
Key trial findings include:
- Consistent results: Our trials have demonstrated consistent establishment, growth and biomass yields at both trial sites (one in North Taranaki and one in South Taranaki).
- Low maintenance: Hemp trials to date have required minimal inputs, such as fertilizers, irrigation, and weeding, making it a low-risk and sustainable choice for land diversification.
- Complementary attributes: Hemp is showing promise as part of a crop rotation, with potential to provide agronomic, economic, and environmental benefits.
Find out if your land is suitable for hemp fibre
Download the PDF or view our interactive GIS map. Enter your address to get a more accurate understanding of the suitability of your land.
Establishing Taranaki as New Zealand’s “hemp hub” for construction in the North Island
Branching Out has a clear roadmap for how Taranaki - with good growing conditions and expertise in agriculture, processing, manufacturing, and engineering - could be positioned as a hemp hub for the country.
The project has taken a product and community-led approach, aligning hemp opportunities with market demand.
Recognising the region’s relative expertise in hemp construction (Taranaki has had 4 hempcrete houses consented to date – more than any other region), the project team engaged the construction sector through workshops and a hempcrete demonstration, which highlighted both the material’s benefits and also a value-proposition for modular hemp building products. Such products are being actively explored via R&D partnerships.
While product development is ongoing, and with funding secured for a pilot-scale hemp processor, our immediate focus is on producing hemp product suited to hempcrete construction applications.
Supply of sustainable solutions for New Zealand’s building and construction sector (which is responsible for between 9.4% - 15% of New Zealand’s domestic GHG emissions) offers a market opportunity for Taranaki and could contribute towards New Zealand’s goal of achieving net zero carbon emissions by 2050.
Hempcrete is an immediate focus
National demand and interest in hempcrete is growing
With growing national interest, and increasing capability within the local construction industry, hempcrete is poised to play a key role in the future building landscape.
The Branching Out team are currently receiving weekly enquiries related to the hemp fibre work, including hurd supply, – an indication that the practical and environmental benefits of hempcrete are being recognised—not just as a sustainable alternative, but as a high-performing building material.
Hempcrete aligns with New Zealand’s tightening building and environmental regulations, including MBIE’s Building for Climate Change programme, which signals an aim of reducing construction-related emissions to near zero by 2050. As more builders, developers, and policymakers seek low-emission alternatives, the demand for hempcrete (and innovation in the sector) is expected to rise significantly.
What is hempcrete?
Hempcrete is a lightweight, low or negative carbon building material made from hemp hurd fibre mixed with a binder (usually lime-based). It offers exceptional thermal insulation, fire resistance, and breathability, while being non-toxic, fully biodegradable, and highly durable.
Local building talent is upskilling
In October last year, Venture Taranaki supported two builders, one architectural designer, and one quantity surveyor to attend a Hemp Building Practical Workshop hosted by HempCentral Limited in Queensberry, near Wānaka.
During this course, hands-on training was delivered by Ben Convery from the Australian Hemp Masonry Company (AHMC). AHMC are leaders in the Australian hemp construction industry, having supplied materials and guidance to over 250 residential hempcrete builds since 1999, including the award-winning Canberra Hempcrete House, which won the Housing Industry Association Australian GreenSmart Award in 2018.
The demand for this training was encouraging, with more than 40 applications received for the course—demonstrating the strong local appetite for using hempcrete in construction. To make this training more accessible, a hempcrete workshop will be hosted in Taranaki later this year for those interested in gaining hands-on experience with this innovative material.
If you are interested in future hempcrete workshops, please register here.
Hempcrete builds in Australia are growing
Hempcrete builds in Australia are increasing in popularity, driven by rising demand for sustainable construction materials and growing industry support.
Initially, hempcrete was primarily used in small-scale, privately funded eco-homes, but it is now expanding into larger civic and commercial projects. Familiarity with hempcrete is growing among builders, architects, and developers, with it being recognised for its ability to reduce carbon emissions and construction waste, improve energy efficiency, and support a healthier indoor environment.
New Zealand is following this trend closely, with Taranaki currently an early leader in the country’s adoption of hempcrete as a mainstream construction material.
Taranaki local, Timothy Steedman, previously involved in consenting locally built hempcrete houses in New Plymouth, has been appointed to the Australia/New Zealand working group for hempcrete building standards in October 2024. This group is working towards having an agreed building standard in place that will allow for streamlining of hemp house consenting.
