Kelp Blue wins Sustainability award and issues Blue Bonds

The Namibian subsidiary of the Dutch company Kelp Blue has received a sustainability award at the climate summit in Dubai, United Arab Emirates and announced more investments by issuing blue bonds.

Kelp Blue was selected during the ongoing COP28 as the winners of the prestigious Zayed Sustainability Prize in the Climate Action category. Recognition was given for the large-scale positive climate impact growing giant kelp forests on the planet, by enhancing ocean health and sequestering carbon.

The Zayed Sustainability Prize, initiated by the UAE in 2008, recognizes impactful sustainable solutions in Health, Food, Energy, Water, Climate Action, and Global High Schools. Honouring the legacy of Sheikh Zayed bin Sultan Al Nahyan, it has celebrated 106 winners in 15 years.

Kelp Blue, founded in 2020, specialises in the cultivation of giant kelp. With its primary operations based in Lüderitz, Namibia. By cultivating giant kelp, the company seeks to restore marine biodiversity, promote carbon sequestration, support a healthier ocean ecosystem, inspire a global shift towards sustainable practices and environmental stewardship.  

Kelp Blue plants and cultivates giant kelp forests near Lüderitz and harvests only the canopy to produce bio-stimulants. It also has a kelp farm in New Zealand.

Giant kelp, one of the fastest-growing organisms, offers diverse applications in various products from pharmaceuticals to textiles. Kelp Blue’s cultivation approach requires no land, fresh water, fertilisers or pesticides.

A day after winning the award on 1 December 2023, Kelp Blue announced that it plans to launch a blue bond programme towards the end of 2024, with the goal of raising US$20 million annually for four years. “This funding will be utilised for the planting of up to 1,000 hectares of kelp forests offshore from Lüderitz in Namibia,“ the company stated.

The bonds will be launched on the Namibian Stock Exchange (NSX).

The bond programme will contain clear definitions that highlight the positive environmental impacts, including carbon sequestration, biodiversity monitoring, job creation, and regional economic diversification stemming from the planting of the kelp forests. Some 2.5 percent of the blue bond proceeds will be committed annually to enhancing marine wildlife conservation and protection, supporting the effective implementation of the Namibian Islands Marine Protected Area (NIMPA) management plan.

According to the World Bank's definition, blue bonds are “a debt instrument issued by governments, development banks or others to raise capital from impact investors to finance marine and ocean-based projects that have positive environmental, economic and climate benefits.”

Brigitte Weidlich