Triodos Food Transition Europe Fund takes equity stake in Ocean Rainforest

Investment supports Triodos' nature-based solution goals

Kaldbak, Faroe Islands, 16 September 2024 – Triodos Food Transition Europe Fund, based in the Netherlands, has acquired a minority equity stake in Ocean Rainforest. This marks the fund’s first investment in the sustainable aquaculture sector. In its announcement, the fund highlighted that this investment not only taps into a fast-growing global market but also aligns with Triodos’ commitment to Nature-Based Solutions, given the positive impact of seaweed on biodiversity and its capacity for carbon capture.

Ocean Rainforest raised a total of EUR 2.5 million in this funding round, with participation from both existing shareholders and new investors. Current shareholders include leading global impact investors such as Grantham Foundation, Builders Vision, Katapult Ocean, Twynam, and WWF.

Adam Kybird, Fund Manager of Triodos Food Transition Europe Fund, commented:
“Ocean Rainforest addresses three impact pillars: from an environmental perspective, cultivating seaweed at scale is associated with significant enhancement of marine biodiversity and water quality. Seaweed-based fertilisers and animal feed also contribute to the sustainable agriculture transition. From a consumer perspective, consumption of seaweed-based products improves the digestive system and brings anti-inflammatory and other benefits. Finally, from a socio-economic perspective, the company creates positive impact for coastal communities, creating jobs and positioning the Faroe Islands at the forefront of sustainable seaweed cultivation.”

Ocean Rainforest was founded in 2007 in the Faroe Islands, anticipating a surge in global demand for sustainable seaweed. The company is driven by the belief that cultivating seaweed in oceans can capture CO2 and help mitigate climate change. After years of research and trials, commercial cultivation began in 2013. Today, the company employs 25 people and is expected to produce 400 tons of seaweed biomass in 2024, up from 240 tons in 2023, making it Europe’s largest producer of cultivated seaweed. Its seaweed is used across key industries such as cosmetics, food ingredients, animal feed, bio-stimulants, and nutraceuticals.

Olavur Gregersen, CEO and co-founder of Ocean Rainforest, said: “We see the investment by Triodos Food Transition Europe Fund as a confirmation of our business strategy and our purpose to improve people’s wellbeing and make a unique contribution to our blue planet. With the funding provided by Triodos we will be able to further scale our production and capitalize on the huge potential of this global growth market while contributing even more to our sustainability goals.”

In addition to its operations in the Faroe Islands, Ocean Rainforest is cultivating giant kelp in US waters off the coast of Santa Barbara, California, under the first R&D permit for seaweed farming in federal waters. The company has recently applied for a permit to expand commercial seaweed cultivation offshore in California. If approved, this would make Ocean Rainforest the largest open-ocean seaweed cultivator in the US.

About Ocean Rainforest
Ocean Rainforest’s vision is to create local ocean rainforests around the world. Headquartered in the Faroe Islands, Ocean Rainforest is a leader in offshore seaweed cultivation with fully integrated production from seed to shelf-stable seaweed products, poised for significant expansion. The company is leading and participating in multiple, international R&D efforts in Europe and the United States to develop and optimize cultivation and processing strategies that will allow competitive supply of this sustainable biomass into a variety of products.

 Ocean Rainforest has established a U.S. subsidiary in Southern California, where it operates an offshore R&D permit for seaweed cultivation, as well as a pilot processing plant for bio stimulants and fermented feed. This is a critical step towards establishing commercial scale production and processing in the Eastern Pacific. Furthermore, Ocean Rainforest is a 50% shareholder in the land based seaweed cultivation company Lava Seaweed in Iceland, aiming at producing red seaweed species for food and functional feed.

About Triodos Investment Management
Triodos Investment Management connects a broad range of investors who want to make their money work for lasting, positive change with innovative entrepreneurs and sustainable businesses doing just that. In doing so, Triodos serves as a catalyst in sectors that are key in the transition to a world that is fairer, more sustainable and humane.

 Triodos has built up in-depth knowledge throughout our 25 years of impact investing in sectors such as Energy & Climate, Inclusive Finance and Sustainable Food & Agriculture. They also invest in listed companies that materially contribute to the transition toward a sustainable society. Assets under management as per ultimo June 2024: EUR 5.9 billion.

 Triodos Investment Management is a globally active impact investor and a wholly owned subsidiary of Triodos Bank NV.