An offshore aquaculture company based in the Faroe Islands has received €2.5 million from a fund managed by the investment arm of a Dutch bank.
The Triodos Food Transition Europe Fund, launched in 2014 by Triodos Investment Management (IM), announced this week it will fund Ocean Restoration, one of the largest cultivated seaweed producers in Europe operating in the Faroe Islands and the US.
This marks the fund’s first investment in the sustainable aquaculture sector, contributing to Triodos’ commitment to invest in nature-based solutions as a part of a broader target to reach net zero by 2035.
The investment gives the fund a minority stake in the company, Triodos IM said in a press release.
Other shareholders include US-based Grantham Foundation, impact platform Builders Vision, Norwegian investment firm Katapult Ocean, Australian venture capital company Twynam, and WWF.
“From an environmental perspective, cultivating seaweed at scale is associated with significant enhancement of marine biodiversity and water quality,” Triodos IM stated.
“Seaweed-based fertilisers and animal feed also contribute to the sustainable agriculture transition.”
Launched in 2009, Ocean Restoration said it is on track to harvest 400 tonnes of kelp in the Faroe Islands this year.
The company is also growing giant seaweed in the US offshore Santa Barbara, California, seeking to get permission from the federal government for commercial cultivation.
Unlike fish farming, seaweed cultivation is seen as one of the most nature positive practices in the aquaculture industry as it delivers key ecosystem services, including providing nursery habitat for a variety of marine species.
“With the funding provided by Triodos, we will be able to further scale our production and capitalise on the huge potential of this global growth market while contributing even more to our sustainability goals,” Olavur Gregersen, CEO and co-founder of Ocean Rainforest, said in a statement.
Impact investment-focused Triodos IM managed €5.7 billion as of the end of 2023. Earlier this year, it partnered with Canadian pension fund Fondaction Asset Management to develop a platform for hosting natural capital-related funds of institutional size.
Biodiversity-specific funds passed $1.5 bln by the end of 2023, with eight vehicle launches throughout the period despite relative underperformance across the board, Carbon Pulse analysis found in March.
By Giada Ferraglioni – giada@carbon-pulse.com
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