Digital library

The North Sea Farm Foundation pioneers seaweed cultivation in the North Sea. This project addresses the economic prospects of up-scaled production of seaweed, looking at production costs only. Scenarios for future large-scale seaweed production are formulated and evaluated using the EnAlgae economic model. Additionally, Monte Carlo analysis is performed. Based on the findings, we conclude that a significant cost reduction seems possible, with expected cost prices down to €1,200 per ton DM. If all goes well, relatively low-value markets such as the alginate market are within reach. More realistically, a mix of low- and medium-value markets is needed to cover the costs of seaweed production in the North Sea. Current developments show that these markets exist; especially in the food market where seaweeds can be promoted as organic, sustainable and fair trade.

Microalgae receive rising attention because of their capacity to generate biofuels. Cultured either in ponds or photobioreactors, they have a high growth rate, occupy smaller cultivation land area than other biofuel-generating land crops and use CO2 as a substrate making them promising alternative to fossil fuels. 

Numerous techno-economic analyses (TEA) have assessed economic viability of the different options for microalgae cultivation, harvesting and conversion. A small meta-study of representative TEA and associated sensitivity analysis led us to identify factors that have the most influence on the outcomes of microalgae biomass use. Biological parameters such as lipid content and growth rate are commonly identified as two critical productivity parameters. Another consensus from several TEA studies is the commercial interest to produce a range of high-value co-products including animal feed and crop fertilizers that may actually compensate high costs of biodiesel production from microalgae. 

In parallel, recent life cycle analysis (LCA) studies gave us some insights on the inputs and outputs of microalgae-to-biodiesel supply chain that impact on sustainability. They reveal that net energy ratio is not favorable as the production of inorganic nutrients to feed algae and bioreactor consumption in particular require a lot of energy. Greenhouse gas are also generated along the processes of biomass production and lipid extraction, making microalgae-based biofuel production less carbon-neutral than initially thought. Finally, one common favorable parameter identified as critical by TEA and LCA is wastewater, the use of which to grow microalgae can indeed reduce the costs of biodiesel production and further support sustainability. 

Altogether these data indicate that the economic viability of biofuel production from microalgae remains challenging and requires the implementation of supportive policies from governments and supra-national organizations. Also, while filling the gap left by fossil fuels shortage was the initial trigger of microalgae use to produce biodiesel, their potential to contribute mitigating climate changes is today their greatest asset and warrants further R&D efforts. 

The potential economic impact of a fully developed mariculture industry in Alaska is not well understood by industry or policymakers. It is also not entirely clear what is needed to move from Alaska’s current micro industry to a fully developed industry. The Alaska Fisheries Development Foundation (AFDF) has been awarded a grant from NOAA in order to spearhead the Alaska Mariculture Initiative (AMI) with the following goals: (1) expand the stakeholder base, create partnerships, and increase capacity to be effective; and (2) develop a clear and comprehensive strategic plan, including a written commitment to implement the plan by the various stakeholders and agencies. Northern Economics, Inc. was contracted by AFDF to conduct an economic analysis to help inform decisions to be made in the creation of the AMI strategic plan. The economic analysis will contain three phases:

• Phase I: Comparative case studies which outline examples of successful mariculture industries in different regions of the world
• Phase II: Preliminary economic analysis to support the development of a statewide strategic plan
• Phase III: Analysis of the costs, benefits, and economic impact of the statewide strategic plan developed as part of the AMI

This report represents the work completed for Phase 1. Funding for Phases II and III is pending.

In this report we describe nine case studies. Drawing on existing literature, each case study includes (1) a description of the industry; (2) the current economic impact of the industry, (3) the history and reasons for the industry’s growth, as well as past and current obstacles to growth; (4) best available estimates of private and public investments in order to reach current levels of development; (5) estimates of costs and benefits of the return on investment in these regions; and similarities and contrasts to Alaska (e.g., workforce, transportation, government support programs) and relevance and applicability of the industry’s experiences to Alaska. Case studies completed include:

• Alaska salmon enhancement
• Alaska king crab enhancement
• Washington geoduck
• Florida hard cams
• Ireland Seaweed
• Spanish mussels
• Prince Edward Island mussels
• New Zealand mussels
• British Columbia First Nations aquaculture

These case studies provide insights into best practices in development of strategic mariculture initiatives, and attributes and characteristics (such as access to markets, employment base, government and public support, etc.) that have led to the success of mariculture development in other parts of the world. These factors can be compared to the current social, economic, regulatory, investment and political climate in Alaska to allow for efficient and effective development planning and implementation. The following subsections provide brief descriptions of each case study.

The importance of algivorous animals in the ecology of economic seaweeds has been recognised by many workers (Tilden, 1927; Leighton, 1960; Chapman, 1962; North, 1962, 1963; Boney. 1966). In recent years many studies have been made to ascertain the food and feeding habits of major algivores, the important among which are by Barkman ( 1955), van Dongen (1956), Bakker (1959), Satio and Nakamura (1961). Leighton and Boolootian (1963), Leighton (1966), Paine (1963) and Paine and Vadas (1969). In order to study the role of algivores in the ecology of cultivatable marine algae and to ascertain the nature of discri_ mination in the choice of algal food by them, a study was undertaken during 1968- '71 at tbe Marine Algal Researcb Station, Mandapam. This paper presents tbe findings pertaining to the cbief algivorous gastropods in tbe Gulf of Mannar and Palk Bay region.