Industry game-changer? BASF and Aqua-Spark invest in red seaweed producer Sea6 Energy
18 Aug 2022 --- BASF Venture Capital and Aqua-Spark are investing in India-based Sea6 Energy, a tropical red seaweed producer. The undisclosed sum is part of the company’s series B funding round, which amounted to INR 1402 million (US$18.5 million) in total.
“Our business units that are suppliers to the nutrition and cosmetics industry are constantly exploring the potential of sustainable and bio-based raw materials,” Markus Solibieda, managing director BASF Venture Capital, tells NutritionInsight.
Biomass from the fast-growing red seaweed is suitable as a raw material as a gelling ingredient in the industry or as an ingredient in cosmetics. It can also be used in animal feed and crop protection products.
Dutch investment fund Aqua-Spark, which focuses on the global aquaculture industry, has been an investor in Sea6 Energy since June 2021.
“We believe Sea6’s seaweed cultivation technology is a real game-changer in the industry, making a variety of applications of red seaweed possible on a commercial scale,” notes Aqua-Spark managing partner Mike Velings.
Companies are increasingly eyeing the potential of red seaweed. Large scale cultivation
Demand for seaweed has surged as consumers increasingly seek out functional snacking. To this end, the European Commission earlier this year launched a stakeholder platform to promote algae use for nutrition and packaging
Red seaweed grows mainly in tropical waters in Asia, which have constant, high temperatures conducive to year-round growth of seaweed. Only a small proportion of the commercially offered seaweed comes from wild collections. Most of it is grown in farms, particularly in Asia, and since 1950, the quantity produced worldwide has increased a thousandfold, BASF notes.
“Sea6 Energy convinced us with its integrated business model. With its extensive experience in the field of biotechnology, the team has created very good upstream conditions for cultivating red seaweed as biomass on a large scale,” says Markus Solibieda, managing director of German-based BASF Venture Capital.
Utilizing technology
Sea6 Energy has adapted its cultivation technology to the conditions in deeper water and adverse weather conditions and covers both parts of the value chain with its integrated business model.
To identify the right locations with the right conditions for its farms, Sea6 Energy uses satellite imagery. Under suitable conditions, at least six harvests per year are possible, the company underscores.
“Our vision is to be able to offer red seaweed biomass and products on a large scale sustainably and reliably,” says Shrikumar Suryanarayan, CEO and co-founder of Sea6 Energy.
“Thanks to our patented mechanized cultivation technology, we can produce high-quality biomass on a large scale at competitive pricing, which can enable products like Bioplastics and Biofuels as well.”
BASF’s investment comes as the company announced last month it was seeking to strengthen core product platforms with its new global business unit, Nutrition Ingredients. Companies are also eyeing marine bio-industries, with Australian businesses landing nearly US$202 million for nutraceuticals and seaweed-based polymers.
By Andria Kades
