| August 10th, 2023 | Highlights

THE KELP INDUSTRY: OPPORTUNITIES, BARRIERS, AND NEXT STEPS

Authors: Sunniva Tangen Haldorsen (NIVA), Gunhild Borgersen (NIVA), Arne Duinker (IMR), Peter Haugan (IMR), Cecilie Wathne (Norwegian Blue Forests Network)

Seaweed farming could become a major industry in Europe, with many predicting that the industry is about to take off. Among the countries in question is Norway. The need for more food for a growing global population and sustainable feed for land-based livestock and farmed fish are both strong drivers for increasing the focus on low-trophic species such as seaweed. However, there are economic, technological, regulatory, and environmental challenges that need to be addressed before the industry can scale significantly. In order to deliver a sustainable source of food, feed and fertiliser, we need to think long term and develop the industry on nature’s terms.

Macroalgae farming is increasingly recognised as an important industry for people, the planet and the ocean economy. Seaweed and other macroalgae are nutritious food sources and key ingredients in hundreds of products, from medicines to cosmetics. They can also be used as an environmentally friendly substitute in fish and animal feed, plastics, fertilisers and fuels. Research suggests that growing macroalgae can help mitigate climate change, increase biodiversity and improve water quality. As the industry expands, it also creates new jobs.

The Norwegian government and a number of global institutions and initiatives have selected macroalgae as a high-priority industry. The Ocean Panel lists algae cultivation as one of four priority actions for sustainable new ocean industries.¹ Similarly, the Norwegian government has, through the Hurdal Platform, committed to facilitate the seaweed industry. Initiatives such as the Seaweed Manifesto, supported by UN Global Compact, demonstrate the interest of global industrial players.

Macroalgae cultivation is on the way to becoming a major industry in Europe

Macroalgae have been an important resource for people across the world for centuries. Modern cultivation methods were developed in the 1950s-1970s. Towards the end of this period, mechanical harvesting of wild species also took off. In Norway and many other countries, wild algae harvesting is currently a larger industry than cultivation. At the global scale, however, cultivation facilities produce 27 times more biomass than what is harvested from the natural macroalgae forests along the coast.²

Over 98% of macroalgae cultivation took place in Asia in 2020.³ However, there is increasing investment in the industry in Europe and other regions. In 2020, 35 million tonnes of macroalgae were cultivated globally.⁴ Producing this biomass requires around 2,000 km² of ocean surface.⁵ By comparison, a study shows that 48 million km² of the ocean is suitable for macroalgae cultivation.⁶

Macroalgae farming is one of the fastest growing aquaculture industries, with an annual growth rate of 6.2 per cent over the past two decades.⁷ Growth in tropical macroalgae cultivation has slowed in recent years, but cultivation of temperate and cold-water species has continued to increase.⁸

At least 56 countries are engaged in macroalgae cultivation, but it is still a nascent industry.⁹ In order to scale cultivation, we need to address economic, technological, regulatory, environmental and market-related challenges.

Norway is betting on the seaweed industry

There are approximately 480 species of macroalgae along the Norwegian coast. These can be divided into three main groups: brown algae, red algae and green algae. Most cultivated and harvested species, including kelp, are classified as brown algae. Like many countries, the use of macroalgae is not a new phenomenon in Norway. It has been used as a fertiliser, raw material, and food source for hundreds of years. Indeed, the red algae dulse (Palmaria palmata) was likely an important part of the Viking diet when they went on expeditions. Livestock such as cows, sheep and pigs are also known to eat seaweed along the shoreline. Seaweeds have historically been used as supplementary animal feed during the winter, as evidenced by the inclusion of the word “pig” and “sheep” in the common name for popular seaweed species. While human use of macroalgae declined over time, interest in these species is once again on the rise – in part due to the increased focus on environmental sustainability.

Seaweed has been mechanically harvested in Norway since the 1970s. Approximately 120,000-180,000 tonnes of the kelp tangle (Laminaria hyperborea) and 20,000 tonnes of rockweed (Ascophylum nodosum) are currently harvested each year.¹⁰ Several businesses have indicated an interest in entering the kelp trawling industry. However, a large increase in production will primarily have to come from kelp farming.

