🙏 Thanks in advance for reading this article. It’s part of a series called Ecosystem Players where I highlight and celebrate startups, founders, and initiatives that foster the development of the tech ecosystem across emerging markets.
Although this series is not relatively new, it is the first time I actually talk about a startup. I aim to highlight those operating in unique verticals or with the business models I find the most interesting — value > hype.
I got to know Kelp Blue through an article by How we made it in Africa back in 2020, where the startup outlined its plans to initiate operations in Namibia. Since then, the startup managed to secure about $10 million in investments from private investors and De Beers.
Kelp Blue’s ultimate goal? To commercially develop the world’s first large-scale kelp farm.
Foundation
Daniel Hooft, Founder and CEO, has a fascinating story. Raised in Toronto (Canada), Daniel started his career as a Sculptor out of Amsterdam (Netherlands) before joining the oil industry where he then spent over 20 years working across 7 different countries.
During the same period, he realized that despite its influence, due to the multiple pressures and business constraints, the most significant advancements toward a greener environment would not really emerge from the oil industry.
He occasionally found the work of Tim Flannery, a renowned Australian scientist with solid insights on the role of seaweeds in countering climate change while boosting biodiversity in the oceans. It only took Daniel two months of excessive research to know that that’s exactly what he would be doing.
Early in 2020, Kelp Blue was founded to provide and manage artificially assisted kelp forests at a large scale in a profitable manner.
Although there are always tradeoffs to any solution, Kelp Blue’s potential positive impact on rebalancing the ocean geochemistry and therefore helping to sustain healthy marine ecosystems, providing food and shelter for countless species is immense.
What About Kelp?
Kelp has various uses in different industries. Fresh kelp is a valuable feed for aquaculture, while dried and milled kelp improves soil and water retention, and contains essential micronutrients and bio-actives that improve plant resilience.
Kelp extracts, which is one of the startup’s core focus, are used as plant protection products, fertilizers, and bio-stimulants, while extracted alginate is a vegan substitute for gelatin (which you’d probably be surprised to know about its vast applications). Kelp also contains pharmaceuticals such as fucoidan and fucoxanthin, which have various health benefits.
The uses and benefits do not end there, you can read about Kelp here.
Kelp Blue’s Business Model
Wondering how Kelp Blue would generate revenue right? Although some uses of Kelp were just mentioned and all present revenue opportunities to the startup, the major focus is on what could be the industry’s next big thing: biostimulants, for use as plant stimulants for the organic agricultural market.
Those biostimulants are products that increase the robustness and resistance of crops/ plants against bacterial and viral activities, which results in better root growth, fruit growth, and flowering.
Additionally, Kelp Blue is also exploring the development of alginates, the gelatin substitutes I just mentioned, and pharmaceutical compounds.
Footprint
Namibia — Kelp Blue currently has pilot operations in Namibia (Lüderitz), where the startup currently cultivates macrocystis, benefiting from the constant upwelling of the Benguela current and ample hours of sunlight.
The startup also has a strong community approach at its core. They’ve built a school in Lüderitz, and offer a range of extracurricular activities such as robotics, ocean skills, swimming, etc.
Alaska — The startup has also secured a 60-hectare license in April 2022 to set up a kelp farm near Craig/Klawock and envisions that its operations will generate 20+ new full-time jobs in environmental monitoring, engineering, and kelp processing (plus dozens of indirect jobs) in its first year of operation.
New Zealand — Similar to the one in Lüderitz, Kelp Blue also has a macrocystis pilot farm in Akaroa Bay used to demonstrate the best-in-class macrocystis cultivation, understand the impact of giant kelp cultivation on the environment through an extensive monitoring program, and optimize its biorefinery process to harness the beneficial components in giant kelp, starting with biostimulants for the agricultural sector.
2029 Vision
The startup is in its early stages and despite the social and environmental upside being obvious, a major challenge becomes the long-term sustainability of the entire infrastructure - which I am confident Daniel and the rest of the team will eventually achieve.
Here’s how you can help:
Want to know more about their products? Visit their dedicated page
For potential partnerships or if you are interested in joining Kelp Blue’s team, reach out
Help spread the word:
Reference(s):
National Ocean Service. (2023, January). What is a kelp forest? Retrieved from Service. www.oceanservice.noaa.gov
How we made it in Africa. (2020, February 11). The business of seaweed: Large-scale kelp farm to be developed in Namibia. Retrieved from www.howwemadeitinafrica.com/the-business-of-seaweed-large-scale-kelp-farm-to-be-developed-in-namibia/74964
Peter Mwangangi. (2022, October 28). BBC: Underwater Seaweed Farming in Namibia [Video]. YouTube. www.youtube.com/watch?v=cTbX05jv5o0