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Economic feasibility of offshore seaweed production in the North Sea Sander van den Burg, Paul Bikker, Marinus van Krimpen & Arie-Pieter van Duijn

Economic feasibility of offshore seaweed production in the North Sea

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Presentation at the Aquaculture Europe Conference, August 2013 in Trondheim.

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Page 1: Economic feasibility of offshore seaweed production in the North Sea

Economic feasibility of offshore seaweed

production in the North Sea

Sander van den Burg, Paul Bikker, Marinus van Krimpen & Arie-Pieter van Duijn

Page 2: Economic feasibility of offshore seaweed production in the North Sea

Increasing interest in seaweeds

Interest in sustainable marine production

● World population growth

● Environmental pressures of imported feed and food

● Recovery of phosphor

● Alternative to land-based production

Offshore wind energy

● Large spatial claim (1,000 km2 for projected 6000 MW)

● Resistance from fishing community

● Responsible use of space

Page 3: Economic feasibility of offshore seaweed production in the North Sea

Against this background: TripleP@sea

Wageningen UR initiated research project

On Multi-use platforms in the North sea

4 year, multi-disciplinary project

Link to other projects, e.g. FP7 Mermaid

2012/2013: zooming in on offshore seaweed production

Our focus: economic research within TripleP@sea

Page 4: Economic feasibility of offshore seaweed production in the North Sea

Outline

Basic info on seaweed production in North Sea

Assess production costs

Review of seaweed applications and market values

Prospects for offshore seaweed production

Page 5: Economic feasibility of offshore seaweed production in the North Sea

90% of world production from aquaculture

Page 6: Economic feasibility of offshore seaweed production in the North Sea

Only just started in Netherlands

Page 7: Economic feasibility of offshore seaweed production in the North Sea

Production in Netherlands

On-going experiments with different production techniques (long-lines, nets)

Focus on indigenous species:

● Laminaria digitata

● Saccharina latissima

● Palmaria palmata

● Ulva lactuca

Page 8: Economic feasibility of offshore seaweed production in the North Sea

Experiences with seaweed aquaculture

Group: Brown algae Red algae Green algae

Species: Laminaria digitata,

Saccharina latissima

Palmaria palmata Ulva lactuca

Growth season September-May Summer Summer

Optimal water

temperature

<18 15-20 15-20

Grow speed Up to a daily increase of

DM of 20% under optimal

conditions

Up to daily increase of

35% of DM under optimal

conditions

Up to a daily increase in DM of

50% under optimal conditions

Yield/ha (DM) 15 15-20 20

Vulnerability

diseases

Colonised by several

organisms, thus hindering

its growth during spring

and summer

Unknown It tends to be free floating

under harsh conditions

Production risks Fast degradation in spring

(Saccharina latissima)

Uncertain whether the

plant will recover after

wintertime

Sudden disappearance

Page 9: Economic feasibility of offshore seaweed production in the North Sea

Estimate production costs

Analysis of publications on the costs of seaweed production show great differences:

Technology Invest Lifespan Operational Yield €/ tonne

DM

Source

€ Year €/year Tonnes DM

Ring 1,000

per unit

10 n.a. 0.040 2,500 Buck and Buchholz

(2004)

Long-lines n.a. n.a. n.a. 121-409 Reith, Deurwaarder et al.

(2005)

25,000

per ha

10 n.a. 35 71 Florentinus, Hamelick et

al. (2008)

25,000

per ha

n.a. 750 per ha

+ 104 per

tonne of DM

50 669 Lenstra et al. (2011)

45,615 10 12,155 1.6 10,448 Petrell, Tabrizi et al.

(1993)

Page 10: Economic feasibility of offshore seaweed production in the North Sea

Estimate production costs

Based on own experiences

Per ha lifespan

(year)

Per year Per tonne of

DM (20 tonne

yield)

Investment

in systems

Low

scenario

50,000 10 2,500 250

Investment

in systems

High

scenario

150,000 10 7,500 750

Seedlings 13,000 1 13,000 650

Labour 300 1 300 15

Harvesting 104

Total Low 1,019

High 1,519

Page 11: Economic feasibility of offshore seaweed production in the North Sea

Use of seaweed

Various applications of seaweed possible:

● Food

● Thickener/Alginates

● Feed

● Production of green chemicals

● Biofuel

● Research on:

● Plant hormones

● Omega-3

● Pharmaceuticals (e.g. Mannitol)

Page 12: Economic feasibility of offshore seaweed production in the North Sea

Use of seaweed

Various applications of seaweed possible:

● Food

● Thickener/Alginates

● Feed

● Production of green chemicals

● Biofuel

● Research on:

● Plant hormones

● Omega-3

● Pharmaceuticals (e.g. Mannitol)

Page 13: Economic feasibility of offshore seaweed production in the North Sea

If only...

Page 14: Economic feasibility of offshore seaweed production in the North Sea

Food

Worldwide: largest use of seaweeds

Niche market in the Netherlands

● Import from Asia, France

● Organic segment

● Restaurants

Page 15: Economic feasibility of offshore seaweed production in the North Sea

Niche developments

Page 16: Economic feasibility of offshore seaweed production in the North Sea

And in major supermarket chain

Page 17: Economic feasibility of offshore seaweed production in the North Sea

Thickener

Worldwide second-largest market

Up 1 million tonne seaweeds used

Value dependent on contents

Roughly 600 euro per ton DM

But alternatives available (tapioca, potatoes)

Page 18: Economic feasibility of offshore seaweed production in the North Sea

Feed applications

Although traditional use, literature review shows seaweeds are better not fed directly

Addition to pre-mix of feed is possible

Calculation using Bestmix:

Value (euro/100 kg

94%DM)

Value (euro/tonne of

DM)

Laminaria digitata 0.00 0.00

Saccharina latissima 4.40 46.64

Palmaria palmate 11.50 121.90

Ulva lactuca 4.60 48.76

Page 19: Economic feasibility of offshore seaweed production in the North Sea

Use as feed additive

Page 20: Economic feasibility of offshore seaweed production in the North Sea

Green chemicals

Production of basic chemicals (aceton, butanol, ethanol)

High value chemicals

Product Market

value

Production Value

€/tonne Kg/tonne of dry

seaweed

€/tonne of dry seaweed

Acetic acid 570 247 140

Butanol 707 123 87

Lactic acid 235 486 114

Propylene glycol 1,000 133 133

Citric acid 1,414 429 606

Page 21: Economic feasibility of offshore seaweed production in the North Sea

Prospects

Human food offers highest value

Challenge to develop market for seaweed

Other current applications offer too low values

Some high value applications are foreseen, but under development

How to reduce costs and increase benefits?

Page 22: Economic feasibility of offshore seaweed production in the North Sea

Conclusion

Reduce costs

● Improve production system (year round, two yields?)

● IMTA as alternative?

● Increase yield and control product characteristics

● Examine synergy with offshore wind

Page 23: Economic feasibility of offshore seaweed production in the North Sea

Multi-use platforms

Synergy with offshore wind energy in construction and/or transport?

Page 24: Economic feasibility of offshore seaweed production in the North Sea

Conclusion

Reduce costs

● Improve production system (year round, two yields?)

● IMTA as alternative?

● Increase yield and control product characteristics

● Examine synergy with offshore wind

Increase benefits:

● Look for combinations: high + low value

● Biorefinery required for high value applications

● And: bringing together different market actors

Page 25: Economic feasibility of offshore seaweed production in the North Sea

Thank you

For more information:

[email protected]