Scarborough Seaweed Pioneers Secure Six-Figure Funding for ‘Blue Economy’ Expansion

A Yorkshire Coast company dedicated to enhancing ocean health through the farming of seaweed and shellfish is set for significant expansion after securing a six-figure loan.

The funding for Scarborough based Seagrown, comes from the Northern Powerhouse Investment Fund II (NPIF II).

SeaGrown, which maintains its headquarters in Scarborough, currently employs 16 staff. The company operates a 25-hectare cultivation site located in the sea off Scarborough. The financial support is intended to enable the firm to expand its business operations and secure new commercial contracts.

Seaweed cultivation is recognised for its environmental benefits, including its ability to improve water quality, increase biodiversity, and draw down carbon.

Pioneering Technology

The company’s innovative Kelpedo system differentiates it from current cultivation methods by enabling both seaweed and shellfish to be grown at scale and in diverse locations. Crucially, the system has also been designed to be operated by fishing boats, potentially providing opportunities for local fleets to diversify their work.

Captain Wave Crookes, founder and Operations Director, affirmed the system's readiness for wider adoption. Captain Crookes, a former fisherman who has held senior roles in the Royal Navy and RNLI, stated:

“As someone from a fishing family who has spent their life on the water, I have been saddened to see the state the oceans are in. Laura and I decided to dedicate our talents and experience to tackling this crisis. With the Kelpedo system now tried and tested and backed by scientific data, it is exciting to be able to roll it out to the wider world”.

Captain Crookes founded the company in 2018 alongside marine scientist Professor Laura Robinson; the pair initially met while working on the British Antarctic Survey.

Growth and Commercial Potential

SeaGrown has already demonstrated the viability of its operations through substantial projects. A £2.8 million government demonstration project previously found that the technology used by SeaGrown could ‘transform the seaweed industry’. More recently, a project run as part of a biomass programme by the Department of Energy and Net Zero concluded that the technology could transform seaweed production from being a "cottage industry".

The firm has already worked with the two biggest wind farm operators, Orsted and RWE, and secured an international biodiversity competition run by RWE last year. While SeaGrown sells a range of seaweed products in collaboration with other local businesses, its largest potential market is identified as ports, offshore operators, and utility companies seeking ways to minimise their impact on the environment.

Regarding future growth, the company expects to double its current workforce in Scarborough within the next two years.

Funders’ Confidence

The investment was welcomed by the funding partners, who highlighted the firm's role in the developing 'blue economy'. Andy Clough of Mercia Debt stated that there has been “growing interest in cultivating seaweed in recent years as businesses start to recognise the benefits”. He says that SeaGrown’s unique system “could drive rapid uptake by enabling cultivation at scale”. Mr Clough added that the funding will help the company take on new commercial contracts and “establish itself as a key player in the UK’s ‘blue economy’”.

Lizzy Upton, Senior Investment Manager at the British Business Bank, which facilitates NPIF II, remarked that SeaGrown is “a great example of how innovative Northern businesses are leading the way in developing sustainable technologies that benefit both the economy and the environment”. The Northern Powerhouse Investment Fund II (NPIF II) aims to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses.

The £660m Northern Powerhouse Investment Fund II (NPIFII) covers the entire North of England and provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.

The purpose of the Northern Powerhouse Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North of England. The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for the North’s smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.