Cellular Goods PLC (LSE:CBX) has announced that its subsidiary King Tide Carbon will create a new joint venture to develop carbon sequestration and removal services in the kelp farming industry.
King Tide has signed a memorandum of understanding to partner with Springtide Seaweed - one of America’s largest organic kelp farms - for two years, Cellular announced on Monday.
“Springtide Seaweed and King Tide will use their combined efforts to identify, analyse and select kelp species, cultivation techniques and harvesting techniques to maximise carbon sequestration and removal,” Cellular explained.
Kelp, which is a type of algae, can be used to capture carbon dioxide and is more efficient in doing so than trees since its entire surface area is used for photosynthesis, according to King Tide.
Under the agreement, Springtide will produce kelp for use by King Tide at its Maine state-based farm.
This can then be used to capture carbon to generate carbon credits or to create less carbon-intensive production sources.
Differing kelp species, cultivation and harvesting techniques will be chosen and assessed by the pair to identify the best conditions for carbon removal services, with a deal aiming to be signed in the “near term”.