Engineering record of Taranaki
Taranaki has a longstanding track record of excellence in engineering and innovation – a capability which could pivot to the development of construction materials for export, as well as hemp processing equipment.
Hempcrete is an immediate focus
With growing national interest, and increasing capability within the local construction industry, hempcrete is poised to play a key role in the future building landscape.
The Branching Out team are currently receiving weekly enquiries related to the hemp fibre work, including hurd supply, – an indication that the practical and environmental benefits of hempcrete are being recognised—not just as a sustainable alternative, but as a high-performing building material.
Hempcrete aligns with New Zealand’s tightening building and environmental regulations, including MBIE’s Building for Climate Change programme, which signals an aim of reducing construction-related emissions to near zero by 2050. As more builders, developers, and policymakers seek low-emission alternatives, the demand for hempcrete (and innovation in the sector) is expected to rise significantly.
Hempcrete is a lightweight, low or negative carbon building material made from hemp hurd fibre mixed with a binder (usually lime-based). It offers exceptional thermal insulation, fire resistance, and breathability, while being non-toxic, fully biodegradable, and highly durable.
In October last year, Venture Taranaki supported two builders, one architectural designer, and one quantity surveyor to attend a Hemp Building Practical Workshop hosted by HempCentral Limited in Queensberry, near Wānaka.
During this course, hands-on training was delivered by Ben Convery from the Australian Hemp Masonry Company (AHMC). AHMC are leaders in the Australian hemp construction industry, having supplied materials and guidance to over 250 residential hempcrete builds since 1999, including the award-winning Canberra Hempcrete House, which won the Housing Industry Association Australian GreenSmart Award in 2018.
The demand for this training was encouraging, with more than 40 applications received for the course—demonstrating the strong local appetite for using hempcrete in construction. To make this training more accessible, a hempcrete workshop will be hosted in Taranaki later this year for those interested in gaining hands-on experience with this innovative material.
If you are interested in future hempcrete workshops, please register here.
Hempcrete builds in Australia are increasing in popularity, driven by rising demand for sustainable construction materials and growing industry support.
Initially, hempcrete was primarily used in small-scale, privately funded eco-homes, but it is now expanding into larger civic and commercial projects. Familiarity with hempcrete is growing among builders, architects, and developers, with it being recognised for its ability to reduce carbon emissions and construction waste, improve energy efficiency, and support a healthier indoor environment.
New Zealand is following this trend closely, with Taranaki currently an early leader in the country’s adoption of hempcrete as a mainstream construction material.
Taranaki local, Timothy Steedman, previously involved in consenting locally built hempcrete houses in New Plymouth, has been appointed to the Australia/New Zealand working group for hempcrete building standards in October 2024. This group is working towards having an agreed building standard in place that will allow for streamlining of hemp house consenting.
Taranaki has a longstanding track record of excellence in engineering and innovation – a capability which could pivot to the development of construction materials for export, as well as hemp processing equipment.
Construction projects using hemp
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Product development strategy and long-term opportunity for Hemp in Taranaki
Alongside hempcrete, the Branching Out project is taking a product-led approach to developing the hemp industry, focusing on high-value, market-ready applications that align with sustainability goals and construction sector demand.
A core element of this strategy is the development of a "hero product"— a hemp fibre panel that could replace imported building materials while offering superior performance. This work has been informed by collaborations with Massey and Canterbury universities, where research and product development studies were undertaken, alongside engagement with local construction firms to ensure product viability.
Key elements of the product development strategy
- Prototype Testing & Refinement: Hempboard prototypes have been tested for performance, durability, and compliance with relevant Australia/New Zealand building codes. Early-stage testing has assessed structural integrity, moisture resistance, fire performance, and formaldehyde emissions. Ongoing research is focused on improving the board’s dimensional stability to achieve full compliance for use in mainstream construction applications.
- Industry Collaboration: Partnerships with regional and national manufacturers aim to advance product design and explore scalable production models.
- Regulatory & Market Readiness: Venture Taranaki is continuing to monitor changes in the regulatory landscape and innovation ecosystem that can present enablers and/or barriers to the introduction of new construction products.
By focusing on high-value, scalable hemp products, Taranaki can lead New Zealand’s transition to sustainable building materials, creating economic and environmental benefits for the region.
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Watch this short informative video about hempcrete construction in Wānaka.
Our blueprint for hemp fibre in Taranaki
This blueprint provides an overview for commercial production and processing of hemp fibre for construction in Taranaki, and an indication of potential returns.
Please note: This blueprint was produced in 2022.