Hemp makes a comeback in the construction industry

Tired of his life as a computer engineer, Elad Kaspin packed his bags in 2010 and traveled the world.

Mr Kaspin wanted a break from Israel and described life in the country as complicated. “I knew I didn’t want to live there, even though I have a good life with a good salary,” he says.

After a two-year journey, he arrived in Colos, a village in southern Portugal between the cities of Odemira and Ourique. He liked it so much that he decided to stay.

He wasn’t the only one. In recent years, the region has seen a wave of migrants drawn by the dramatic, vast and empty plains, relaxed way of life, good weather and cheap real estate.

But that popularity didn’t translate into good, stable jobs.

With the help of Palestinian boyhood friend Omer ben Zvi, Mr. Kaspin decided to set up a company called Cânhamor.

Their idea was to take advantage of Portugal’s relaxation of laws on growing hemp, part of the cannabis plant family.

With official permits, the cultivation of cannabis and hemp has been permitted since 2018.

The laws have since been refined, but with the approval of the Directorate-General for Food and Veterinary Affairs, farmers can grow hemp as long as regulatory oversight is in place.

It marks a revival of hemp in Portugal. It was an essential raw material for the nation’s maritime expansion that began in the 15th century when it was used to make cord, rope, and sails.

Hemp fiber was valued for its durability, a quality that has caught the attention of today’s construction industry.

Not only is it tough, but hemp has the potential to yield big savings in carbon emissions.

The plant sequesters carbon dioxide when grown and, when made into blocks, can replace concrete, which is a carbon-intensive product.

According to a report by the European Commission, hemp’s carbon sequestration properties are remarkable.

In just five months, one hectare of hemp can capture between 9 and 15 tons of carbon dioxide.

Mr. Kaspin wanted to capitalize on these qualities by starting his own hemp building block manufacturing business.

With an initial investment of €1m (£880,000; $1m), Cânhamor was formed in early 2021, and production began a few months later.

The blocks consist of so-called hemp concrete, a mixture of hemp plant parts, water and limestone flour.

According to Mr. Kaspin, the blocks have several advantages over traditional building materials.

Not only are hemp blocks much less carbon intensive to manufacture, but they insulate against heat and sound better than brick and concrete.

He also says that they are highly resistant to fire.

In 2019, researchers in Australia conducted tests on hemp walls, including simulating a brush fire, and found the material to be highly resistant to fire damage.

However, hemp blocks have to compete with concrete, which is cheaper, stronger, and well known to builders.

The cost of hemp blocks also reflects the cost of growing hemp, which involves expensive inputs like fertilizer.

In the early days, Mr. Kaspin struggled to convert customers to hemp blocks.

“The construction industry is a very conservative industry with almost no change. Many architects and builders are doing what they have always done. It’s not easy to introduce new things,” he says.

But after several attempts, they found some customers and have been building the business ever since.

Currently, Cânhamor produces between 4,000 and 10,000 blocks each month, enough to build about three houses.

Demand is high and the company is planning a new factory that will produce around 120,000 blocks a month.

So the next problem is getting enough hemp to power the new factory.

Right now, Cânhamor is buying hemp from abroad, which is driving up the cost of its blocks. The plan is to persuade other local farmers to grow the plant.

“There was no factory because there was no annex, and there was no annex because there was no factory. We have the opportunity and privilege to break this cycle,” says Mr. Kaspin.

“With local materials and larger capacity, production costs will drop significantly. In 2024 we will be able to offer our blocks at significantly lower prices,” he predicts. “Even cheaper than concrete.”

More technology of business:

In order to produce enough hemp fiber, he estimates that 1,000 hectares of hemp must be grown.

“We are in talks with several farmers. We offered to buy all of their crops. And we know there are people who want to buy not just blocks, but every hemp by-product that we’re going to make at the new facility.”

They will begin testing in January with a handful of experienced local farmers, growing hemp in a growing area of ​​up to 10 hectares “so they can try and see,” says Mr. Kaspin.

He expects to tap up to 150 hectares of local hemp production by the end of this year. The target for 2024 is 500 hectares. But it will depend on the willingness of Alentejo farmers to change course towards foliage.

Cânhamor will have to compete with larger European companies such as Belgium’s Isohemp.

The factory in central Belgium has a production capacity of five million blocks a year, or enough to build around two houses a day.

Unlike Cânhamor, it can source most of the hemp it needs locally from northern France and southern Netherlands.

But the two companies share a similar challenge.

“The construction sector is indeed a very traditional market and habits take time to change. The current obstacles are the lack of knowledge of the product,” says Charlotte De Bellefroid of Isohemp.

Cânhamor, back in southern Portugal, aims to become one of the largest local employers, increasing the number of its employees to 30 from the current six working on the production line.

Marcelo Guerreiro, Mayor of Ourique, told the BBC: “We were unfamiliar with the potential of hemp, but we approached the proposal with an open mind.”

The local council provided Cânhamor with the land needed for the new factory. Cânhamor raised the money needed to build the factory, estimated at €5 million.

“Thirty jobs are very important for Ourique and Cânhamor will be one of the largest employers in the city,” says the mayor.

“We are satisfied with the recent developments regarding cannabis in Portugal, not only in legal terms but also in terms of societal acceptance,” he adds.