The first licences to cultivate kelp in Norway were granted in 2014. Since then, the number has increased significantly, to 539 licences at 105 sites in 2022. Of these, 221 are registered as being in operation by 24 different companies.¹¹Most of the operational sites are located in areas that can be classified as low-exposure or partially exposed in terms of weather and wind, either as separate sites or co-located with other aquaculture industries, such as fish farming, in a concept known as integrated multi-trophic aquaculture (IMTA).

The amount of kelp cultivated in Norway is steadily increasing, despite variations from year to year. Production rose from a first-year harvest of 50 tonnes in 2015, to nearly 340 tonnes in 2022. Yields declined slightly in 2021 and 2022, to around 240 tonnes.¹² However, 2023 is a record-breaking year, with approximately 600 tonnes of cultivated and harvested seaweed. The most common cultivated species are sugar kelp (Saccharina latissima) and winged kelp (Alaria esculenta).

The industry has ambitions and plans to rapidly scale up the production of cultivated kelp in the coming years. The goal is to establish large-scale, profitable production that can contribute to, among other things, increasing the amount of food and feed harvested from the sea. Although there are several issues that first need to be solved, many predict that Norway could become an important future producer. Norway has, among other things, extensive experience with aquaculture, one of the world’s longest coastlines, and less competition for space than most European countries. It is also known for its clean water and high-quality seafood.

The many uses of Norwegian seaweed

Mechanically harvested wild seaweed is primarily used for extraction of various components as well as the production of seaweed meal and other seaweed extracts. Among the products from trawled kelp, alginate from tangle (Laminaria hyperborea) stems, also called stipes, is the most well-known and utilised. Alginate is widely used in the food industry as a thickening or stabilising agent, and is found in everything from toothpaste to sauces and ice cream. Alginate is also used in medicines and in cosmetics to stabilise creams. There is a growing discussion about the need to more effectively use the trawled seaweed biomass by, for example, eliminating the use of formaldehyde as a preservative. This would make it possible to use not only stipes, but also blades and the red algae, dulse (Palmaria palmata), that grows on the stipes.

Cultivated kelp is primarily used for food and, to a certain extent, feed production. However, there is a strong focus on developing additional products. As with trawled kelp, cultivated kelp can be biorefined to produce bioplastics and to extract bioactive components. Studies have also shown that the inclusion of some types of seaweed in cattle feed can help mitigate methane emissions. However, it is important to note that this is still in the early stages, and more research is needed.

Thus far, cultivated kelp as food in Norway has centred on small-scale production of dried kelp, mostly sold as dried kelp flakes in small packages or as whole leaves. This production approach has a finite potential for scale-up, as the capacity of the drying equipment and facilities are limited. Producers are therefore shifting to other means of preservation, such as fermenting or acid ensiling. The fermented or ensiled kelp can be further processed to make products such as kelp granules and kelp salad, or serve as an ingredient in food or feed.

By integrating these techniques with more automated processes, production volumes can rapidly increase. This, in turn, makes it possible for the food and feed industry to use larger quantities of cultivated kelp in their products. Kelp has naturally high levels of iodine, which can be advantageous for those with deficiencies, but it can also limit the consumption levels of untreated kelp. However, the iodine content can be lowered as a part of the processing, allowing for the incorporation of higher levels of kelp, while still upholding acceptable iodine levels in the end products. Preserved kelp can also undergo bioprocessing and extraction of bioactive components, but – as is the case for trawled kelp – more knowledge and technology are needed before this is a viable option. Kelp can also be used as a biofuel. However, for this to become a profitable product, kelp production volumes would have to substantially increase while production costs would need to substantially decrease.

Environmental impacts of kelp cultivation at current levels are largely positive, but we need to consider risks

Kelp cultivation can have both positive and negative effects on the environment. Kelp can contribute to enhanced water quality by absorbing nutrients from the water column and generating oxygen through photosynthesis. In addition, kelp can contribute to reducing the pH in the ocean, which, if kelp is grown at scale, can contribute to mitigating ocean acidification. Kelp farms can also serve as a habitat for other species and thus contribute to increased biodiversity. Kelp efficiently absorbs large amounts of CO₂ from the atmosphere. Large-scale cultivation can therefore contribute to combating climate change, provided that the carbon within the seaweed is stored in the seabed or soil rather than released back into the atmosphere, or that the kelp displaces products with higher greenhouse gas emissions.

