BASF Venture Capital GmbH, the venture capital company of BASF SE (Germany), and Aqua-Spark, a Dutch investment fund specialized in the global aquaculture industry, are investing in Sea6 Energy Pvt. Ltd. in a Series B financing round.
Sea6 Energy, founded in 2010 and located in Bangalore, India is a leader in the production and processing of tropical red algae. Other existing investors include: Tata Capital Innovations Fund. With this investment, Sea6 Energy will complete its Series B transaction for a total amount of INR 1,402 million (approximately $18.5 million).
Red seaweed grows mainly in the tropical waters of Asia, where the constant high temperatures are conducive to year-round growth. The biomass of fast-growing red algae can be used as raw material for various applications, e.g. in animal feed and plant protection products, as a gelling ingredient in the food industry or as an ingredient in cosmetics. Only a small part of the commercially available seaweed comes from wild collections. Most of it is cultivated on farms, especially in Asia, and since 1950, the amount produced worldwide has increased a thousandfold. In 2019, nearly 35 million tons of seaweed were produced, about half of which was red seaweed. The market volume of seaweed products was nearly $17 billion in 2020. However, large-scale commercial sea farming is complex, and technical systems must withstand adverse weather conditions, such as storms and waves.
Sea6 Energy has adapted its farming technology to deeper water and adverse weather conditions and covers both parts of the value chain with its integrated business model. To identify the right locations and conditions for its farms, Sea6 Energy uses satellite imagery, for example. Under the right conditions, at least six harvests per year are possible.
The company is headquartered in Bangalore, India, while in Bali, Indonesia, it has established a wholly owned subsidiary dedicated to the commercial cultivation of seaweed. Sea6 operates several plants in Tuticorin, India, for the further processing of red algae for various applications. For example, the company produces biostimulants for agriculture and shrimp farming that increase resistance to disease and stress. Sea6 Energy is also working on the development of bioplastics and biofuels based on red algae. In addition, Sea6 Energy has developed a patented process that increases the shelf life of red algae from one to two days to 60 days. This facilitates the transportation of fresh red algae, which can otherwise only be transported over long distances after being dried.
" Sea6 Energy convinced us with its integrated business model" Markus Solibieda, Managing Director of BASF Venture Capital GmbH, said. " With its extensive experience in biotechnology, the team has created very good conditions upstream to cultivate red algae as biomass on a large scale, while demonstrating success downstream with its biorefinery. This opens up opportunities for the transition of traditionally crude-dependent industries, such as the chemical industry, to renewable feedstocks."
" Our vision is to be able to offer biomass and red algae products on a large scale in a sustainable and reliable manner. With our patented mechanized cultivation technology, we can produce high quality biomass on a large scale and at competitive prices, which can enable products such as bioplastics and biofuels" Shrikumar Suryanarayan, CEO and co-founder of Sea6 Energy, said. " We are pleased to have experienced partners on our side at BASF and we are pleased with the renewed commitment of Aqua-Spark."
" Sea6 has made great strides over the past year, and we are excited to continue supporting the company. We believe Sea6's algae cultivation technology is a real game changer for the industry, enabling a variety of commercial-scale red algae applications" Aqua-Spark managing partners Mike Velings and Amy Novogratz said. Aqua-Spark has been an investor in Sea6 Energy since June 2021.
The transaction also provides a partial exit and liquidity to Tata Capital Innovations Fund.
