Ann Ruddy

Field of Expertise

Innovation, sustainability, scalability, distruptive technologies, pre-seed towable floating seaweed farms, micro-processing units, increasing the volume and value of seaweed, engagement with stakeholders: fishers, rural coastal communities, policy makers, ORE entities

Expertise

Company Overview

Alga Seaweed Ltd, previously known as Redrose Developments Limited, is an Irish-based company at the forefront of the seaweed industry. Founded by Ann Ruddy, Alga Seaweed Ltd aims to create a sustainable, scalable, and equitable seaweed supply chain in Ireland to address both national and international markets. The company has filed patents for a prototype of a modular seaweed processing unit designed to fit within a shipping container, processing sustainable amounts of seaweed into valuable liquid and solid outputs.

Value Proposition

Our innovative system breaks down the barriers for market entry for small scale ocean farmers, our modulated, pre-seeded towable floating seaweed farm enables fishers to become part of the growing seaweed economy. Aligning with our nearshore micro-processing units that creates increased volume and value from the seaweed, creating a shared value model and increased supplies of high quality seaweed outputs to meet growing market demand in multiple sectors. Our systems operate sustainably, not just environmentally, but also commercially adding value to society, the planet and a strong commercial proposition.

Alga Seaweed Ltd offers several unique advantages:

• Sustainability: The processing units are designed to process seaweed immediately after harvest, retaining micronutrients and moisture while reducing transportation and carbon emissions.
• Equitable Supply Chain: By working with local harvesters, the company ensures a consistent and sustainable supply of both cultivated and wild seaweed.
• Scalability and Mobility: The modular design of the processing units allows for scalable deployment and easy transportation to different coastal areas, supporting small and large-scale operations.
• Environmental and Economic Impact: The company’s operations support rural economic development, create local employment opportunities, and contribute to reducing CO2 emissions.

Business Model

Alga Seaweed Ltd's business model is built on both upstream and downstream activities:

• Upstream Revenue: Generated through an owner-operator franchise model, where franchisees process wet biomass into liquid and dry seaweed. Each franchise unit operates with a 5-year commitment, a 25% franchise fee, and a €50k buy-in fee. The units can process up to 800 kg of seaweed per day, being active 70% of the year.
• Downstream Revenue: Generated from selling processed seaweed into various high-value markets, including food, cosmetics, nutraceuticals, agriculture, and industrial applications. The company targets profit margins of €1/liter for liquid seaweed and €4.50/kg for dry seaweed.

Industry and Market Analysis

The global seaweed cultivation market is projected to grow from $16.7 billion in 2020 to $30.2 billion by 2025, with a CAGR of 12.6%. The European market for seaweed is growing at a 6-10% CAGR, with increasing demand driven by health and sustainability trends. Europe, as the top global exporter, had wholesale revenues of €35 million in 2019 from 472,000 tonnes of seaweed. The market within Europe has a potential value of €9.3 billion by 2030, capable of mitigating 5 million tonnes of CO2 emissions annually.

Implementation and Marketing

Alga Seaweed Ltd has successfully sold 3 tonnes of dry brown seaweed at €33.25 per kg into the EU market and established strong client relationships. The initial focus markets include fertilizer and soil enhancers, animal feed, nutraceuticals, and pet food. The company has been invited to participate in several EU and US accelerator programs, and is currently working with ClimMaritime funded by EIT Climate-KIC.

Financial Plan

To date, Alga Seaweed Ltd has secured €300k from friends and family funding rounds, €126k in grants, and over €100k from accelerators. The projected annual revenue for each franchise unit is €118k in the first year, rising to €280k for years 2-4. The company projects revenues of €5.1 million for 2023 and €9.8 million for 2024.

The ongoing €800k fundraising round will support a 12-16 month runway before commercial sales, aiming to produce the first commercially-active processing unit and floating farm by Q4 2022. Funds will be allocated as follows: 40% CAPEX, 40% SG&A, and 20% product development.

Conclusion

Alga Seaweed Ltd is strategically positioned to capitalize on the growing demand for sustainable seaweed products. With a strong value proposition, innovative business model, and significant market potential, the company is well-equipped to drive economic growth, environmental sustainability, and create resilient coastal communities. Ann Ruddy's leadership and the company's robust business model promise attractive profits and solid annual recurring revenue (ARR) as the business scales.