Kelp farming can also have negative effects on the marine environment. The potential spread of disease or genes from kelp farms probably poses the greatest risk to the natural kelp forests in the vicinity. Disease outbreaks are a challenge for the kelp industry in a number of countries, but there is as of yet no documented case of disease pathogens spreading from farmed kelp to natural kelp forests. Similarly, there are no documented cases of the transmission of genetic material from cultivated to wild kelp. However, there has been limited research on these potential risks. An important measure to protect kelp forests is to cultivate local, non-genetically modified kelp species. Kelp farms can also contribute to the spread of undesirable non-native species, compete with other primary producers for nutrients, and have a negative impact on the seabed if large amounts of the algae break off and accumulate in concentrated areas.

There are currently few direct studies on the environmental effects of kelp cultivation in Norway and Europe. So far, the results indicate that the environmental effects of a small-scale kelp industry, such as that in Norway, are minimal. At this scale, kelp farming has significant potential to be an environmentally friendly and sustainable industry. However, if the industry grows as predicted and the size of kelp farms increases to industrial scale, the likelihood of negative effects will also increase. Factors such as farm placement, use of local kelp, timing, harvesting methods and mitigation measures will all have an impact on the industry’s footprint on the marine environment.

The amount of wild seaweed that is mechanically harvested each year comprises a small portion of Norway’s overall kelp forests. The trawling industry is therefore considered sustainable at its current levels. It takes approximately 3-4 years for new kelp to fully grow back in the harvested areas, and another couple of years are needed for the ecosystem to regain its previous diversity and productivity.¹³ Kelp forests serve as vital spawning and nursery areas for a range of species. In addition, they provide food and protection, as well as various additional ecosystem services, including carbon storage. At a local level, kelp trawling can therefore impact all levels of an ecosystem. Norway has rules regarding the permissible trawling zones for kelp. However, there are currently no regulations governing the amount of kelp that can be harvested within these zones. For the wild seaweed harvesting industry to become environmentally sustainable, we need stronger regulation with a focus on whole ecosystems.

What is needed to further develop the kelp industry in Norway and Europe?

The kelp cultivation industry in Norway is relatively young but holds significant potential for value creation. To fully realise this potential, it is essential to control every stage of the value chain – from managing genetic materials to seedling cultivation, deployment and growth at sea, harvesting, processing, and the market. Many existing processes rely heavily on manual labour, hindering scalability. There is therefore a need in the industry to prioritise automation in all stages of production. It is also crucial to recognize that kelp cultivation is fundamentally a biological process governed by nature’s principles. Gaining the necessary knowledge and experience to navigate potential challenges will take time. Fostering a degree of openness and collaboration among the various stakeholders is important to collectively develop the industry more quickly.

The expansion of the kelp industry is reliant on access to sufficient and suitable marine areas. The placement of kelp farms is determined by zoning plans and licensing procedures, and it is only possible to apply for a licence in areas set aside for aquaculture. This approach can result in unnecessary competition between fish farmers and kelp farmers for the same areas, even though kelp farms have distinct prerequisites such as specific depth, seabed conditions, currents, and exposure levels. There may be areas unsuitable for fish farming but ideal for kelp cultivation, for example, because the environmental impacts of kelp cultivation are considered to be significantly lower than those of fish farming.

With the increasing interest and activity in offshore wind and aquaculture, it makes sense to consider offshore kelp farming. This move would give farmers access to large areas, but requires technological development. , The challenging weather conditions offshore mean development is needed in terms of the farm design and work processes, as well as the logistics related to deployment, follow-up and harvesting of the kelp. Co-locating kelp farms with offshore wind farms and other aquaculture is of great interest, as a way to maximise use of offshore areas. Several research projects are ongoing to explore these opportunities.

A major challenge with kelp cultivation is that seaweeds are considered new products in Western markets, necessitating the development of both products and markets alongside the upscaling of production. For product development, we must focus on preserved kelp. Access to fresh, cultivated kelp is currently limited to a short season from April to June, mostly due to biofouling (growth of other organisms on the kelp) and decay later in the season. Even exploiting the natural seasonal variations along the Norwegian coastline, where kelp is first harvested in Western Norway and later further north, the season will not extend beyond April to August. Consequently, the successful expansion of the industry depends on establishing a rapid, effective, economical, and suitable method for preserving fresh kelp. In addition, companies engaged in kelp production for food purposes will need to sell portions of their produce for other applications, such as animal feed and cosmetics, to ensure the entire kelp yield enters the market, albeit at a reduced price. The industry also faces obstacles when exporting products due to different threshold values for iodine and heavy metal content in different countries. The European Food Safety Authority (EFSA) is working to develop common standards for the European Union.

