environment

TNC and Encourage Capital report on blue revolution investment

The Nature Conservancy (TNC) has changed their tune on aquaculture as of late. Realizing that aquaculture will be needed in attaining food security with an ever growing population, they have shifted their focus on sustainable aquaculture and the blue revolution.

The report titled “Towards a Blue Revolution: Catalyzing Private Investment in Sustainable Aquaculture Production Systems“ goes into great detail to summarize aquaculture markets along with their investment and economic risks and rewards. The authors claimed, “If we can shift production toward the most sustainable forms of aquaculture production, we can not only foster healthier marine ecosystems, but also a stronger global food system. “

When it comes to seaweed

The report says with seaweed aquaculture the risks are low and so is the capital needed, however, the financial gains are high with scaling (Figure below).

  • Core Seaweed Investment Thesis

    • Already profitable at smaller project sizes with significant financial upside to scaling

    • Proven production methods with many skilled operators and potential expansion to new species and regions

    • Large and diverse market opportunity for both globally

  • Seaweed Impact Thesis (Environmental)

    • Represent the clearest environmental value proposition given they: (a) possess the lowest input requirements of any aquaculture production model, and (b) can provide ecological benefits to surrounding ecosystems in the form of water filtration, nitrogen removal, and habitat provision.

risk and capital.PNG