Problem: With every passing year, the evidence for climate change grows stronger, while arguments against fail to stand up to repeated 100-year storms, rising coastal waters, and temperature increases great enough to make Siberia habitable. With the slew of problems such as food supply, farmable landmass, and carbon content in the air all demanding new investments and solutions, one particular industry stands out as an alternative all-star: seaweed farms.
Before you think of the gross stuff clinging to the piers of whatever lake comes to mind, it is important to note that seaweed is edible, if you weren’t already aware of the multitude of Asian countries that use it as part of a standard diet. However, as regenerative and symbiotic as aquaculture is (especially for the price of $20-50k and a boat), it lacks something the current agriculture system has in abundance, and that is centuries of mechanization and efficiency improvements of a global workforce of farmers. As put by Science Direct:
“By comparison with major agricultural commodities produced in the United States, it is expensive, presently, to grow seaweed but not so expensive as to think that with larger-scale development and mechanization it cannot become competitive, especially since some seaweeds have apparent advantages over terrestrial crops. For example, because some of them are fast-growing, it is often possible to produce multiple crops per year in the same space, while the aquatic environment allows for farming all year round in most latitudes. Also, since coastal waters are often rich or overenriched with nutrients, there is no need for fertilizer, which is a substantial input cost incurred by terrestrial farms. Fast growth and multiple crops per year allow for a comparatively high yield per unit area.”
In essence, seaweed would be competitive in nearly every manner if it were not so labor intensive, the most common issue reported with farms. The global seaweed market is valued at around $8.8 billion, with a 7.5% CAGR estimated from 2021-2025, but is still limited by labor requirements, with only about 2 million tons of seaweed produced globally per year.
Solution: This business would seek to catch the aquaculture industry up on centuries of progress by mechanizing the production of seaweed. Currently, the process involves manually deploying and hoisting lines connected to buoys in a space of ocean. Maintenance includes checking lines and cages for growth and health while not interfering with or damaging the vertical cells within the aquatic farm.
Sufficient mechanization would likely require one of two things: either a method to easier maintenance (thus increasing hectares of farmed ocean) or ease of deployment, reducing the initial investment of time and effort (and potential damages incurred) by farmers. While both solutions will require some creativity, underwater observation platforms like drones or cameras could dramatically reduce effort to inspect the verticals and have not yet hit the market.
With use cases in smoothies as an additive, supplements, salad replacements, and more, seaweed offers the same nutritional benefits as other greens such as kale with many opportunities to integrate into the Western food market. As global conditions continue to change, palettes must shift as well. Just as John Deere revolutionized farming (and is now valued over $92 billion), whatever equipment unlocks the next generation of food production globally will be swimming in their kelp-green earnings.
Monetization: Sales of equipment or services provided to optimize ocean farms
Contributed by: Alex Kessel (Intern at Billion Dollar Startup Ideas)