Scalability of hemp-based thermal insulation in the United States – A Monte Carlo-based techno-economic approach

Abstract

Decarbonizing the construction sector is vital to meet the U.S. national greenhouse gas emission targets. To this effect, the development and deployment of bio-based alternatives to existing construction materials is becoming an increasingly used strategy to reduce the embodied carbon of the built environment. Hemp-based insulation is one such alternative. While several studies have aimed to quantify the environmental benefits of deploying hemp insulation, the economic modeling is currently limited to purchase price data. In this study, a Monte Carlo-based techno-economic model is proposed to fill this gap. The developed model incorporates the uncertainty surrounding a supply chain in its infancy to determine the economic viability of the hemp insulation across a range of input parameters. The results obtained show that the retrofit of existing bioproducts/manufacturing plants to produce hemp insulation increases the rate of payback and breakeven. The model further analyzes the economic viability of hemp insulation across different production rates and selling prices, which in turn reflects the economic performance across different rates of demand and market penetration of the insulation. Further sensitivity analysis shows that the price of the procured hemp fibers, the selling price of the finished product, and the demand for the finished product are key factors that determine the magnitude of economic success. Lastly, this study shows the need for further development of the hemp supply chain and the hemp market, with opportunities for manufacturers to strongly consider mass production of hemp insulation.