‘Blue Bio Economy’; a sea of opportunities

More than 2/3 of our Earth's surface consists of water, and it is still underutilised for food production. There are therefore opportunities here. The report, which Invest-NL has helped develop, explains these opportunities offered by the sea ('Blue Bio Economy'). It also discusses bottlenecks (including financing, legislation and regulations, and business models) and possible solutions.

It is expected that by 2050 we will need to produce over 60% more food than we do now. Currently, 40% of the total available land area is used for agriculture. Given the effects of climate change, the amount of suitable land is likely to decrease rather than increase. The potential on land is therefore quite limited. As a result, there is an increasing focus on the sea as a source of food. Seaweed, for example, is particularly suitable as food for humans and animals, as a green raw material for pharmaceuticals, chemicals, and energy, and can also play an important role in capturing CO2. However, despite – literally – an ocean of possibilities, we see that promising initiatives in this ‘Blue Bio Economy’ are not always successful and often fail prematurely for the wrong reasons.

Involvement Invest-NL

"I am convinced that the Blue Bio Economy can be an important part of the energy transition. With some of the bottlenecks identified in the report, we at Invest-NL might be able to give a nudge in the right direction, making it possible for existing financiers to step in on financings that would otherwise remain non-financeable," says Wilco Schoonderbeek, Senior Business Development Manager Agrifood.

Funding Challenges

There are various reasons that can lead to promising initiatives being unable to secure the desired funding. Within the Blue Bio Economy, this includes, among other things, the fact that financiers are not familiar with this sector. As a result, a financier has insufficient insight into the risks and the potential profitability of the sector. Another issue is that financiers are often unable or hardly able to realise any positive societal benefits financially.

Role for Invest-NL

There is essentially no debate about the opportunities offered by the Blue Bio Economy. However, being able to realize these opportunities is not straightforward. There is often a significant need for patient capital. Invest-NL can make the difference here. We can wait longer for our money than most market participants. Additionally, we are willing to take on more risk, can invest larger amounts, and have access to government and European investment funds. Taking the example of algae; the potential is enormous, but it can still take ten years before it becomes economically viable to produce large quantities. Capitalizing on these opportunities requires substantial investments with a longer-than-average payback period.