As of July 1, the seaweed industry is included in the Norwegian Fish Export Act. This change facilitates further development of the industry. It means that the seaweed industry will be able to benefit from the Norwegian Seafood Council’s services, including its important marketing work abroad. In addition, the Norwegian Seafood Research Fund (FHF) will be able to issue grants for research and development of the industry. With the right regulations, technical developments, and a focus on long-term environmental sustainability, the seaweed industry in Norway and Europe should be set to thrive.

Read the original publication in Norwegian. This brief was the basis for the popular 2023 NBFN-hosted panel event at Arendalsuka

DOWNLOAD BRIEF (Norwegian)

Citation

References – see full list below

[1] The High Level Panel for a Sustainable Ocean Economy (2022)

[2] UNEP (2023)

[3] FAO (2022) and World Bank (2023)

[4] FAO (2022) and World Bank (2023)

[5] Duarte et al. (2022)

[6] Froehlich et al. (2019)

[7] FAO (2020) and Duarte et al. (2022)

[8] FAO (2020) and Chopin & Tacon (2021)

[9] Lloyd’s Register Foundation et al. (2020)

[10] Ministry of Trade, Industry and Fisheries (2022)

[11] Norwegian Directorate of Fisheries (2023)

[12] Norwegian Directorate of Fisheries (2023)

[13] The Institute of Marine Research (2021), Norderhaug et al. (2021a), Norderhaug et al. (2021b), Olaisen (2023), Steen (2020) and Christie et al. (1998)

Sources and further reading, by section

Introduction

Duarte, C.M. et al. (2022). A seaweed aquaculture imperative to meet global sustainability targets. Nat Sustain 5, 185–193. https://doi.org/10.1038/s41893-021-00773-9

FAO (2022). The State of World Fisheries and Aquaculture 2022. Towards Blue Transformation. Rome, FAO. https://doi.org/10.4060/cc0461en

FAO (2018). The global status of seaweed production, trade and utilization. Globefish Research Programme Volume 124https://www.fao.org/publications/card/es/c/CA1121EN

Global Seaweed Coalition (2023). Building a safer seaweed industry. Website visited 14 June 2023 https://www.safeseaweedcoalition.org/

High Level Panel for a Sustainable Ocean Economy (2022). Transformations for a Sustainable Ocean Economy: A Vision for Protection, Production and Prosperity https://oceanpanel.org/wp-content/uploads/2022/06/transformations-sustainable-ocean-economy-eng.pdf

Labour Party & Centre Party (2021). Hurdalsplattformen: For en regjering utgått fra Arbeiderpartiet og Senterpartiet, 2021-2025 [The Hurdal Platform: For a government by the Labour Party and the Centre Party, 2021-2025]https://www.regjeringen.no/no/dokumenter/hurdalsplattformen/id2877252/?ch=1

Lloyd’s Register Foundation et al. (2020). Seaweed Revolution: A manifesto for a Sustainable Future https://ungc-communications-assets.s3.amazonaws.com/docs/publications/The-Seaweed-Manifesto.pdf

Norwegian Blue Forests Network (2023). Top 10 trends of 2022 . https://nbfn.no/ttt-22/

UNEP (2023). Seaweed Farming: Assessment on the Potential of Sustainable Upscaling for Climate, Communities and the Planet. Nairobi. https://www.unep.org/resources/report/seaweed-farming-assessment-sustainable-upscaling

World  Bank (2023). Global Seaweed New and Emerging Markets Report 2023. https://www.worldbank.org/en/topic/environment/publication/global-seaweed-new-and-emerging-markets-report-2023

Zi-Min Hu et al. (2023). The global state of kelp farming and a brief overview of environmental impacts. Special chapter in the UNEP report Into the Blue: Securing a Sustainable Future for Kelp Forests  https://nbfn.no/wp-content/uploads/2023/04/UNEP_2023_Into-the-Blue_Report_English_high-res.pdf

Macroalgae cultivation in Europe

Chopin, T., & Tacon, A. G. (2021). Importance of seaweeds and extractive species in global aquaculture production. Reviews in Fisheries Science and Aquaculture, 29(2), 139-148. https://doi.org/10.1080/23308249.2020.1810626

