Agriculture and Forestry Minister, Devin Dreeshen with BioComposites Group CEO Dan Madlung, regarding hemp processing - (photo credit to Chris Schwarz/Ab. Gov't)

By Dori Modney

Emerging Industry

Alberta diversifying agriculture through hemp fibre processing

Jul 8, 2021 | 4:54 PM

DRAYTON VALLEY, AB. — The Alberta government is underscoring its focus on building a strong agriculture section, with an eye to creating jobs and attracting investment in value-added processing.

To that end, the province and the federal government have announced more than $300,000 in financial support for the non-profit Alberta Hemp Alliance (AHA). The one-time grant, to be allocated over two years, will help set up a provincial industry association for hemp processing through the Canadian Agricultural Partnership.

The AHA expects to be self-sustainable beyond its first years of operation by creating revenue streams from membership fees, an industry sales levy, education and training, webinars, conferences and trade shows.

While making the announcement in Drayton Valley on Wednesday (July 8), Minister of Agriculture and Forestry, Devin Dreeshen noted the Canadian Agricultural Partnership has also provided more than $950,000 in grants to BioComposites Group Inc. (BCG) in the past three years, to support growth in Alberta’s help fibre industry.

“Emerging industries like the hemp fibre sector are creating full-time local jobs and driving diversification in Alberta. It’s great to see BCG and the Alberta Hemp Alliance committed to rural revitalization and supporting our ambitious targets for job creation, investment attraction and increased agricultural and value-added exports.”

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Drayton Valley-Devon MLA, Mark Smith, sees the investment as a game-changer for his region.

“Alberta’s government is focused on attracting investments into the value-added sector and we can confidently say that BCG and the Alberta Hemp Alliance are partners in that vision. Together, we can create a sustainable hemp processing industry that will create jobs and diversify our economy.”

Dan Madlung, CEO of BioComposites Group, BCG now sources hemp straw from Alberta farmers, to maximize the entire plant product. In turn, it bolsters farm income and leads to a more resilient agriculture sector. BCG is ensuring Albertans have access to high-quality and sustainable hemp products.

“Hemp straw was previously just a waste product for growers. We have built the biggest hemp processing hub in North America, creating value-added products that we market internationally. I’m proud that BioComposites Group is an Alberta company working to find sustainable solutions in multiple industry sectors, increasing farm income and creating environmentally sustainable products.”

The grant will allow the Alberta Hemp Alliance to continue building a diverse and collaborative community to encourage rapid growth of the hemp industry in the province, while facilitating market development, provincial networking, and resources.

Right now, BCG’s Terrafibre products use Canadian-grown fibres that are decorticated, cleaned and manufactured in Alberta.

The company is planning to build a new facility to decorticate hemp and flax, and manufacture insulation and green building products. The project will take 18 to 24 months to complete, resulting in a $30-million investment, 100 full-time jobs, crop diversification and income for farmer, while creating 100,000 tonnes of carbon sequestration in the first phase.