Florida is known for its sunny beaches and theme parks. But in March 2023, the state had a new attraction; a giant floating pile of seaweed. Satellite images showed a seaweed mass covering 550 square kilometers, or about 77,000 football fields, that posed a threat to Florida’s coastlines, especially its wildlife, beaches, and economy.
Sargassum is a type of seaweed that floats on the surface of the ocean, forming large mats or rafts. While it may sound harmless, since 2011 sargassum has been blooming out of control, invading coastlines throughout the Caribbean, and causing a lot of problems for people and the environment. Sargassum smothers coral reefs and other marine environments, reducing the oxygen and light levels in the water, killing the marine life that depends on them. And once it reaches the shore, it piles up on beaches creating an unpleasant sight and smell.
So, what can be done to stop this seaweed menace?
Well, one option is to burn it, but that would only create more waste and pollution. A second option is to use chemicals and other agents to kill it, but that would also harm the ecosystem, marine life, and has other potential health risks. There is an option to do nothing and hope it goes away, but that almost always makes things worse.
Luckily, there is a fourth option; turn sargassum into a resource and solution.
Enter Algas Organics
Algas Organics is a biotechnology company that uses seaweed, specifically sargassum, to make farming more climate resilient.
According to the Global Carbon Project, fertilizers are responsible for 2.5% of global greenhouse gas emissions. The main sources of these emissions are in the production and application of fertilizers, especially nitrogen based ones. Nitrous oxide (N2O), which is over 200 times more potent than CO2 in warming the plant, is produced when the excess nitrogen breakdowns by microbes in the soil; on average, only about half of the nitrogen is used by the plants, with the rest being converted to nitrous oxide and other forms of nitrogen.
Algas Organics collects sargassum from affected coastlines and converts it into organic fertilizers and other additives for crop production. They use a patented Pro-Enzymo hybrid fermentation process that concentrates bioactives, metabolites, and growth compounds while removing heavy metals; basically they are removing the bad stuff and concentrating the good stuff in the extract.
Business Model
Their business model is based on three main pillars; low cost of raw materials, high value products, and environmental benefits. Algas Organics can source its raw material at very low costs to free from affected coastlines where sargassum is considered a waste and annoyance. The seaweed is then converted into highly effective fertilizer products; they’ve stated that their products can increase root mass, yield, and quality of crops, giving them a competitive edge over other fertilizer companies. Finally, it is also good for the environment; their fertilizer products reduce nitrous oxide emissions by up to 80% and carbon dioxide emissions by up to 60% while also increasing carbon sequestration.
Currently, Algas Organics primarily sells to smaller farms that primarily grow crops for local consumption. They are starting to expand their operations and sell to larger commercial farms; however, that introduces demands and quality standards challenges.
Challenges
According to a Statista report, the global fertilizer market was $193 billion in 2021 and will only continue to increase with food demand. To capture more of this market, Algas Organics will need to overcome the following:
Logistics and regulatory hurdles to transport sargassum across country borders from coastlines to their processing facility
Continue to obtain certifications and permits; they’ve already obtained many of the required certifications in the US and EU for farms to use their products on crops
Raw material uncertainty; the availability and quantity of sargassum depends on season and location. Also, demand for sargassum will increase as more sargassum-based products are launched in other industries
Competition from other fertilizer companies that offer cheaper and/or more widely available products
Algas Organics has found a creative, brilliant way to turn a massive problem into a profitable solution. Their product improves crop production while reducing climate impact and using an otherwise wasted material. We love solutions like this and are very excited to see Algas Organics expand their operations. As always, let us know if we can help.
If you liked this, check out our piece on how PanaSea is using sea cucumbers help address climate change and our diets.
From the ocean floor to your plate
Biases and Priors Team Coral has always attempted, as all good writers should, to be upfront regarding our biases and priors (it’s a long list). Among these is our belief that degrowth, the concept that humans need to have fewer children and accept lower standards of living in service of fixing the climate, is well intentioned but also dumb. Before we di…