Kelp Blue is preparing to invest approximately €15 million (about N$280 million) in a commercial-scale processing facility in Lüderitz as rising harvest volumes and growing product demand outpace the capacity of its existing pilot plant.
The company said its current processing facility is becoming a bottleneck as production expands, prompting plans for a major capacity upgrade targeted for completion by mid-2027.
Speaking to The Brief, Kelp Blue Deputy Operations Manager Iriya Jona said the pilot factory currently processes about 9,000 litres per day, with optimisation underway to increase capacity to 15,000 litres per day before the facility reaches its operational limit.
“Currently, our pilot factory is handling production, but as you can see, we are scaling up harvesting and sales are increasing. The factory is becoming a bottleneck, which means we need to start moving towards a larger facility,” Jona said.
The planned commercial factory will increase processing capacity to approximately 80,000 litres per day.
“Setting up a new factory takes almost a year and a half. We therefore need to begin planning now by ordering machinery, ensuring it meets our requirements, importing it, renovating facilities, installing equipment and commissioning operations. We are targeting completion around mid-2027, but the work starts now,” she said.
In the meantime, the company plans to invest about €1 million to optimise its existing processing facility to ensure it can meet expected demand over the next year.
“The objective is to ensure that next year, once we optimise the current factory, we can meet sales demand from pilot-scale production. Beyond that, we anticipate demand exceeding what the current factory can support, so we need to prepare in advance,” Jona said.
Kelp Blue is forecasting revenue of €3 million this year, increasing to €5 million next year as production and sales continue to grow.
“In terms of sales, we are targeting revenue of €3 million this year. Next year, we aim to reach €5 million and then continue increasing from there,” she said.
Production remains seasonal, with factory operations running between November and June in line with kelp growth cycles and environmental conditions.
Alongside the planned factory expansion, the company is investing in additional farm infrastructure to support future production growth.
Jona said some of the equipment currently in operation has been in use for nearly four years and is beginning to show signs of wear.
“Rather than waiting until growth is affected or infrastructure becomes a constraint, we are proactively adding more lines and equipment to create a buffer and ensure continuity,” she said.
The company is also expanding cultivation areas, increasing automation and exploring commercial opportunities for by-products and waste streams generated during processing.
As part of its sustainability strategy, Kelp Blue continues to work with Gold Standard to develop a methodology for measuring carbon sequestration from its seaweed farming operations.
“We submitted the methodology last year, and we are now waiting for it to be reviewed and validated,” Jona said.
