Newly public AgTech startup HEMPALTA (TSXV:HEMP) has acquired a controlling interest in UK-based Hemp Carbon Standard (HCS). The $2.2 million stake in the leading carbon platform for industrial hemp farming is a vital element to HEMPALTA’s growth strategy.
HCS focuses on harnessing the natural carbon sequestration properties of industrial hemp to address climate change. Its platform creates and distributes HCS Carbon Certificates that are used to certify the capture and long-term storage of CO2 through sustainable hemp farming practices.
The transaction gives HEMPALTA an additional revenue stream to its consumer packaged goods and commercial products divisions which are produced at its Calgary plant. The startup was a member of Calgary.tech’s 2023 watchlist of companies.
“The acquisition means we can deepen our collaboration with farmers worldwide, adopt an established and highly scalable platform with reliable and quantifiable carbon credits, and share the financial benefits of the credits to create value for all parties involved,” said Darren Bondar, HEMPALTA’s President and CEO.
Industrial hemp possesses the ability to absorb substantial amounts of CO2 during its rapid growth cycle.
“The ability to work closely with HEMPALTA will enable us to broaden our platform to markets throughout the world,” said Tim de Rosen, CEO of ClimaFi, the company that sponsors HCS. “These credits offer corporate buyers the opportunity to secure high-quality, high-integrity credits and to advance their decarbonization efforts.”
HCS’s quantification methodology leverages cutting-edge remote sensing technology, ensuring the precise measurement of CO2 sequestration within the biomass of the industrial hemp crop and associated topsoil at a farm. The approach guarantees transparency, accuracy, and integrity in carbon accounting so corporate buyers can achieve their sustainability goals.
HCS’s platform monitored 15 farms, 45 sites, and 1,380 hectares (3,410 acres) in Canada, the U.S., Ukraine, and Spain in 2023, which resulted in the sequestering of 12,354 tonnes of CO2. That amount of CO2 is equivalent to 56 million kilometres (35 million miles) driven by gasoline-powered automobiles.
HEMPALTA will be marketing to companies in multiple industries so corporate buyers can secure the hemp carbon credits. By doing so, these companies demonstrate a commitment to sustainability and support farmers embracing regenerative agricultural practices.
Leave a Reply