Calgary-based Hempalta (TSXV:HEMP) announced a strategic shift to prioritize nature-based carbon credit solutions, citing the scalability and global impact of industrial hemp as key drivers of the decision.
In an interview the Investing News Network, President and CEO Darren Bondar emphasized that the move aligns with the company’s long-term goal of maximizing returns for investors, while contributing to global carbon sequestration efforts.
“We just realized that the carbon credit opportunity was the best spot for us, as we can have an impact globally by monitoring farms in various countries,” he stated. “We’re already operating in 11 different countries, monitoring farms, and we have a very unique offering that nobody else in the world, at least to the best of our knowledge, is doing with industrial hemp.”
The voluntary carbon credit market is expected to expand significantly as nations work toward net-zero emissions. Hempalta is positioning itself as a credible and scalable player through proprietary technology, utilizing satellite imaging and flux towers to accurately measure, report and verify carbon sequestration.
According to Bondar, industrial hemp is among the most effective crops for capturing carbon, with an acre capable of sequestering 4 to 5 tons of carbon, far surpassing the absorption rate of trees, which require decades to reach maturity.
While regulatory challenges for hemp production vary by country, Bondar noted that increasing global acceptance of industrial hemp is easing barriers to adoption.
“The biggest scrutiny that we face is just ensuring that the efficacy of our credits and the quality of our credits meet the demands and the requirements of the voluntary carbon market buyers,” he said.
Hempalta also announced a proposed non-brokered private placement to raise working capital. The proceeds will be allocated toward enhancing operational efficiency, advancing blockchain integration and improving marketing efforts to support both farmers and shareholders, Bondar said.
