NSW Government Backs Shift to Hemp-Based Construction with Australia’s First Large-Scale Hemp Manufacturing Facility

An Australian startup building homes from hemp has secured $2 million in NSW Government funding to scale its manufacturing from a facility in Toormina, near Coffs Harbour. The investment aims to shift the construction industry away from carbon-heavy materials while supporting the state’s agriculture sector.

Living Canvas is a recipient of the NSW Government funding through the Agriculture Industries Innovation and Growth Program to help establish a regional industrial hemp processing and prefabricated panel manufacturing facility. The new facility will support regional manufacturing, create value from Australian-grown hemp, and help make hemp-based construction more accessible to homeowners, architects and builders.

Living Canvas Co-Founder Harrison Marsh says the team set out to make hemp accessible in the construction industry and prove it belongs in the mainstream.

“We’re thrilled to receive this support, which will enable us to grow through the development of new plant and equipment, for Australia’s first large scale hemp based manufacturing facility,” he says. “It 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.”

“It will bring jobs to regional NSW and enable our Living Canvas panels to be used on more building projects across the country. More hemp in construction doesn’t just build better homes, it supports an emerging agricultural industry for NSW.”

It offers homeowners, architects and builders a smarter way to build; faster to complete, better performing, and healthier to live in than conventional construction.

The funding will support the establishment and commissioning of the facility, including production equipment, factory setup, material handling and the quality systems needed to scale responsibly. Every home built with Living Canvas strengthens the supply chain behind it, directly supporting the growers and processors driving the industrial hemp industry forward in NSW.

Premier of New South Wales Chris Minns says “Agriculture is one of the most important industries for our state. The sector contributes billions of dollars to our economy, underpins thousands of jobs in regional communities and puts food on our tables.

“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.”

Fast-growing and naturally fire-resistant, hemp insulates well, requires no synthetic inputs, and supports healthier, more efficient buildings. Hempcrete – the plant-based construction material made from hemp – sequesters more carbon than is emitted during production and installation, making it carbon negative over its lifecycle.

The Living Canvas Structural Insulated Panels (SIPs) are made from locally grown Australian hemp and include wall, floor and roof cassettes, offering a complete building envelope that naturally regulates heat and moisture and meets high bushfire performance ratings.

The grant also advances hemp as a construction material more broadly, creating a higher-value use for hemp hurd – the woody core of the hemp plant – and helping move hemp construction from niche and experimental toward a scalable regional supply chain connecting growers, processors, manufacturers, builders and customers.

Minister for Agriculture and Regional NSW Tara Moriarty says “Investing in agriculture means investing in the strength of our regional communities.”

Beyond materials, Living Canvas’s vision is to change how Australians think about homebuilding. Through its sister company Otetto, it has also launched three architecturally designed prefabricated houses using Living Canvas panels, demonstrating how hemp can support healthier, more climate-responsive homes.

For more information visit Living Canvas