The Namibian government and Kelp Blue have announced the development of Namibia’s first corporate Blue Bonds, aiming to raise N$1.4 billion (US$80 million) to fund up to 1,000 hectares of kelp forest off the coastline of Southern Namibia.
Kelp Blue aims to assess interest for the Blue Bonds placement in the first quarter of next year and to place the first of four annual US$20 million tranches in the fourth quarter of 2024 as it moves to commercially develop the world’s first large-scale kelp farm in Namibia.
The firm is considering a blue bond with the Namibian Stock Exchange (NSX).
The startup has secured a 100-hectare kelp forest license with plans to expand to 6,000 hectares in the coming two years.
Kelp Blue has already entered into a N$350 million multi-year offtake agreement with Kelp Blue Biotech (a sister company) for seaweed-based biostimulant produced in Luderitz.
“Kelp Blue has secured major global sales agreements, and bondholders can expect to see investment-grade returns while relying on Gold Standard certification of Kelp Blue’s carbon credits to assure themselves of the transparency and integrity of the environmental and social impacts.”
To enhance the commitment to Namibia’s oceans, 2.5% of the bond’s face value is being committed by Kelp Blue towards drone monitoring of the Namibian Islands Marine Protected Area (NIMPA) and educational programs.
The NIMPA incorporates almost 10,000 km² and is Africa’s second-largest proclaimed Marine Protected Area (MPA), situated along the southwestern coast of Namibia and directly adjacent to two national parks.
Kelp Blue is a sustainable oceanic aquaculture enterprise founded in 2020 with headquarters in The Netherlands and operations in Namibia, planning to harvest kelp canopy year-round to produce sustainable agri-foods and bio-stimulants.
Kelp Blue collects cultivated kelp from the seaweed canopy to produce alternative agri-food, bio-stimulant, and textile products, converting them into a variety of products, including bio-stimulants, at the new processing plant at Lüderitz.
Kelp Blue is currently developing a range of products based on Macrocystis, such as agri-feed to feed animals to increase productivity and stimulate digestibility.
According to De Beers, which has already provided N$40 million in funding to the startup, research has shown that kelp forests have carbon sequestration properties exceeding those of terrestrial forests and that they help sustain healthy marine ecosystems, providing food and shelter for countless species.
De Beers is a 50% partner of the Namibian government in marine-based diamond miner Debmarine Namibia and land-based diamond miner Namdeb Diamond Corporation.