Duarte, C.M. et al. (2022). A seaweed aquaculture imperative to meet global sustainability targets. Nat Sustain 5, 185–193. https://doi.org/10.1038/s41893-021-00773-9

FAO (2020). The State of World Fisheries and Aquaculture 2020: Sustainability in Action. Rome. https://www.fao.org/documents/card/en/c/ca9229en

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Zi-Min Hu et al. (2023). The global state of kelp farming and a brief overview of environmental impacts. Special chapter in the UNEP report Into the Blue: Securing a Sustainable Future for Kelp Forests  https://nbfn.no/wp-content/uploads/2023/04/UNEP_2023_Into-the-Blue_Report_English_high-res.pdf

Norway is betting on the seaweed industry

Institute of Marine Research (2018). Framtidsrettet matproduksjon i kyst og fjord – En vurdering av muligheter for økt sjømatproduksjon i Norge [Future-oriented food production in coastal and fjord areas – An assessment of opportunities for increased seafood production in Norway]. Project report. https://www.hi.no/resources/23-2018-Framtidsrettet-mat_1408.pdf

Norderhaug, K.M. et al. (2020). Mot en ny havnæring for tare? Muligheter og utfordringer for dyrking av alger i Norge [Towards a new ocean  industry for kelp? Opportunities and challenges for cultivation of algae in Norway]. Institute of Marine Research report series Fish and the Sea, ISSN:1894-5031 https://www.hi.no/templates/reporteditor/report-pdf?id=37885&71479755

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Norwegian Ministry of Trade, Industry and Fisheries (2022). Høringsnotat om endringer i fiskeeksportloven og tilhørende forskrifter [Consultation paper on amendments to the Fish Export Act and associated regulations] https://www.regjeringen.no/contentassets/8cbeedd22f0541d2b09e7ad40940860f/horingsnotat-forslag-om-endringer-i-virkeomradet-til-fi-l3825037.pdf

Olafsen, T. et al. (2012). Verdiskaping basert på produktive hav i 2050 [Value creation based on productive oceans in 2050]. Report from a working group appointed by the Royal Norwegian Society of Sciences and Letters and the Norwegian Academy of Technological Sciences. https://www.sintef.no/globalassets/upload/fiskeri_og_havbruk/publikasjoner/verdiskaping-basert-pa-produktive-hav-i-2050.pdf

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The many uses of Norwegian seaweed

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Environmental impacts  

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Hancke, K. et al. (2021) Miljøpåvirkninger av taredyrking og forslag til utvikling av overvåkingsprogram [Environmental impacts of kelp cultivation and how to develop a monitoring programme]. NIVA report 7589-2021. https://niva.brage.unit.no/niva-xmlui/handle/11250/2731345

Hasselström, L. et al. (2018). The impact of seaweed cultivation on ecosystem services – a case study from the west coast of Sweden. Marine Pollution Bulletin, 133, 53-64. doi:10.1016/j.marpolbul.2018.05.005

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Norderhaug, K.M. et al. (2021a). Bærekraftig taretråling – Vurdering av bærekraftskriterier ved Vikna [Sustainable kelp trawling – Assessment of sustainability criteria for Vikna]. Institute of Marine Research report, ISSN: 1893-4536.https://www.hi.no/hi/nettrapporter/rapport-fra-havforskningen-2021-46

Norderhaug, K.M. et al. (2021b). Miljøpåvirkning fra dyrking av makroalger – Risikovurdering for norske farvann [Environmental impact from cultivation of macroalgae – Risk assessment for Norwegian waters]. Institute of Marine Research report. https://imr.brage.unit.no/imr-xmlui/handle/11250/2760166

Olaisen, S.F. (2023). Slik såg tareskogen ut etter tråling – Forskarane meiner det førebels er berekraftig [This is what the kelp forest looked like after trawling – Researchers believe it is sustainable]. NRK. https://www.nrk.no/nordland/slik-sag-tareskogen-ut-etter-traling-_-forskarane-meiner-det-forebels-er-berekraftig-1.16237538

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Steen, H. (2020). Tilstandsvurdering av høstefelt for stortare i Møre og Romsdal og Trøndelag i 2020 [Condition assessment of harvesting sites for kelp in Møre og Romsdal and Trøndelag in 2020]. Institute of Marine Research report, ISSN:1893-4536.https://www.hi.no/templates/reporteditor/report-pdf?id=37279&01243090

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Further developing the seaweed industry

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