Canadian agri-tech company Hempalta has acquired full ownership of the Hemp Carbon Standard (HCS), cementing its position in the voluntary carbon market. The company purchased the remaining 49.9% stake in the digital carbon platform from UK-based ClimaFi for $63,544 (CAD90,000).
Farmers working in an industrial hemp field in Canada. Ai generated picture.
This acquisition builds on Hempalta’s initial 50.1% purchase earlier this year, enhancing its capacity to deliver carbon credits derived from industrial hemp farming. Full control of HCS grants Hempalta operational authority over proprietary methodologies for carbon measurement, reporting, and verification.
HCS uses a digital framework to help farmers establish credible baselines, design targeted climate action plans, and track progress. Through its ‘HCS Carbon Certificates,’ the platform certifies carbon capture and long-term storage via regenerative agriculture, biochar, and biomass burial.
HCS has already demonstrated significant impact, sequestering 15,325 tonnes of CO2 in 2023, with over 3,000 carbon credits sold by mid-2024. The company anticipates generating 50,000 tonnes of nature-based carbon removal credits in 2024, aiming for a minimum price of $25 per tonne.
The agreement includes additional earnout payments to ClimaFi, contingent on HCS meeting sales targets for its 2023 and 2024 credits. If these targets are achieved, further payments of up to $285,000 (CAD410,000) could be triggered.
HCS manages 13,556 acres of hemp farms across Canada, the US, and other markets, tripling its operations in the past year. With complete control of the platform, Hempalta plans to scale its sustainability programs globally, offering enhanced value to farmers, landowners, and corporate buyers.
Read more: Exploring Article 6.4 of the Paris Agreement: a post-COP29 analysis
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